THE MEDIATING ROLE OF GREEN BANKING PRACTICES ON THE RELATIONSHIP BETWEEN FINTECH ADOPTION AND BANKS’ SUSTAINABILITY PERFORMANCE IN SRI LANKA

Abstract

This study attempts to examine how FinTech adoption impacts the sustainability performance of the banking sector in Sri Lanka, focusing on how green banking practices act as a mediator. The study fills a vacuum in the literature by integrating how the banking industry might support environmental sustainability through the incorporation of digital technologies. The study used a cross-sectional quantitative approach by collecting data from 342 managerial-level bank employees at systematically important banks in Sri Lanka. Hayes' PROCESS macro was used to explore the direct and indirect implications of FinTech Adoption, green banking practices, and sustainability performance. The results indicate that banks' sustainability performance and FinTech adoption are strongly and positively related. The study also highlights the importance of the mediating role that green banking practices play in this relationship. Banks may minimise their environmental impact while increasing operational efficiency and adhering to sustainability standards by adopting green banking practices and utilising digital technologies. By recognising FinTech and green banking practices as significant intangible resources for long-term competitive advantage, it also expands on the Resource-Based View (RBV) theory. The findings nevertheless provide practical insights for policymakers and bank managers in aligning digital transformation with sustainability objectives.