The economic impact of fintech adaptation on sustainable banking performance: The role of green finance and innovation in Indonesia

Authors

  • Zahra Ardya Rizwana Department of Managament, Universitas Pembangunan Jaya
  • Meylia Adillah Department of Managament, Universitas Pembangunan Jaya
  • Vidiyana Anggrayni Department of Managament, Universitas Pembangunan Jaya
  • Tita Rosalia Department of Managament, Universitas Pembangunan Jaya
  • Muhammad Zidane Alfandito Department of Managament, Universitas Pembangunan Jaya
  • Edi Purwanto Department of Managament, Universitas Pembangunan Jaya

DOI:

https://doi.org/10.53088/jerps.v5i1.1454

Keywords:

Fintech Adaptation, Sustainability Performance, Green Finance, Green Innovation, Sustainable Development

Abstract

This study examines the economic impact of fintech adaptation on sustainability performance in the Indonesian banking sector, with green finance and green innovation as mediating variables. A quantitative research approach was employed, utilizing secondary data from six Indonesian banks listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023. Path analysis was applied to evaluate to assess relationships among fintech adaptation, green finance, green innovation, and sustainability performance. The findings reveal that fintech adaptation significantly influences green finance but has a limited impact on green innovation and direct sustainability performance. Additionally, green finance and green innovation do not significantly mediate the relationship between fintech adaptation and sustainability performance. These results highlight the challenges of integrating fintech into sustainable banking initiatives in emerging markets. The study underscores the need for enhanced regulatory frameworks, strategic fintech adoption, and increased collaboration among financial institutions to drive sustainability efforts. Future research should explore additional factors influencing sustainability performance in banking.

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Published

2025-03-27

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Rizwana, Z. A., Adillah, M., Anggrayni, V., Rosalia, T., Alfandito, M. Z., & Purwanto, E. (2025). The economic impact of fintech adaptation on sustainable banking performance: The role of green finance and innovation in Indonesia. Journal of Economics Research and Policy Studies, 5(1), 37–59. https://doi.org/10.53088/jerps.v5i1.1454

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Vol. 5 No. 1 (2025): Journal of Economics Research and Policy Studies

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Copyright (c) 2025 Zahra Ardya Rizwana, Meylia Adillah, Vidiyana Anggrayni, Tita Rosalia, Muhammad Zidane Alfandito, Edi Purwanto

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