Financial technology innovation, corporate sustainability performance and Shariah-compliance performance in Islamic rural banks

Purpose This study examines the effect of financial technology (FinTech) adoption, FinTech literacy and access to finance on corporate sustainability (CSP) and financial performance (FP) in Islamic rural banks (IRB) in Indonesia. This study uses four components of CSP in Islamic banks: social, environmental, economic and Shariah-compliance sustainability performance (SCSP). Design/methodology/approach Using convenience sampling, data were collected via an online questionnaire distributed via Google Forms to 144 IRB directors in Indonesia. Findings FinTech adoption, FinTech literacy and access to finance positively influence CSP and FP. CSP is a crucial factor for improving FP. Testing the separate SCSP indicator reveals that FinTech adoption positively influences SCSP, while FinTech literacy and access to finance do not. Finally, SCSP positively influences FP. Originality/value This study contributes to the literature in three ways: (1) by providing the first empirical evidence on the effect of FinTech adoption on CSP among IRBs, (2) by examining the impact of FinTech adoption on both CSP and FP in the IRB context and (3) by extending the CSP framework through the inclusion of SCSP as a distinct dimension for assessing sustainability in Islamic banks.