MODERATING ROLE OF INVESTOR’S SENTIMENTS AND GOVERNMENT SUPPORT BETWEEN FINTECH ADOPTION AND FINANCIAL SUSTAINABILITY

Abstract

The study sought to empirically examine the relationship between Fintech adoption and sustainability, specifically focusing on the mediating role of green innovation and green finance. In addition, this study also examined the impact of government support and investor sentiments on the Saudi Arabia banking sector.  In order to analyse the relationship, data was gathered from 330 bank employees who work in financial institutions in Saudi Arabia. The sampling technique used was convenient sampling. The quantitative data was analysed using Smart PLS with PLS-SEM. The empirical research findings indicate that the adoption of Fintech has a favourable and noteworthy effect on sustainability, green innovations, and green finance. Similarly, green finance and green innovation have a positive and significant impact on sustainability. Put simply, the adoption of Fintech and the sustainability of Saudi Arabia's banking sector are influenced by green finance and green innovation. In addition, the results of the moderating effect also indicate a positive and significant influence between green finance, green innovation, and sustainability. This study's findings have made a valuable contribution to the existing literature. It stands out as the first study to test a mediated and moderated model, as far as the researcher knows. This research highlights the significance of government support and investor sentiments in achieving the sustainability of the banking sector for the overall sustainable development of the country.