A Decision-Making Framework for Fintech Adoption Supporting ESG Goals: An Integrated AHP-TOPSIS Techniques
Abstract/Description
PURPOSE: Technological innovation and convergence of sustainable finance have made the ESG considerations central to financial decision making. As banking systems transform from traditional to digital, financial institutions are increasingly expected to align digital transformation with the ESG goals. This study aims to develop a structured decision-making framework to prioritize and evaluate FinTech adoption strategies align with ESG goals in the banking sector.
STUDY DESIGN/METHODOLOGY/APPROACH: Analytic Hierarchy Process (AHP) and Technique fir Oeder of Preference by Similarity to Ideal Solution (TOPSIS) are utilized to address the multi-criteria complexity of FinTech adoption driven by ESG goals. ESG is the main criterion. It divided into nine sub-criteria.
FINDINGS: The results show the governance related factors such as regulatory compliance, data security and transparency are the most influential in FinTech adoption decision. Furthermore, the findings highlight the significance of environmental sustainability, social responsibility, ethical data, and technological innovation in shaping FinTech adoption.
ORIGINALITY/VALUE: The study investigates a novel AHP-TOPSIS based model, which effectively ranks and quantify positive ideal ESG aligned FinTech solutions. It bridges the gap between sustainability and technology innovation in financial decision making.
RESEARCH LIMITATIONS/IMPLICATIONS: It is based on expert and professional input within a Pakistan, which may limit broader generalizability.
PRACTICAL IMPLICATIONS: The model offers a practical tool for financial institutions to select FinTech solutions that drive innovation and comply with ESG standards to enhance long-term value.
SOCIAL IMPLICATIONS: By promoting ESG aligned technological adoption, it supports responsible banking practices. These practices contribute to ethical governance, environmental sustainability, and inclusive growth.
Keywords
MCDM, ESG Goals, FinTech Adoption, AHP, TOPSIS, Banking Sector
Track
Finance
Session Number/Theme
Finance - Session I
Session Chair
Dr. Hilal Anwar Butt
Start Date/Time
14-6-2025 10:55 AM
End Date/Time
14-6-2025 12:35 PM
Location
MCS 3 Ground Floor, AMAN CED Building
Recommended Citation
Nizam, K. (2025). A Decision-Making Framework for Fintech Adoption Supporting ESG Goals: An Integrated AHP-TOPSIS Techniques. IBA SBS 4th International Conference 2025. Retrieved from https://ir.iba.edu.pk/sbsic/2025/program/104
COinS
A Decision-Making Framework for Fintech Adoption Supporting ESG Goals: An Integrated AHP-TOPSIS Techniques
MCS 3 Ground Floor, AMAN CED Building
PURPOSE: Technological innovation and convergence of sustainable finance have made the ESG considerations central to financial decision making. As banking systems transform from traditional to digital, financial institutions are increasingly expected to align digital transformation with the ESG goals. This study aims to develop a structured decision-making framework to prioritize and evaluate FinTech adoption strategies align with ESG goals in the banking sector.
STUDY DESIGN/METHODOLOGY/APPROACH: Analytic Hierarchy Process (AHP) and Technique fir Oeder of Preference by Similarity to Ideal Solution (TOPSIS) are utilized to address the multi-criteria complexity of FinTech adoption driven by ESG goals. ESG is the main criterion. It divided into nine sub-criteria.
FINDINGS: The results show the governance related factors such as regulatory compliance, data security and transparency are the most influential in FinTech adoption decision. Furthermore, the findings highlight the significance of environmental sustainability, social responsibility, ethical data, and technological innovation in shaping FinTech adoption.
ORIGINALITY/VALUE: The study investigates a novel AHP-TOPSIS based model, which effectively ranks and quantify positive ideal ESG aligned FinTech solutions. It bridges the gap between sustainability and technology innovation in financial decision making.
RESEARCH LIMITATIONS/IMPLICATIONS: It is based on expert and professional input within a Pakistan, which may limit broader generalizability.
PRACTICAL IMPLICATIONS: The model offers a practical tool for financial institutions to select FinTech solutions that drive innovation and comply with ESG standards to enhance long-term value.
SOCIAL IMPLICATIONS: By promoting ESG aligned technological adoption, it supports responsible banking practices. These practices contribute to ethical governance, environmental sustainability, and inclusive growth.
