Leadership in Fintech Builds Trust and Reduces Vulnerability More When Combined with Leadership in Sustainability

13 Pages Posted: 11 Jul 2024

See all articles by Alex Zarifis

Alex Zarifis

University of Southampton; University of Cambridge - Cambridge Judge Business School

Date Written: July 05, 2024

Abstract

Financial technology (Fintech) and sustainability are two of the main drivers in the transformation of many organizations. New innovative technologies create new services for consumers. The focus on sustainability is a necessary reaction to the many challenges faced by organizations and, more broadly, society. The motivation to support these is, therefore, clear, but not all organizations move forward on both with the same enthusiasm. Leaders in Fintech do not always prioritize operating in a sustainable way. It is, therefore, important to explore and identify the synergies between Fintech and sustainability. One important aspect of this transformation is the consumersʹ perspective, particularly the trust they have, their personal information privacy concerns, and the vulnerability they feel. It is important to clarify whether leadership in Fintech, with sustainability leadership, is more beneficial than leadership in Fintech on its own. This research evaluates consumers' trust, privacy concerns, and vulnerability in the two scenarios separately and then compares them. Survey data is analyzed using Partial-Least Squares Structural Equation Modeling (PLS-SEM) and Multi-group Analysis (MGA). The findings show that leadership in both Fintech and sustainability builds trust more, which in turn reduces vulnerability more. Privacy concerns are lower when sustainability leadership and Fintech leadership come together; however, their combined impact was not found to be sufficiently statistically significant in this study.

Keywords: Fintech, sustainability, trust, personal information privacy concern, privacy, vulnerability, finance, green finance, digital transformation, Insurtech

JEL Classification: G4, G40, G41, G5, D14

Suggested Citation

Zarifis, Alex, Leadership in Fintech Builds Trust and Reduces Vulnerability More When Combined with Leadership in Sustainability (July 05, 2024). Sustainability, volume 16, issue 13, 2024 [10.3390/su16135757], Available at SSRN: https://ssrn.com/abstract=4886604

Alex Zarifis (Contact Author)

University of Southampton ( email )

Southampton Business School
Southampton
United Kingdom

University of Cambridge - Cambridge Judge Business School ( email )

Trumpington St.
Cambridge, CB21AG
United Kingdom

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