The Resource-Based View (RBV) offers a compelling lens through which to examine the strategic advantage of Fintech companies, especially in the realms of green finance and CSR. This theory posits that a firm’s competitive edge is derived from its unique resources and capabilities—particularly those that are valuable, rare, inimitable, and non-substitutable (Paladino, Widing, and Whitwell, 2015). Fintech firms, characterized by their innovative technological capabilities such as advanced data analytics, blockchain, AI, and machine learning, embody the essence of RBV (Seddon, 2014). These technological assets are not only valuable for their contribution to financial services efficiency but are also rare and difficult for competitors to replicate or substitute due to the specialized knowledge and innovation they require (Kero and Bogale, 2023). Fintech’s potential to leverage these technologies for promoting green finance and CSR initiatives presents a unique opportunity to enhance both financial performance and environmental sustainability (K. Dunbar et al., 2024; Phan et al., 2020; Vergara, Ferruz Agudo, 2021; Wang, Xiuping, and Zhang, 2021; Zhou and Wang, 2024b). Green finance encompasses financial products and services that support environmental objectives, such as investments in sustainable energy projects or the issuance of green bonds (Mete Feridun, 2023; Wan et al., 2023). By applying their technological prowess, Fintech companies can develop innovative financial products that appeal to the growing market of environmentally conscious investors, ensuring transparency, efficiency, and alignment with sustainability goals (Mete Feridun, 2023; Xie et al., 2023).

Moreover, Fintech firms can integrate CSR into their business models through the strategic use of their technological resources (Salah Mahdi, Bouaziz, and Boujelbène Abbes, 2023). This can include leveraging digital platforms to foster engagement with stakeholders on sustainability issues, utilizing AI to optimize operations for energy efficiency, or creating financial instruments that encourage sustainable consumer behaviors. Such initiatives not only help in reducing the environmental impact of financial services but also position Fintech companies as leaders in the transition towards a more sustainable economy. In conclusion, the RBV framework underscores the strategic importance of internal resources and capabilities in gaining a competitive advantage (Paladino et al., 2015; Seddon, 2014). For Fintech companies, this means harnessing their technological innovations not just for economic gain but to contribute meaningfully to green finance and CSR. This approach not only aligns with global sustainability efforts but also meets the increasing demand from consumers and investors for responsible financial practices, marking a significant step towards the future of sustainable finance (Cen and He, 2018). Thus, the RBV theory explains how Fintech adoption can serve as a valuable, rare, and difficult-to-imitate resource that enhances the environmental and financial performance of banking institutions, thereby providing them with a sustained competitive advantage. In this context, Fintech adoption enables banks to develop unique capabilities, such as GF and CSR practices, which play a critical role in driving sustainability and profitability. By focusing on the mediating effects of GF and CSR, the RBV framework helps to illustrate how these practices, when combined with Fintech, contribute to long-term success in both environmental and financial outcomes for banks in China.

Research hypothesis

Fintech and financial performance

From an RBV perspective, Fintech enhances financial performance by providing banking institutions with unique, valuable resources—such as advanced technological capabilities—that enable them to streamline operations, improve customer experiences, and create innovative financial products, thereby gaining a competitive advantage in the market. Recent literature reviews reveal divergent effects of Fintech on financial performance across various studies, indicating a complex and context-dependent relationship. For instance, research within the Indonesian market identified a negative correlation between the proliferation of Fintech firms and bank performance, with subsequent robustness checks affirming this finding (Phan et al., 2020). In contrast, analyses from Saudi Arabia’s financial sector reported a positive influence of Fintech on corporate performance, a conclusion reinforced through additional testing (Al-Matari et al., 2023). Similarly, investigations into the UK banking sector noted a beneficial impact of Fintech on banks’ performance, evidenced by enhanced net interest margins and yields on earning assets (Dasilas & Kara Nović, 2023). Moreover, a study across European banks observed that Fintech investments correlate positively with bank profitability, particularly among larger institutions (Chhaidar, Abdelhedi, and Abdelkafi, 2023). Another study underscored Fintech’s role in bolstering profitability, fostering financial innovation, and enhancing risk management within commercial banks (Wang et al., 2021). Shah, Lai, Tahir, et al. (2024) explore the impact of intellectual capital on financial performance in banks, emphasizing the moderating role of board attributes, particularly board size and independent directors, on return on equity. These varied outcomes underscore that the influence of Fintech on financial performance cannot be pigeonholeed as solely positive or negative; instead, it varies significantly based on regional market characteristics, the regulatory landscape, and individual financial institutions’ strategic approaches. This diversity of impacts suggests that the relationship between Fintech and financial performance in banking is intricate and highly contingent on specific contextual factors. Hence, the following hypothesis is posited for further investigation:

Hypothesis 1: FA exerts a significant influence on FINP.

Fintech and environmental sustainability performance

Drawing from existing scholarly work, there is compelling evidence indicating that Fintech exerts a considerable influence on ESP (Siddik, Rahman, et al., 2023). Defined by its reliance on innovative technological solutions to deliver financial services, Fintech is instrumental in enhancing resource efficiency and fostering the adoption of green finance practices (Dunbar et al., 2024; Liu and You, 2023; Qin et al., 2024; Tao et al., 2022). Pan et al. (2024) investigate how AI and DEA methods can enhance environmental performance in power plants, especially during crises. Zhang et al. (2024) find that Broadband China’s digital transformation, combined with environmental regulations, has a synergistic effect in reducing corporate carbon emissions. Wang et al. (2024) show that governance quality significantly impacts environmental protection, with extreme events moderating this effect. Additionally, Wang et al. (2024) reveal that AI adoption positively influences green innovation efficiency in Chinese energy companies, with long-term strategies enhancing its effectiveness. Furthermore, research has demonstrated that Fintech significantly bolsters green credit development, thereby facilitating carbon emission reductions and improving climate quality (Liu and You, 2023; Qin et al., 2024; Sadiq et al., 2024; Tao et al., 2022). Moreover, it is advocated that governments capitalize on Fintech capabilities to conduct thorough pre-loan assessments for green credit and to create environmental information-sharing platforms, which could enhance the effectiveness of environmental information disclosure policies (Liu and You, 2023; Tao et al., 2022). Fintech factors, including the widespread use of the internet and financial inclusion indexes, are shown to positively influence green economic activities, underscoring Fintech’s role in driving environmentally sustainable economic development (Awais et al., 2023). However, the reliance on natural resources poses challenges to environmental sustainability, prompting recommendations for implementing carbon taxation and environmental performance subsidies as countermeasures to encourage sustainable practices (Kai et al., 2024; Siddik, Rahman, et al., 2023; Wei, Yue, and Khan, 2024). Consequently, the synthesized evidence from these studies underscores Fintech’s critical impact on ESP, particularly through its support for green finance and carbon emission mitigation. Using the RBV theory, the impact of Fintech on environmental sustainability performance can be understood as Fintech providing unique, inimitable resources that enable banks to enhance GF initiatives, streamline environmental processes, and improve their sustainability practices, ultimately contributing to a competitive edge in achieving environmental goals. This leads to the formulation of the following hypothesis:

Hypothesis 2: FA significantly influences ESP.

Fintech and CSR

Based on the extensive literature review, the adoption of Fintech has a significant effect on CSR practices in the financial industry. Scholarly findings demonstrate a positive correlation between an entity’s engagement in Fintech and its CSR initiatives. This association is particularly pronounced in entities characterized by strong political affiliations, reduced agency costs, and superior internal governance mechanisms (Li et al., 2024). Additionally, Fintech is identified as playing a facilitative role in strengthening the bond between CSR and financial stability, enhancing the positive effects of CSR on the latter (Salah Mahdi et al., 2023). Furthermore, technology companies investing heavily in CSR reports experience increases in both revenue and profitability, underscoring the beneficial financial implications of CSR engagement (Okafor, Adusei, and Adeleye, 2021). In the banking sector, Fintech adoption is linked to significant improvements in return on equity and net interest margin profitability (Liu et al., 2021). Nevertheless, while existing research sheds light on the dynamic interplay between Fintech adoption and CSR practices, a gap persists concerning the explicit exploration of this relationship within specific financial contexts, such as China’s. Therefore, despite the insights offered on Fintech’s influence over CSR and financial performance, there remains a need to directly address the effect of Fintech adoption on CSR practices within the financial sector. From an RBV perspective, Fintech enhances CSR practices by providing banking institutions with unique technological capabilities that enable more efficient, transparent, and scalable sustainability initiatives, thereby creating a distinctive competitive advantage in meeting social and environmental goals. Consequently, we propose the following hypothesis:

Hypothesis 3: FA significantly influences CSR practices.

Fintech and green finance

Research highlights a strong link between Fintech and green finance, particularly in regions like Bangladesh (Guang-Wen & Siddik, 2023). Fintech plays a critical role in driving green investment and enhancing the sustainability of financial enterprises (Kwamie Dunbar et al., 2024; Vinaya & Goyal, 2023), especially through improved green credit allocation and reduced information asymmetry (Liu & You, 2023). Its impact on green economic activities underscores the need for policies that promote Fintech adoption to support greener economic growth (Awais et al., 2023). Fintech also aligns with the Sustainable Development Goals (SDGs), fostering initiatives like green bonds and crowdfunding for environmental projects (Taneja et al., 2023). The transformative power of Fintech in green banking is crucial for advancing financial sustainability, especially in supporting clean energy and climate action (Taneja et al., 2023). The COVID-19 pandemic has further demonstrated Fintech’s potential in driving sustainable green businesses (Calle-Nole et al., 2023; Taneja et al., 2023). However, the integration of Fintech in green finance requires careful regulatory oversight and consumer protection (Geetha & Biju, 2024; Vergara & Ferruz Agudo, 2021). Policymakers are encouraged to foster sustainability by promoting Fintech adoption and creating supportive policies for green finance. Thus, the following hypothesis is proposed:

Hypothesis 4: FA exerts a significant influence on green finance.

CSR, ESP, and FINP

The nexus between CSR and environmental performance has garnered considerable scholarly attention, particularly concerning how CSR initiatives, especially those focused on the environment, may bolster economic outcomes through the efficient deployment of resources (Tarabella and Burchi, 2013). The “sincere” hypothesis posits a natural alignment between proactive CSR endeavors and environmental stewardship, suggesting that such sincere environmental commitments result in enhanced corporate environmental performance through dedicated investments in environmental safeguarding (Liqi et al., 2023). Conversely, the “concealment” hypothesis argues that firms might leverage CSR as a facade to obscure actual environmental shortcomings, potentially leading to an adverse relationship between CSR engagements and environmental outcomes (Liqi et al., 2023). Furthermore, the role of sustainability committees in enhancing corporate sustainability practices has been widely discussed in recent studies. Shah et al. (2024) investigate the impact of SC on sustainability reporting and firm performance in Malaysian oil and gas companies, revealing that SC positively moderates the relationship between social and environmental SR and financial metrics, such as return on assets and Tobin’s q. Similarly, Hamad et al. (2024) explore the role of SC in enhancing the voluntary disclosure of SDGs in Malaysia, showing that companies with SCs provide more detailed and frequent SDG disclosures, especially regarding social goals. Moreover, Shah et al. (2025) examine the effect of ERM on green growth, finding that ERM practices positively influence GG by addressing ESG risks. Shahzad et al. (2023) discuss the effect of corporate governance on intellectual-capital efficiency, highlighting the impact of governance attributes on the efficiency of intellectual capital.

Moreover, CSR is increasingly recognized as a strategic avenue yielding competitive benefits, with implications suggesting a direct positive influence on financial metrics (Sledge, 2015). Notably, a study of European firms corroborates the enduring positive effect of CSR practices on financial performance (Houda Dziri and Jarboui, 2023). Further research within the Pakistani non-financial sector reinforces the positive financial ramifications of CSR investment, underscoring that firms with robust CSR commitments tend to exhibit superior financial performance (Rasheed et al., 2018). This discourse illuminates the intricate and sometimes contradictory dynamics between CSR and environmental performance, reflecting a spectrum of hypotheses regarding CSR’s environmental impact. Nonetheless, the preponderance of empirical research indicates a favorable influence of CSR practices on financial performance (Indriastuti and Chariri, 2021). Considering these discussions, this study proposes the following hypotheses for examination:

Hypothesis 5: CSR exerts a considerable influence on ESP.

Hypothesis 6: CSR significantly affects FINP.

Green finance, ESP, and FINP

The scholarly discourse on CSR has extensively explored its impact on organizational EP and Financial Performance. Despite this wealth of research, the exploration into the influence of green finance on the banking sector’s EP and FP remains comparatively nascent. Green finance, also known as sustainable or climate finance, emerged as a pivotal element of sustainable banking, especially following its spotlight during the 2016 G20 meeting in China, as highlighted by Akomea-Frimpong et al. (2021). This domain is credited with the potential to drive significant advancements in economic health and market development (Akter et al., 2018; Guang-Wen & Siddik, 2022; Hoque et al., 2019; Zheng G. W. et al., 2021). It adopts a comprehensive approach, aiming to augment the financial system’s role in promoting economic growth, social equity, and environmental sustainability (Zheng et al., 2021). Within the context of this study, green finance is delineated as the investment in eco-friendly initiatives that underpin overall organizational resilience, encapsulating both environmental and financial dimensions. Furthermore, the literature has demonstrated that green finance and technological innovation play critical roles in advancing sustainable development across various regions and sectors. Zhang et al. (2024) highlight that both green finance and high-tech innovation individually contribute positively to sustainable development in the Yangtze River Economic Belt. However, their combined impact is crucial for fostering balanced regional growth. Similarly, Zhang et al. (2024) examine how firms’ ESG performance influences skill premiums in China’s green finance reform pilot zone, demonstrating that improved ESG performance enhances skill premiums, especially in highly urbanized areas. Yu et al. (2022) explore the relationship between green finance and energy efficiency, revealing that financial investments positively impact EE in both developed and emerging economies. Wang et al. (2022) emphasize that green finance plays a significant role in achieving CSR goals in the banking sector, fostering environmental, social, and economic sustainability. Wang et al. (2024) show that governance quality significantly impacts environmental protection, with extreme events moderating this effect.

Moreover, empirical evidence suggests that green finance plays a crucial role in enhancing the EP of banking entities (Zhang et al., 2022), with its components spanning environmental, social, and economic factors, significantly influencing sustainability performance (Zheng et al., 2021). Yilmaz (2021) further substantiates that an organization’s sustainability performance markedly boosts its FP. Recent scholarly contributions have positioned green finance as a key determinant of an organization’s environmental stewardship and sustainability achievements (Chen et al., 2022; Guang-Wen & Siddik, 2022; Zhang et al., 2022). Moreover, Xu et al. (2020) demonstrated green finance’s contribution to enhancing corporate green performance, while Indriastuti & Chariri (2021) underscored its positive impact on firms’ FP and sustainability performance. Regarding the interplay between EP and FP, existing studies generally posit a positive correlation between these facets (Liu, 2020; Nakao et al., 2007; Salama, 2005; Sudha, 2020), albeit Wu et al. (2020) suggested that the relationship is indirect. Conversely, Muhammad et al. (2015) contended that EP does not significantly influence a firm’s FP, indicating a divergence in findings. This variance in empirical results underscores the complexity of the relationships between green finance, EP, and FP, suggesting that the nexus warrants further scholarly scrutiny. The ambiguous outcomes observed in prior studies point to an unresolved discourse, necessitating additional research to disentangle these relationships. Thus, the following hypotheses are proposed:

Hypothesis 7: GF significantly influences ESP.

Hypothesis 8: GF significantly influences FINP.

ESP and FINP

Existing research outlines the relationship between ESP and the FINP of banking institutions, revealing predominantly positive correlations between corporate environmental performance (CEP) and corporate financial performance (CFP) (Khattak, 2021; Laguir et al., 2018; Munjal & Sharma, 2019; Weber, 2017). These studies collectively suggest a mutually reinforcing dynamic, wherein high levels of CFP are associated with superior CEP, hinting at a sophisticated, bidirectional interplay (Laguir et al., 2018). Specifically, investigations within the Chinese banking sector have documented a notable enhancement in environmental and social performance, underpinned by a bidirectional causality between financial and sustainability performance (Weber, 2017). This body of evidence posits a symbiotic relationship between corporate sustainability and financial outcomes, suggesting that strategic investments in sustainability initiatives can strengthen financial prosperity without compromising returns (Weber, 2017). While certain analyses indicate a direct, positive linkage between exemplary environmental performance and financial success (Earnhart, 2018), there are instances where a negative relationship is observed (Earnhart, 2018). Nonetheless, the overarching narrative within the literature leans towards a favorable influence of sound environmental performance on financial achievement (Earnhart, 2018). Consequently, the synthesis of these studies furnishes empirical support for a beneficial association between ESP and FINP among banking entities, underscoring significant implications for policy formulation and corporate strategy. Despite the prevailing consensus, these insights also underscore the necessity for continued inquiry into the dynamics governing the ESP-FINP nexus (Weber, 2017). Considering this, the study posits the following hypothesis for examination:

Hypothesis 9: ESP significantly influences FINP.

Mediating effect of CSR practices

Numerous studies have established a positive correlation between CSR and financial performance, illustrating that CSR initiatives contribute significantly and continuously to a company’s financial health (Coelho et al., 2023; H. Dziri and Jarboui, 2023; Edwards, 2014). Specifically, the effectiveness of CSR committees and investment in diversity, labor rights, and worker safety are highlighted as beneficial for enhancing firm value (Lin et al., 2019). Although research on the direct impact of Fintech on environmental performance remains scant, existing studies suggest Fintech plays a crucial role in enhancing green credit development by mitigating information asymmetry and improving the efficiency of green credit allocation (Liu and You, 2023). Further, Fintech is recognized for its significant contribution to the environmental sustainability performance of banks (Guang-Wen and Siddik, 2023; Siddik et al., 2023) and Small and Medium Enterprises (SMEs) (Abu Bakkar Siddik et al., 2023; Tian et al., 2023). Despite the absence of direct evidence elucidating CSR’s mediating role between Fintech adoption and environmental/financial performance, the documented positive effects of CSR on financial outcomes, alongside Fintech’s potential to boost environmental performance, imply a possible intermediary function. This gap in the literature indicates a need for further investigation into how CSR might bridge the influence of Fintech on both environmental and financial performance. Drawing on the existing body of research, we hypothesize that CSR could serve as a mediating factor in the dynamics between Fintech adoption, environmental sustainability, and financial performance, leading to the proposal of the following hypotheses for exploration:

Hypothesis 10: CSR acts as a mediator between FA and ESP.

Hypothesis 11: CSR serves as a mediator between FA and FINP.

Mediating effect of green finance

The literature review reveals significant insights into the dynamic interplay among Fintech, green finance, and their collective impact on environmental and financial performance. Fintech has been shown to notably advance green credit development by mitigating information asymmetry and enhancing green credit allocation efficiency (Liu and You, 2023). It also positively impacts the green environmental index through mechanisms such as financial breadth, depth, and digitalization (Qin et al., 2024), directly influencing green finance (Guang-Wen and Siddik, 2023) and ESP (Guang-Wen and Siddik, 2023; Siddik et al., 2023). Fintech’s role extends to reducing carbon emissions and fostering climate quality, with green finance playing a pivotal role in enhancing climate sustainability (Sadiq et al., 2024). Furthermore, Fintech aids in discerning and mitigating greenwashing practices among firms, thereby influencing the provision and access to financial services (Zhou and Wang, 2024).

Moreover, Fintech is identified as a significant deterrent to corporate greenwashing, with financial constraints further amplifying this effect (Xie et al., 2023). Contrarily, some evidence suggests a potential diversion of resources from green finance due to Fintech, hinting at complex implications for financial transparency (Feridun, 2023). Despite these findings, the literature lacks a direct examination of green finance’s mediating role between Fintech and both environmental and financial outcomes. While existing studies shed light on Fintech and green finance’s individual impacts, the potential mediating influence of green finance in bridging Fintech with environmental and financial performance remains unexplored. Hence, to address this gap, we propose the following hypotheses:

Hypothesis 12: GF acts as a mediator between FA and ESP.

Hypothesis 13: GF serves as a mediator between FA and FINP.

Conceptual framework

The study’s conceptual framework is designed within the framework of RBV theory, and illustrated in the accompanying Fig. 1, positions FA as the independent variable that influences ESP and FINP, which are the dependent variables. GF and CSR are introduced as mediators within this framework, bridging the relationship between FA and the outcomes of interest, ESP and FINP.