Green Finance and Fintech Adoption Services among Croatian Online Users: How Digital Transformation and Digital Awareness Increase Banking Sustainability

Abstract

This study delves into the dynamic interplay between green finance, Fintech adoption, digital awareness, and digital transformation in the Croatian banking industry. Amidst the emerging trend of sustainable banking practices and technological advancements, this research aims to examine the influence of green finance on Fintech adoption and banking sustainability. Employing a quantitative research design, this study gathered data through a survey questionnaire of 304 participants, comprising customers and employees of various banks in Croatia. The respondents’ insights were analyzed using IBM SPSS for the demographic analysis and SmartPLS for structural equation modeling (SEM). The results reveal a significant impact of green finance on Fintech adoption and digital awareness. Additionally, digital awareness significantly influenced Fintech adoption. However, the direct effect of digital transformation on Fintech adoption was not significant. This study also confirmed the significant influence of Fintech adoption on banking sustainability and identified the mediating role of digital awareness between green finance and Fintech adoption. This research contributes novel insights into the relationship between sustainable finance initiatives and digital banking trends. It underscores the need for increased digital awareness and the integration of green finance principles in the banking sector. These findings offer practical implications for banks in Croatia, suggesting a strategic focus on digital awareness programs, leveraging Fintech for enhanced customer experience, and fostering collaboration for a conducive Fintech environment.