Digital Transformation And Sustainable Banking: Enhancing Green Finance And Fintech Adoption In Pakistan's Online Banking Sector

Abstract

This study examines the role of digital transformation in enhancing green finance and Fintech adoption within Pakistan’s online banking sector, focusing on how sustainable banking practices drive technological advancement and financial innovation. Using a quantitative research approach, data were collected from 493 respondents within the Pakistani banking sector, and statistical modelling techniques were applied to analyze the relationships between green finance, digital transformation, and Fintech adoption. The findings reveal that green finance significantly influences Fintech adoption, with digital transformation serving as a key mediator that links sustainability initiatives with advancements in financial technology. While customer trust enhances confidence in digital banking, the study highlights that technological efficiency, regulatory support, and cybersecurity play a more decisive role in influencing Fintech adoption. This study offers a novel contribution by integrating sustainability with digital banking transformation, providing insights for financial institutions, policymakers, and regulatory bodies on aligning green finance initiatives with emerging Fintech solutions. By embracing sustainability-driven banking models, financial institutions can enhance financial inclusion, reduce their environmental footprint, and modernize their services—ultimately contributing to a more resilient, technologically advanced, and sustainable financial ecosystem in Pakistan.