FinTech Advancement and Its Transformative Impact on the Banking Industry in UAE

FinTech, an emerging realm of innovative financial technology utilizing information and communication technologies, has emerged as a major driver of change in the 4th industrial revolution, significantly impacting societies' living and working conditions. As advanced technologies converge and entrepreneurship takes on a more complex and computerized nature, the banking sector has found itself confronted with formidable challenges. Seizing the opportunity presented by these developments, new entrants such as FinTech and Big Tech companies have sought to gain market shares by promoting novel consumer patterns. In light of this dynamic landscape, this study aims to delve into the rapid expansion of FinTech and assess its influence on the UAE banking system. With the proliferation of FinTech companies competing with traditional banks on financial products and services, the subject has gained immense relevance in contemporary times as digital technology continues to evolve. To investigate this phenomenon, our research employs a questionnaire method, primarily comprising closed questions, to gather data from key players in the UAE financial landscape. Two distinct samples form the foundation of our data collection: the first sample consists of consumers utilizing financial products and services in the UAE banking sector, while the second sample comprises employees working within the UAE banking industry. The results reveal a noteworthy trend wherein consumers of all age groups exhibit a higher level of trust in traditional banks compared to FinTech companies. Additionally, the prevalence of mobile transactions for each consumer appears to hinge on factors such as age and education. From the consumers' responses, it becomes evident that security ranks foremost among their concerns when availing financial services from FinTech companies. Conversely, insights gleaned from the second questionnaire, targeting bank employees, underscore the critical role of educational levels in shaping their preparedness and responsiveness towards new technologies. This research offers a comprehensive exploration of the evolving FinTech landscape and its impact on the UAE banking system. As digital technology continues to progress and disrupt traditional financial services, understanding the nuances of this transformative era becomes crucial for all stakeholders involved.