FinTech and economic readiness: Institutional navigation amid climate risks

Ul-Durar, S; Bakkar, Y; Arshed, N; Naveed, S; Zhang, B

FinTech and economic readiness: Institutional navigation amid climate risks

Ul-Durar, S Bakkar, Y Arshed, N Naveed, S Zhang, B

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Publisher:: Elsevier
Publication Type:: Journal Article
Citation:: Research in International Business and Finance, 2025, 73, pp. 102543
Issue Date:: 2025-01

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Field	Value	Language
dc.contributor.author	Ul-Durar, S
dc.contributor.author	Bakkar, Y
dc.contributor.author	Arshed, N
dc.contributor.author	Naveed, S
dc.contributor.author	Zhang, B
dc.date.accessioned	2026-05-14T04:40:32Z
dc.date.available	2026-05-14T04:40:32Z
dc.date.issued	2025-01
dc.identifier.citation	Research in International Business and Finance, 2025, 73, pp. 102543
dc.identifier.issn	0275-5319
dc.identifier.uri	http://hdl.handle.net/10453/194983
dc.description.abstract	The current climate change is declared as a global boiling point by the UN businesses are facing increasing costs in maintaining their supply chains and production standards and are being urged to adapt and innovate for environmental transition. With the Industrial Revolution 4.0, FinTech has helped develop households and firms resilience against climate change. This study explores how businesses use FinTech to increase economic readiness to attract adaptation investments. This study hypothesizes that, at initial levels of businesses, FinTech adoptions are typically targeted to improve profitability while, as businesses mature, their FinTech adoption shows a transition towards sustainability. Following this, the role of institutions in regulating an ecosystem is to promote sustainable financial innovations. This study employs a 114-country panel data analysis to investigate these dynamics empirically. The estimation using Panel Quantile Regression showed that institutional quality can moderate the U-shaped FinTech adoption and business readiness relationship to expedite the transition under Sustainable Development Goal 9. This research sheds light on the impact of institutional quality on improving businesses ability to attract adaptation investments via promoting sustainable innovation. Outcomes offer valuable insights for policymakers, firms, and investors seeking to foster a more resilient economy.
dc.language	en
dc.publisher	Elsevier
dc.relation.ispartof	Research in International Business and Finance
dc.relation.isbasedon	10.1016/j.ribaf.2024.102543
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	1502 Banking, Finance and Investment
dc.subject.classification	Finance
dc.subject.classification	3502 Banking, finance and investment
dc.subject.classification	3801 Applied economics
dc.title	FinTech and economic readiness: Institutional navigation amid climate risks
dc.type	Journal Article
utslib.citation.volume	73
utslib.for	1502 Banking, Finance and Investment
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/Business School
pubs.organisational-group	University of Technology Sydney/Business School/Management Discipline
pubs.organisational-group	University of Technology Sydney/Business School/Business Related HDR Students
utslib.copyright.status	open_access	*
pubs.consider-herdc	true
dc.rights.license	This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND 4.0). To view a copy of this license, visit https://creativecommons.org/licenses/by-nc-nd/4.0/
dc.date.updated	2026-05-14T04:40:30Z
pubs.publication-status	Published
pubs.volume	73

Abstract:

The current climate change is declared as a global boiling point by the UN businesses are facing increasing costs in maintaining their supply chains and production standards and are being urged to adapt and innovate for environmental transition. With the Industrial Revolution 4.0, FinTech has helped develop households and firms resilience against climate change. This study explores how businesses use FinTech to increase economic readiness to attract adaptation investments. This study hypothesizes that, at initial levels of businesses, FinTech adoptions are typically targeted to improve profitability while, as businesses mature, their FinTech adoption shows a transition towards sustainability. Following this, the role of institutions in regulating an ecosystem is to promote sustainable financial innovations. This study employs a 114-country panel data analysis to investigate these dynamics empirically. The estimation using Panel Quantile Regression showed that institutional quality can moderate the U-shaped FinTech adoption and business readiness relationship to expedite the transition under Sustainable Development Goal 9. This research sheds light on the impact of institutional quality on improving businesses ability to attract adaptation investments via promoting sustainable innovation. Outcomes offer valuable insights for policymakers, firms, and investors seeking to foster a more resilient economy.

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http://hdl.handle.net/10453/194983