Home⇛Psychology and Education: A Multidisciplinary Journal⇛vol. 41 no. 7 (2025)

Digital Financial Stewardship and Fiscal Sustainability in Higher Education Institutions: A Predictive Study Using Exploratory Factor Analysis

Arlen Palomas

Discipline: Education

 

Abstract:

In response to growing financial pressures and accountability demands, higher education institutions (HEIs) are increasingly adopting digital technologies to modernize financial operations. However, limited empirical evidence exists on how financial technology (FinTech) adoption and strategic finance alignment predict fiscal sustainability within academic institutions, particularly in emerging contexts such as the Philippines. This study introduces the concept of digital financial stewardship to bridge this gap, positioning FinTech as a strategic asset for institutional resilience. A predictive-correlational quantitative research design was employed, involving 40 Philippine HEIs selected through purposive sampling. Data were collected via structured surveys and institutional reports and analyzed using descriptive statistics, exploratory factor analysis, Pearson correlation, and multiple linear regression. Variables included FinTech adoption, strategic finance alignment, and fiscal sustainability indicators such as budget efficiency, cost control, and revenue diversification. Findings revealed strong internal consistency and validity for all constructs (Cronbach’s α > 0.80; KMO > 0.74). Correlation analysis indicated significant positive relationships between FinTech adoption, strategic finance alignment, and fiscal sustainability. Multiple regression results showed that both FinTech adoption (β = 0.562, p < .001) and strategic finance alignment (β = 0.438, p = .006) significantly predicted fiscal sustainability, explaining 53.6% of the variance. The results confirm that digital financial tools, when aligned with institutional strategy, enhance financial performance and sustainability. The study supports the theoretical framing of digital financial stewardship as a multidimensional approach integrating technology, strategy, and governance. It also highlights the need for institutional policies that facilitate system integration, data-driven decision-making, and strategic financial alignment. Practical implications include guiding finance directors and policymakers toward more cohesive, data-informed financial governance frameworks, ultimately advancing institutional agility and long-term fiscal health. The findings affirm that FinTech adoption and strategic finance alignment strongly predict fiscal sustainability in higher education institutions. This demonstrates that integrating digital tools with smart financial planning enables better budget management and strengthens financial stability.



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