In recent years, the global banking industry has been undergoing a seismic shift, driven by the convergence of financial technology (Fintech), corporate social responsibility (CSR), and green finance (GF). A groundbreaking study conducted in China has provided new insights into how these elements interact to shape both environmental and financial outcomes within the banking sector. Employing a sophisticated multi-method analytical approach, this research unpacks the dynamics that underpin sustainable banking transformation, highlighting Fintech’s pivotal role in this evolving landscape.
The study leveraged Structural Equation Modeling (SEM) alongside Necessary Condition Analysis (NCA) to unravel complex relationships among Fintech adoption (FA), CSR initiatives, green finance strategies, and their combined effects on environmental sustainability performance (ESP) and financial performance (FINP). SEM allowed researchers to test direct and indirect pathways within the proposed conceptual framework, elucidating the mediating roles that CSR and GF play in the interface between Fintech and organizational outcomes. Meanwhile, NCA was instrumental in identifying the critical thresholds for FA and ESP as indispensable precursors for boosting financial returns.
Results demonstrated unequivocally that Fintech adoption exerts a direct and positive influence on environmental sustainability performance, underscoring how digital innovations facilitate greener operations and eco-friendly financial products. Similarly, Fintech also demonstrated a robust positive effect on corporate social responsibility and green finance, suggesting that technological advancements provide the scaffolding necessary for banks to enhance their social and environmental commitments. These findings bring to light the multifaceted benefits that digital transformation can deliver beyond mere operational efficiency gains.
Interestingly, the anticipated direct impact of CSR on financial performance was not supported by the data. This counterintuitive discovery signals that CSR’s effects on profitability may not be immediate or straightforward, but instead occur through more nuanced, indirect mechanisms. The study proposes that further research should explore these indirect pathways—potentially involving customer loyalty, brand equity, or regulatory advantages—that mediate the CSR-financial performance link. This calls for a more granular understanding of how socially responsible business practices translate into tangible economic benefits over time.
Green finance was shown to mediate the relationship between Fintech adoption and environmental sustainability, reinforcing the notion that environmentally-oriented financial products and services act as amplifiers of digital innovation’s positive impact on sustainability. This mediation suggests that banks’ strategic investments in green financial instruments are integral in converting Fintech’s technological capabilities into measurable environmental improvements. Notably, this dynamic interplay enhances banks’ reputations as stewards of sustainable development while aligning economic incentives with ecological imperatives.
The application of NCA brought crucial insights into the role of thresholds and necessary conditions for change. The analysis underscored that without a foundational level of Fintech integration and a baseline environmental sustainability performance, improvements in financial outcomes are unlikely to materialize. This finding challenges traditional linear models by emphasizing that incremental progress in Fintech and sustainability may be insufficient unless certain minimum criteria are met. Such knowledge empowers decision-makers to prioritize investment and implementation strategies where they matter most.
Grounding their work in the resource-based view (RBV) of the firm, the researchers highlight Fintech’s strategic importance as a unique, valuable, and inimitable resource that confers competitive advantage. This theoretical framing places digital technologies not merely as tools but as core assets that enable superior performance in both sustainability and finance. Ultimately, the integration of Fintech with CSR and green finance reflects a holistic approach to value creation that is consonant with the paradigm of shared value and stakeholder capitalism.
Moreover, the study’s multi-method approach exemplifies the methodological rigor needed to dissect the complexities of contemporary banking ecosystems. By combining SEM and NCA, the research moves beyond simple correlation analysis to capture conditional and mediating effects with precision. This methodological innovation paves the way for future empirical investigations into how other organizational capabilities and external factors influence the banking sector’s sustainable development trajectory.
The findings hold profound implications for regulators, policymakers, and banking executives alike. As pressures mount to reconcile profitability with environmental stewardship, the demonstrated role of Fintech as a catalyst offers a pathway to align technology investments with sustainability goals. Banks should consider investing strategically in Fintech innovations that facilitate CSR and green finance programs to harness synergistic effects. This integrated approach promises to foster long-term resilience in an era marked by environmental uncertainty and shifting stakeholder expectations.
Furthermore, these insights contribute to the global discourse on sustainable finance by emphasizing the interconnectedness of technology adoption and socially responsible business practices. The Chinese banking sector’s experience serves as a valuable case study for emerging and developed markets striving to embed sustainability within core financial operations. By illuminating how Fintech enhances both green finance capabilities and CSR engagement, the research affirms that technological progress need not be at odds with social and environmental commitments.
Notably, the rejection of certain hypotheses regarding CSR’s direct financial impact invites a re-examination of the timelines and mechanisms through which sustainability investments yield returns. Practitioners should recognize that CSR initiatives may represent long-term investments requiring complementary strategies—such as enhanced customer engagement or innovation in green products—to translate into financial gains. This nuanced understanding encourages a more patient and strategic outlook on sustainability-oriented business transformation.
The role of green finance emerged as a critical bridge, translating Fintech-enabled capabilities into measurable environmental benefits. This reinforces growing recognition within the banking industry that environmental considerations are not peripheral but integral to financial innovation. Green bonds, sustainable lending frameworks, and carbon footprint tracking are examples of green finance tools that, when powered by Fintech’s data analytics and automation, can significantly boost performance metrics related to environmental sustainability.
In sum, this seminal research advances the frontier of knowledge by dissecting the multifarious linkages among Fintech, CSR, green finance, and bank performance. It paints a compelling picture of how digital revolution in banking can drive sustainable development, provided that organizations adopt a strategic, integrated approach that leverages technology alongside responsible and green business practices. This multidimensional perspective offers a robust blueprint for banks worldwide navigating the complex challenges of the twenty-first century.
Looking ahead, the research opens promising avenues for further inquiry into how evolving technological trends—including artificial intelligence, blockchain, and big data analytics—can deepen banks’ capacities for sustainability and financial excellence. Understanding the complex feedback loops among these factors remains an essential task for scholars and practitioners committed to advancing responsible finance. The study’s multifaceted approach sets a standard for future work aiming to unravel the intricate tapestry linking innovation, responsibility, and profitability.
Ultimately, this pioneering investigation underscores that the future of banking lies in the harmonious integration of Fintech, CSR, and green finance—an integration that not only enhances economic value but also contributes to the broader societal goal of environmental sustainability. As banks worldwide embrace this integrated model, they position themselves as leaders in the creation of a more equitable and sustainable financial system. The insights offered by this Chinese case study will undoubtedly resonate beyond its borders, inspiring global efforts to harness the power of technology for sustainable banking transformation.
Subject of Research: The study investigates the impacts of Fintech adoption on environmental sustainability and financial performance in the Chinese banking sector, with a focus on the mediating roles of corporate social responsibility and green finance.
Article Title: Integrating Fintech, CSR, and green finance: impacts on financial and environmental performance in China
Article References:
Yuan, X. Integrating Fintech, CSR, and green finance: impacts on financial and environmental performance in China.
Humanit Soc Sci Commun 12, 1072 (2025). https://doi.org/10.1057/s41599-025-05064-8
Image Credits: AI Generated
