Fintech as a Catalyst for Sustainability: Empirical Evidence from Saudi Arabia

Abstract

This study explores the impact of financial technology (Fintech) on economic, social, and environmental sustainability in Saudi Arabia using survey-based empirical evidence. Using ordinal logistic regression, the results provide evidence of a positive and significant role of fintech adoption in each of the three areas of sustainability. On the economic front, fintech fosters financial inclusion, bank efficiency, and sector diversification. Socially, it promotes equality by providing greater access to financial services for vulnerable groups like women, youth, and SMEs, as well as creating new job opportunities. Environmentally, fintech reduces the environmental footprint of financial transactions and funnels capital into green initiatives, as outlined in Saudi Arabia’s Vision 2030 aspirations. The findings have important policy and managerial implications, suggesting that banks should include fintech as a strategic source of sustainable development, while policymakers must implement enabling regulation and incentives to encourage innovation. Cross-country analysis within the GCC and examination of moderating variables such as institutional quality and corporate governance could form part of future research.