FINTECH AND GREEN FINANCE: ASSESSING THE IMPACT OF FINANCIAL TECHNOLOGY ADOPTION ON SUSTAINABILITY PERFORMANCE IN EMERGING ECONOMIES

Abstract

Emerging economies face the dual challenge of achieving economic growth while addressing environmental concerns. Green finance has gained prominence as a mechanism to fund sustainable projects; however, mobilizing capital efficiently remains a hurdle. Financial Technology (FinTech) offers a transformative solution  by enhancing accessibility, efficiency, and transparency in green finance. This study investigates the role of FinTech adoption in promoting green finance and its impact on sustainability performance, with green finance initiatives as a mediating factor. Using primary data from firms in emerging economies, the study employs structural equation modeling (SEM) to analyze relationships between FinTech, green finance, and sustainability outcomes. Findings reveal that FinTech adoption significantly enhances green finance accessibility, which in turn improves sustainability performance. The study contributes to financial sustainability literature and offers policy recommendations for leveraging FinTech to scale up green financein emerging markets, thereby driving sustainable economic development.