This study examines the role of environmental finance (ENF) in enhancing sustainability performance (SP) within the banking sector, emphasizing financial innovation (FINV) and financial technology (FinTech). It specifically investigates how ENF supports FINV, which subsequently affects SP, and whether the adoption of FinTech moderates these relationships. Based on a survey of 272 bank employees, this study uses partial least squares structural equation modeling (PLS-SEM) to analyze data. The results indicate that ENF positively impacts both SP and FINV, with FINV serving as a partial mediator between ENF and SP. However, the expected moderating role of FinTech adoption was not confirmed, indicating that the current level of FinTech integration in Saudi Arabian banks may not significantly influence the ENF-SP relationship. Thus, this study provides a deeper understanding of the interactions between ENF, FINV, and SP while also underscoring the necessity for further investigation into contextual factors that influence FinTech’s role in sustainability. Therefore, policymakers should create and reinforce regulatory frameworks that encourage ENF and FINV in the banking sector while also promoting the integration of FinTech with ENF initiatives, which could enhance its positive impact over time.
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