Green Finance and FinTech Adoption: Examining the Mediating Effects of Financial Literacy and Perceived Financial Benefit in Sustainable Banking

Abstract

This study explores the influence of green finance on FinTech adoption in the context of sustainable banking, with a particular focus on the mediating roles of perceived financial benefit and financial literacy. Amid the global push toward environmental sustainability and the rapid proliferation of financial technology, the integration of these domains has gained scholarly and practical relevance. However, limited research exists on how cognitive and motivational factors influence the uptake of green FinTech solutions, especially in emerging economies. Grounded in the Technology Acceptance Model (TAM), this study aims to develop and empirically test a mediation model that examines whether perceived financial benefits and financial literacy mediate the relationship between green finance and FinTech adoption among banking professionals in Pakistan. A quantitative, cross-sectional survey design was employed, gathering data from 376 banking professionals across commercial and Islamic banks in Pakistan. Structural Equation Modeling (SEM) using SmartPLS 4 was applied to test the direct and indirect relationships among constructs. The findings reveal that green finance has a significant positive effect on FinTech adoption. Moreover, both perceived financial benefit and financial literacy significantly mediate this relationship, with perceived financial benefit demonstrating a stronger mediating effect. These results highlight the importance of addressing both the cognitive capacity and motivational orientation of users to enhance green FinTech adoption. The study contributes to theory by extending TAM through the integration of dual mediators and provides practical insights for policymakers, financial institutions, and FinTech developers.