Risks, Sustainability, and Interconnection between FinTech Adoption and Traditional Investments
DOI:
https://doi.org/10.55578/jift.2606.006Keywords:
FinTech adoption, sustainable banking, banking risks, financial stability, traditional investments, digital transformation, financial interconnectednessAbstract
FinTech has rapidly transformed the global banking sector by redefining financial intermediation, investment systems and risk management practices. This paper explores the association between FinTech adoption, banking risks, sustainability performance and conventional investments in an increasingly interconnected financial environment. The study investigates the effect of digital financial innovations, including artificial intelligence, blockchain technology, cloud computing, digital payment systems, and big data analytics, on banking sustainability, financial stability, and investment interconnectedness.
The methodology is qualitative and conceptual, and it is based on a systematic review of recent academic studies published between 2020 and early 2026. The study synthesizes the existing theoretical and empirical literature on FinTech adoption, operational and cybersecurity risks, sustainable banking practices, ESG-oriented finance, and financial interconnectedness. In this paper, rather than empirically estimating these relationships, an integrated conceptual framework is developed to explain the dynamic linkages between FinTech adoption, banking sustainability, risk exposure and traditional investment systems.
The literature reviewed in this study indicates that the adoption of FinTech can have a positive impact on banking efficiency, operational flexibility, financial inclusion, customer experience, and sustainability performance through digital transformation and technological innovation. FinTech further enables ESG-oriented financial practices and the modernization of traditional investment systems. But growing reliance on digital financial infrastructures may also give rise to increasing operational, cybersecurity, regulatory and systemic risks at the same time. Moreover, stronger links between digital financial assets and traditional investment markets could increase financial contagion and market volatility in times of economic uncertainty.
This study contributes to the literature by offering a comprehensive conceptual framework that encompasses FinTech adoption, banking sustainability, financial risks, and investment interconnectedness in the contemporary financial systems. It also offers potential directions for empirical research and measurable indicators for future quantitative research. The findings are of significant interest to policymakers, financial institutions, regulators and investors who want to strike a balance between technological innovation, financial resilience and sustainable economic growth.
References
[1] Rizvi, S. A. R. (2025). Finance, management, and society in an era of transformation: A research agenda for the future. International Journal of Islamic and Middle Eastern Finance and Management, 18(6), 1241–1248. https://www.emerald.com/imefm/article/18/6/1241/1307635
[2] Danladi, S., Prasad, M. S. V., Modibbo, U. M., Ahmadi, S. A., & Alhassan, A. (2023). Attaining sustainable development goals through financial inclusion: Exploring collaborative approaches to FinTech adoption in developing economies. Sustainability, 15(17), 13039. https://doi.org/10.3390/su151713039
[3] Hidayat-ur-Rehman, M., & Hossain, M. (2025). Digital transformation and sustainable banking performance: The moderating role of FinTech adoption. Business Strategy and Development, 8(1), 33-49. https://doi.org/10.1002/bsd2.401
[4] Campanella, F., D'Angelo, E., & Del Giudice, M. (2023). FinTech and sustainable finance: Emerging trends and future perspectives. Technological Forecasting and Social Change, 190, 122386. https://doi.org/10.1016/j.techfore.2023.122386
[5] Habib, A. M. (2025). Fintech and sustainability: Perspectives from emerging markets. In Trends and Challenges of Electronic Finance in Emerging Economies (pp. xx–xx). Springer. https://doi.org/10.1007/978-981-96-3304-3_7
[6] Dhar, B. K., Roshid, M. M., Dissanayake, S., & Chawla, U. (2025). Leveraging FinTech and GreenTech for long-term sustainability in South Asia. Finance Research Letters, 67, 105821. https://doi.org/10.1016/j.frl.2025.105821
[7] Bouriche, A., Hamli, A., & Bouriche, S. (2025). Balancing innovation and risk: Regulatory frameworks for sustainable FinTech growth. European Journal of Business and Governance Research. https://eugb.ge/index.php/111/article/view/462
[8] Elsaid, A. (2023). The impact of FinTech on traditional banking models. International Journal of Financial Studies, 11(2), 78-92. https://doi.org/10.3390/ijfs11020078
[9] Rahman, M. S., Moral, I. H., Kaium, M. A., & Sarker, G. A. (2024). FinTech in sustainable banking: An integrated systematic literature review and future research agenda with a TCCM framework. Green Finance, 6(1), 102-128. https://doi.org/10.3934/GF.2024005
[10] Offiong, U. P., Szopik-Depczyńska, K., & colleagues. (2025). FinTech innovations for sustainable development: A comprehensive literature review and future directions. Sustainable Development. https://doi.org/10.1002/sd.70068
[11] Galeone, G., Ferri, G., & Giannetti, C. (2024). ESG investments and FinTech innovation: Implications for sustainable finance. Sustainability, 16(5), 2201. https://doi.org/10.3390/su16052201
[12] Kanojia, S., Kaur, S., & Bhavya. (2024). Business sustainability in the era of FinTech and RegTech: A systematic literature review. Discover Sustainability, 5(1), 76. https://doi.org/10.1007/s43621-024-00767-5
[13] Abdul-Rahim, R., Bohari, S. A., Aman, A., & Awang, Z. (2022). Benefit-risk perceptions of FinTech adoption for sustainability from bank consumers' perspective. Sustainability, 14(14), 8357. https://doi.org/10.3390/su14148357
[14] Jafri, J. A., Amin, S. I. M., Rahman, A. A., & Nor, S. M. (2024). A systematic literature review of the role of trust and security on FinTech adoption in banking. Heliyon, 10(2), e24018. https://doi.org/10.1016/j.heliyon.2024.e24018
[15] Chuang, Y., & Shrestha, P. (2025). Financial interconnectedness and digital investment systems in FinTech markets. Journal of Risk and Financial Management, 18(3), 145. https://doi.org/10.3390/jrfm18030145
[16] Jain, R., Kumar, S., Sood, K., Grima, S., & Rupeika-Apoga, R. (2023). A systematic literature review of the risk landscape in FinTech. Risks, 11(2), 36. https://doi.org/10.3390/risks11020036
[17] Magableh, K. N. Y., Badwan, N., Al-Nimer, M., Al-Khazaleh, S., Abdallah-Ou-Moussa, S., & Chen, Y. (2025). Role of financial technology (FinTech) innovations in driving sustainable development: A comprehensive literature review and future research avenues. Journal of Science and Technology Policy Management. https://doi.org/10.1108/JSTPM-02-2025-0033
[18] Tarawneh, A., Abdul-Rahman, A., Amin, S. I. M., & colleagues. (2024). A systematic review of FinTech and banking profitability. International Journal of Financial Studies, 12(1), 3. https://doi.org/10.3390/ijfs12010003
[19] Ellili, N. O. D. (2022). Is there any association between FinTech and sustainability? Evidence from bibliometric review and content analysis. Journal of Financial Services Marketing, 27(3), 145-161. https://doi.org/10.1057/s41264-022-00200-2
[20] Branzoli, N., & Supino, I. (2020). FinTech credit: A critical review of empirical research literature. SSRN Electronic Journal. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3612726
Downloads
Published
Data Availability Statement
The raw data supporting the conclusions of this article will be made available by the authors, without undue reservation.
Issue
Section
License
Copyright (c) 2026 Oumaima Abouzaid (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.