Does FinTech adoption increase the diffusion rate of digital financial inclusion? A study of the banking industry sector

Abstract

Purpose The purpose of this study is to discuss the United Arab Emirates’ (UAE) favorable attitude toward the financial sector’s digital transformation and the development of FinTech due to the rise of financial technology. FinTech blends innovation and technology to provide financial inclusion to stakeholders through various new products and services such metaverse and artificial intelligence. Design/methodology/approach A quantitative research approach was used to empirically validate the suggested research model by using 260 Emirates-based banking authorities and administrators’ data. Findings The findings indicate that FinTech adoption had a substantial impact on the competitiveness and performance of the UAE banking industry during COVID-19 times. The research indicates that adequate FinTech implementation and alignment with technology management directly influence the performance of the UAE’s banking sector in difficult times. Originality/value This study is critical because the UAE banking sector serves diverse nationalities, and its success is contingent on FinTech and its competitive edge.