The Effect of Corporate Governance on Fintech Adoption with CEO Education as a Moderator: Evidence from Banking Sector of Pakistan

Abstract

"This study addresses the 'performance paradox' within the Pakistani banking sector an operational contradiction wherein standardized regulatory pressure logically dictates uniform digital progress, yet yields deeply fragmented Fintech adoption of Conventional and Islamic Banking Institutions (IBIs). The objective of this research is to empirically assess the impact of internal corporate governance mechanisms specifically board size, independence, and IT expertise on technological agility, while investigating the moderating role of CEO education. A quantitative research design was employed, utilizing a balanced panel dataset of the Conventional banks and Islamic Banking Institutions in Pakistan for the period 2016–2026. Data were manually extracted from Annual Audited financial Statements and Corporate Governance Reports. The findings reveal that board IT expertise and director independence serve as primary drivers of digital transformation. Furthermore, the results indicate that the technical or STEMbased educational background of a CEO significantly moderates the relationship, acting as a vital catalyst in operationalizing board-level Fintech strategies. The study concludes that while the "dual-governance" structure of Islamic banks presents unique coordination challenges, technically literate leadership can effectively bridge the adoption gap. It is recommended that bank shareholders and regulators prioritize the appointment of tech-savvy directors and executives to ensure long-term competitiveness and resilience in Pakistan's evolving digital financial ecosystem.