Influence of FinTech Adoption on ESG Performance in Commercial Banks of Pakistan

Shahid Mahmood and Ahsan Riaz

Journal of Accounting and Finance in Emerging Economies, 2026, vol. 12, issue 2, 357-370

Abstract: Purpose: This study examines the direct impact of FinTech adoption on the Environmental, Social, and Governance (ESG) performance of commercial banks in Pakistan, addressing the limited empirical evidence on this relationship in emerging economies.Design/Methodology/Approach: The study implements a quantitative research design based on a positivist philosophy and deductive approach. Data were collected from the commercial banking sector in Pakistan and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the proposed relationship between FinTech adoption and ESG performance.Findings: The results reveal a significant positive relationship between FinTech adoption and ESG performance, indicating that greater adoption of financial technologies enhances the ESG practices of commercial banks in Pakistan.Implications/Originality/Value: This study provides fresh insights into the existing literature by presenting empirical evidence from an emerging economy on the positive relationship between FinTech adoption and ESG performance. The findings highlight FinTech as a strategic tool for achieving sustainability objectives and offer valuable insights for policymakers and banking practitioners in designing technology-driven strategies to promote sustainable development within the financial sector.

Keywords: FinTech Adoption; ESG Performance; Commercial Banks; Pakistan; Sustainability (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:src:jafeec:v:12:y:2026:i:2:p:357-370

DOI: 10.26710/jafee.v12i2.3866

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