You are entitled to access the full text of this documentThe inflected of fintech solutions on financial performance in SMEs: An analysis of the IT industry in the UAE

This study investigates the impact of introducing financial technology (Fintech) on increasing the financial viability of small and medium enterprises (SMEs) operating in the IT sector in the United Arab Emirates (UAE). By identifying the obstacles that SMEs experience while dealing digital transformation, this study aims to show how the emerging financial technologies, including digital banking, peer-to-peer lending, and AI applications, can drive enhancements in financial utilization and the innovation of banking products, cost-cuts, increased organizational productivity, and better client experiences. A quantitative research approach was implemented, and the research tool used was a structured questionnaire developed to capture respondents’ data from 250 respondents from SMEs in the UAE. Descriptive and inferential statistics of correlation and regression analysis were done using the stratified random sampling technique. Results indicated that fintech adoption enhances financial performance in SMEs. Specifically, increased accessibility shows a strong positive correlation with financial performance (r = 0.998, p < 0.01), while enhanced efficiency and improved customer experience also show strong correlations (r = 0.635, p < 0.01). The variable "Increased Accessibility" showed the most significant effect on the financial performance of SMEs, with a highly significant positive correlation and the strongest predictive value in the regression analysis. This study concludes that the implementation of fintech solutions offers significant opportunities for improving the financial performance of SMEs and recommends increased investment in fintech and appropriate regulation for that purpose.