The Impact of Fintech and Effective IT Governance on Green Institutional Activities in Saudi Arabia
DOI:
https://doi.org/10.14419/e4ppy480Published
05-10-2025Keywords:
FinTech; effectiveness of IT governance; Green Institutional Activities; SEM; Saudi ArabiaAbstract
There is an increase in environmental pressures and the digital transformation in the financial sector. This study examines how financial technology (FinTech) and the effectiveness of IT governance (EITG) influence green institution activities (GIA) within various financial institutions of Saudi Arabia. Addressing the critical gap in the emerging markets of Saudi Arabia, a quantitative approach was applied by using Partial Least Squares Structural Equation Modeling (PLS-SEM) on the data collected from 419 respondents within Saudi financial institutions. The findings of the study reveal that FinTech has a weak direct impact on GIA, while it significantly enhances GIA when mediated through effective IT governance, which demonstrates the need to align IT governance frameworks with the deployment of FinTech to enhance environmental performance. The findings highlight the critical role of digital financial innovation in enhancing the sustainability of financial sectors. Furthermore, the study offers key practical implications for financial institutions to integrate ESG objectives into their FinTech deployment strategies to foster a green digital ecosystem through governance and regulatory support. This study reinforces the strategic importance of integrating FinTech with institutional alignment to achieve insights into digital sustainability goals in line with the broader economic diversification agenda of Saudi Arabia, Vision 2030.
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