A moderated mediation analysis on fintech adoption, social influence, competitiveness and financial performance of commercial banks in Pakistan

Commercial banks in Pakistan have a great potential to improve competitiveness and financial performance through fintech adoption. Therefore, this study aims to assess the impact of fintech adoption on financial performance of commercial banks while emphasizing the moderating role of social influence and mediating role of competitiveness in the banks in Pakistan. A cross-sectional survey was conducted with five largest and most reputed commercial banks in Pakistan. Bank employees, particularly bank managers, were chosen as the respondents. The sample size for the study was 367 bank managers selected randomly from the chosen commercial banks. A standardized and structured questionnaire was used to interview the selected respondents to collect primary data. The partial least square structural equation modelling was employed to analyze the data and process the findings of the study. The analysis revealed that 62% of the respondents were male, and nearly 47% were in the age of 40 years and above. The study found a positive and significant impact of fintech adoption on the financial performance of banks. It was also found that social influence had a significant impact on banks’ competitiveness. Moreover, the findings revealed that competitiveness had a significant mediation impact on the increase in fintech adoption and consequently on the financial performance of banks. AcknowledgmentThe authors are thankful to the respondents (i.e., the employees of the selected banks) to participate in the survey without any financial benefit.