The Role of Governance and Digital Transformation in Enhancing Operational Sustainability of Non-Banking Financial Institutions

This paper investigates the determinants of operational sustainability in Non-Banking Financial Institutions (NBFIs), with a specific focus on governance, digital transformation, business model diversification, cost management, and macroeconomic factors.Using regression analysis, the study identifies the significant role of governance and digital transformation in driving sustainability, highlighting their strong positive influence on operational efficiency.These findings underscore the importance of adopting robust governance frameworks and embracing technological advancements in response to the evolving financial landscape.The research further examines the impact of business model diversification, which shows a moderate but positive effect on sustainability.This suggests that expanding service offerings can enhance the income-generating potential of NBFIs, provided such strategies are carefully managed.However, cost management revealed a minimal impact on sustainability, challenging traditional assumptions that financial efficiency is a key determinant of success in the sector.Overall, the paper contributes to the existing literature by validating the importance of governance and digital transformation while providing new insights into the dynamic relationship between business strategies and operational sustainability in NBFIs.The findings highlight the necessity for these institutions to adapt their management practices to align with technological and market changes for long-term viability.