Fintech Adoption and its Impact on Sustainability: Risk Benefit Analysis of an Emerging Economy

  • Naila Sadiq Department of Accounting and Finance, Kinnaird College for Women, Lahore, Pakistan
  • Ummul Baneen Department of Accounting and Finance, Kinnaird College for Women, Lahore, Pakistan
  • Syeda Fizza Abbas Department of Accounting and Finance, Kinnaird College for Women, Lahore, Pakistan
Keywords: financial technology, fintech adoption, risk benefit, sustainability, technology adoption


Abstract Views: 0

This study aims to analyze how the six variables, such as perceived legal risk, perceived performance risk, perceived cyber risk, perceived financial risk, perceived economic benefit, ease of use, and monetary benefit affects the adoption of financial technology, with the moderating effect of gender and education. Additionally, it explores the impact of Fintech adoption on economic, environmental, and social sustainability of Pakistan. For this purpose, a quantitative research approach has been employed by using a well-designed questionnaire. Moreover, the sample size of 312 was considered and the responses were collected through Google forms. The data collected was then analyzed using SPSS. The study’s findings revealed that the perception of the advantages of using fintech has a positive impact on its adoption. The perception of risk has a negative impact, however, this impact is much lesser than the benefits. Risk perception negatively impacts sustainability while benefits perception impacts sustainability positively. Thus, this study can provide policymakers in emerging economies with valuable insights into the perceived risks and benefits of Fintech adoption for sustainable development. This study gives insight to the practitioners and researchers on how perceived risk and benefit can impact Fintech adoption and how its adoption, in turn, impacts sustainability. The research can contribute to informed policy decisions, support the development of robust regulatory frameworks, advance knowledge, and promote inclusive growth in emerging economies.


Download data is not yet available.


Abdul-Rahim, R., Bohari, S. A., Aman, A., & Awang, Z. (2022). Benefit–risk perceptions of fintech adoption for sustainability from bank consumers’ perspective: The moderating role of fear of COVID-19. Sustainability, 14(14), Article e8357.

Aggarwal, M., Nayak, K. M., & Bhatt, V. (2023). Examining the factors influencing fintech adoption behaviour of gen Y in India. Cogent Economics & Finance, 11(1), Article e2197699.

Ahmad, K., & Yahaya, M. H. (2023). Islamic social financing and efficient zakat distribution: Impact of fintech adoption among the asnaf in Malaysia. Journal of Islamic Marketing, 14(9), 2253–2284.

Ali, M., Raza, S. A., Puah, C., & Amin, H. (2021). How perceived risk, benefit and trust determine user Fintech adoption: A new dimension for Islamic finance. Foresight, 23(4), 403–420.

Anshari, M., Almunawar, M. N., & Masri, M. (2020). Financial technology and disruptive innovation in business: Concept and application. International Journal of Asian Business and Information Management, 11(4), 29–43.

Antwi-Boampong, A., Boison, D. K., Agbedoawu, J., Doumbia, M. O., & Blay, A. (2022). Factors affecting port users’ behavioral intentions to adopt financial technology (fintech) in ports in Sub-Saharan Africa: A case of ports in Ghana. FinTech, 1(4), 362–375.

Asif, M., Sarwar, F., & Lodhi, R. N. (2023). Future and current research directions of fintech: A bibliometric analysis. Audit and Accounting Review, 3(1) 19–51.

Azeez, A. N., Akhtar, S. M., & Banu, N. M. (2021). Role of education on financial literacy of Rural India. Asian Journal of Research in Banking and Finance, 11(5), 1–11.

Bartodziej, C. J., & Bartodziej, C. J. (2017). The concept industry 4.0 (pp. 27–50). Springer Fachmedien Wiesbaden.

Cambaza, E. (2023). The role of fintech in sustainable healthcare development in Sub-Saharan Africa: A narrative review. FinTech, 2(3), 444–460.

Chang, L., Zhang, Q., & Liu, H. (2022). Digital finance innovation in green manufacturing: A bibliometric approach. Environmental Science and Pollution Research, 30, 61340–61368.

Chen, X., Chen, W., & Lu, K. (2023). Does an imbalance in the population gender ratio affect FinTech innovation? Technological Forecasting and Social Change, 188, Article e122164.

Chen, Y. (2018). Fintech and sustainable development. Journal of Sustainable Finance & Investment, 8(3), 218–232.

Christensen, C. M., McDonald, R., Altman, E. J., & Palmer, J. E. (2018). Disruptive innovation: An intellectual history and directions for future research. Journal of Management Studies, 55(7), 1043–1078.

Danladi, S., Prasad, M. S. V., Modibbo, U. M., Ahmadi, S. A., & Ghasemi, P. (2023). Attaining sustainable development goals through financial inclusion: Exploring collaborative approaches to fintech adoption in developing economies. Sustainability, 15(17), Article e13039.

Daud, S. N. M., Khalid, A., & Azman-Saini, W. N. W. (2022). FinTech and financial stability: Threat or opportunity? Finance Research Letters, 47, Article e102667.

Do, N., Tham, J., Azam, S., & Khatibia, A. (2020). Analysis of customer behavioral intentions towards mobile payment: Cambodian consumer’s perspective. Accounting, 6(7), 1391–1402.

Ferdaous, D. J., & Rahman, M. N. (2021). Banking goes digital: Unearthing the adoption of fintech by Bangladeshi households. Journal of Innovation in Business Studies, 1, 7–42.

Feyen, E., Frost, J., Gambacorta, L., Natarajan, H., & Saal, M. (2021). Fintech and the digital transformation of financial services: implications for market structure and public policy (Bank of International Settlements Working Paper No. 117).

Goswami, S., Sharma, R. B., & Chouhan, V. (2022). Impact of financial technology (Fintech) on financial inclusion (FI) in Rural India. Universal Journal of Accounting and Finance, 10(2), 483–97.

Granić, A., & Marangunić, N. (2019). Technology acceptance model in educational context: A systematic literature review. British Journal of Educational Technology, 50(5), 2572–2593.

Guang-Wen, Z., & Siddik, A. B. (2023). The effect of fintech adoption on green finance and environmental performance of banking institutions during the COVID-19 pandemic: The role of green innovation. Environmental Science and Pollution Research, 30(10), 25959–25971.

Haddad, C. & L. Hornuf (2019). The emergence of the global fintech market: Economic and technological determinants. Small Business Economics, 53(1), 81–105.

Al-Hammadi, T. & Nobanee, H. (2019). FinTech and sustainability: A mini-review. SSRN.

He, X., Li, Y., & Li, H. (2020). Consumer adoption of fintech services in China: Perceived risks and their mitigation strategies. Journal of Business Research, 108, 290–299.

Hoang, T. G., Nguyenet, G., & Le, D. (2022). Developments in financial technologies for achieving the sustainable development goals (SDGs): FinTech and SDGs. In U. Akkucuk (Ed.), Disruptive technologies and eco-innovation for sustainable development (pp. 1–19). IGI Global.

Horn, M., Oehler, A., & Wendt, S. (2020). Fintech for consumers and retail investors: Opportunities and risks of digital payment and investment services. In T. Walker, D. Gramlich, M. Bitar & P. Fardnia (Eds.), Ecological, Societal, and Technological Risks and the Financial Sector (pp. 309–327). Springer International Publishing.

Irimia-Diéguez, A., Velicia-Martín, F., & Aguayo-Camacho, M. (2023). Predicting fintech innovation adoption: The mediator role of social norms and attitudes. Financial Innovation, 9(1), 1–23. e36.

Jain, N., & Raman, T. V. (2023). The interplay of perceived risk, perceive benefit and generation cohort in digital finance adoption. EuroMed Journal of Business, 18(3), 359–379.

Jin, C. C., Seong, L. C., & Khin, A. A. (2019). Factors affecting the consumer acceptance towards fintech products and services in Malaysia. International Journal of Asian Social Science, 9(1), 59–65.

Khan, H. U. R., Zaman, B., Zaman, K., Nassani, A. A., Haffar, M., & Muneer, G. (2022). The impact of carbon pricing, climate financing, and financial literacy on COVID-19 cases: Go-for-green healthcare policies. Environmental Science and Pollution Research, 29(24), 35884–35896.

Kumari, A., & Devi, N. C. (2022). The impact of fintech and blockchain technologies on banking and financial services. Technology Innovation Management Review, 12(1/2). Article e22010204.

Lau, H. C., Li, Y., & Wong, G. K. (2020). The impact of fintech on sustainable finance. Journal of Cleaner Production, 260, Article e121102.

Leong, K., & Sung, A. (2018). FinTech (Financial Technology): What is it and how to use technologies to create business value in fintech way? International Journal of Innovation, Management and Technology, 9(2), 74–78.

Lukonga, M. I. (2018). Fintech, inclusive growth and cyber risks: Focus on the MENAP and CCA regions. International Monetary Fund.

Mathur, H. P. (2022). Conceptual development of factors driving fintech adoption by farmers. Purushartha: A Journal of Management, Ethics and Spirituality, 15(1), 39–50.

Maxwell, S. E., Cole, D. A., & Mitchell, M. A. (2011). Bias in cross-sectional analyses of longitudinal mediation: Partial and complete mediation under an autoregressive model. Multivariate Behavioral Research, 46(5), 816–841.

Meiling, L., Yahya, F., Waqas, M., Shaohua, Z., Ali, S. A., & Hania, A. (2021). Boosting sustainability in healthcare sector through fintech: Analyzing the moderating role of financial and ICT development. Inquiry: The Journal of Health Care Organization, Provision, and Financing. 58, 1–11.

Murinde, V., Rizopoulos, E., & Zachariadis, M. (2022). The impact of the FinTech revolution on the future of banking: Opportunities and risks. International Review of Financial Analysis, 81, Article e102103.

Museba, T. J., Ranganai, E., & Gianfrate, G. (2021). Customer perception of adoption and use of digital financial services and mobile money services in Uganda. Journal of Enterprising Communities: People and Places in the Global Economy, 15(2), 177–203.

Nakamura, M., Matsuo, M., & Kajiwara, K. (2019). Fintech adoption: The impact of legal and performance risks. Journal of Business Research, 98, 365–378.

Nangin, M. A., Barus, I. R. G., & Wahyoedi, S. (2020). The effects of perceived ease of use, security, and promotion on trust and its implications on fintech adoption. Journal of Consumer Sciences, 5(2), 124–138.

Al-Nawayseh, M. K. (2020). Fintech in COVID-19 and beyond: What factors are affecting customers’ choice of fintech applications? Journal of Open Innovation: Technology, Market, and Complexity, 6(4), Article e153.

Nurlaily, F., Aini, E. K., & Asmoro, P. S. (2021). Understanding the FinTech continuance intention of Indonesian users: The moderating effect of gender. Business: Theory and Practice, 22(2), 290–298.

Okazaki, S., & Mendez, F. (2013). Exploring convenience in mobile commerce: Moderating effects of gender. Computers in Human Behavior, 29(3), 1234–1242.

Razzaque, A., Cummings, R. T., Karolak, M., & Hamdan, A. (2020). The propensity to use FinTech: Input from bankers in the Kingdom of Bahrain. Journal of Information & Knowledge Management, 19(1), Article e2040025.

Ryu, H. S., & Ko, K. S. (2020). Sustainable development of Fintech: Focused on uncertainty and perceived quality issues. Sustainability, 12(18), Article e7669.

Ryu, H.-S. (2018). What makes users willing or hesitant to use Fintech? The moderating effect of user type. Industrial Management & Data Systems, 118(3), 541–569.

Sakhare, C. A., Somani, N. N., Patel, B. L., Khorgade, S. N., & Parchake, S. (2023). What drives FinTech adoption? A study on perception, adoption, and constraints of FinTech services. European Economic Letters, 13(3), 1216–1230.

Schueffel, P. (2020). The fintech book: The financial technology handbook for investors, entrepreneurs, and visionaries. John Wiley & Sons.

Shang, X., & Niu, H. (2023). Does the digital transformation of banks affect green credit? Finance Research Letters, 58(B), Article e104394.

Singh, S., Sahni, M. M., & Kovid, R. K. (2020). What drives FinTech adoption? A multi-method evaluation using an adapted technology acceptance model. Management Decision, 58(8), 1675–1697.

Sjöberg, L. and J. Fromm (2001). Information technology risks as seen by the public. Risk Analysis, 21(3), 427–442.

Suprun, A., Petrishina, T., & Vasylchuk, I. (2020, May 20–22). Competition and cooperation between fintech companies and traditional financial institutions (Conference Session). The International Conference on Sustainable Futures: Environmental, Technological, Social and Economic Matters (ICSF 2020), Kryvyi Rih, Ukraine.

Taylor, H., (2023, May 11). How fintech is helping build a more sustainable financial future. Cryptomathic.,in%20attaining%20global%20environmental%20objectives

Tripathi, S., & Rajeev, M. (2023). Gender-inclusive development through fintech: Studying gender-based digital financial inclusion in a cross-country setting. Sustainability, 15(13), Article e10253.

Velenturf, A. P. & Purnell, P. (2021). Principles for a sustainable circular economy. Sustainable Production and Consumption, 27, 1437–1457.

Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly, 27(3), 425–478.

Xie, J., Ye, L., Huang, W., & Ye, M. (2021). Understanding fintech platform adoption: Impacts of perceived value and perceived risk. Journal of Theoretical and Applied Electronic Commerce Research, 16(5), 1893–1911.

Yan, C., Siddik, A. B., Yong, L., Dong, Q., Zheng, G-W., Rahman, M. N., (2022). A two-staged SEM-artificial neural network approach to analyze the impact of FinTech adoption on the sustainability performance of banking firms: The mediating effect of green finance and innovation. Systems, 10(5), Article e 148.

Zamora-Polo, F., Sánchez-Martín, J., Corrales-Serrano, M., & Espejo-Antúnez, L. (2019). What do university students know about sustainable development goals? A realistic approach to the reception of this UN program amongst the youth population. Sustainability, 11(13), Article e3533.

Zhang, Y., Liu, C., Cao, Y., & Yang, Z. (2021). The effect of fintech adoption on sustainability: Evidence from China. Sustainability, 13(5), Article e2925.

Zhou, T. (2012). Understanding users’ initial trust in mobile banking: An elaboration likelihood perspective. Computers in Human Behavior, 28(4), 1518–1525.

Ziemba, E. (2019). Synthetic indexes for a sustainable information society: Measuring ICT adoption and sustainability in Polish government units. In E. Ziemba (Ed.), Information technology for management: emerging research and applications. Springer.

How to Cite
Sadiq, N., Baneen, U., & Abbas, S. F. (2023). Fintech Adoption and its Impact on Sustainability: Risk Benefit Analysis of an Emerging Economy. Audit and Accounting Review, 3(2), 95-126.