Fintech and Green Finance in Banking:The Interplay of Geographic Dispersion and Bank GovernanceZhaoyan Liu",Xiaoqing (Maggie)Fu*a Faculty of Business Administration,University of Macau,Macau,China*Corresponding author.Email:maggiefu@um.edu.moPreprint noThis preprint research paper has not been peer reviewed.Electronic copy available at:https://ssm.com/abstract=4838389Fintech and Green Finance in Banking:The Interplay of Geographic Dispersion and Bank GovernanceAbstractBoth fintech and green finance are central themes in the ongoing international discourse onbanking sector development,yet they are generally treated as separate in academic research.This study connects fintech and green finance by exploring the potential of fintech infacilitating banks'engagement in green finance.We introduce a novel measure for assessinggeographic dispersion of bank branches and investigate how the impact of fintech on greenfinance activities is related to geographic dispersion and its interplay with bank governance.Drawing upon a sample of all listed banks in China over the 2010-2022 period,we find thatfintech negatively affect green lending participation of geographically more dispersed banks.However,when accompanied by effective bank governance,even highly dispersed banks canunlock the supporting effect of fintech on green lending.Our results are robust after employingalternative measures for fintech and green finance engagement,a subsample,and aninstrumental variable approach.This study represents the pioneering attempt to link geographicdispersion and bank governance with banks'dynamic capabilities.The findings hold importantimplications for banks aimed at implementing a green and responsible strategy:to leveragefintech-enabled green finance,banks particularly those with a wider geographical presenceshould further enhance their corporate governance practices to cultivate stronger dynamiccapabilities that facilitate effective deployment of fintech.Keywords:Green finance,Banking,Fintech,Geographic dispersion,Corporate governanceJEL classification:G21,G30,G34,O33This preprint research paper has not been peer reviewed.Electronic copy available at:https://ssm.com/abstract=4838389