Research Aims: To examine the interconnections among fintech innovation, economic dimension, green finance, and sustainable banking performance in digital banking transformation, addressing the gap in understanding their concurrent effects. Design/methodology/approach: Quantitative study using Structural Equation Modeling (SEM) and Partial Least Squares (PLS) with data from 145 employees and managers of commercial banks in Indonesia. Research Findings: The results validate that fintech innovation has a beneficial impact on green finance and sustainability outcomes. The economic aspect profoundly influences both green finance and sustainability performance, indicating that profitability remains a fundamental concern. Green finance serves as a critical mediator, influencing the impact of both fintech innovation and economic factors on sustainability performance, suggesting that technological and economic factors are more effective in improving sustainability results when facilitated by green financing products and services. Theoretical Contribution/Originality: Research limitation and implication: Limited to Indonesian banking context with 145 respondents, affecting generalizability. Offers practical insights for bank management and policymakers in developing sustainable digital banking strategies.
Sorongan et al. (Thu,) studied this question.