The Impact of Innovation Practices on the Performance of Financial Technology Companies: An Empirical Study in UAE

Abstract

The advancement of financial technology in modern society has been a beneficial factor that has led to growth in various sectors. Financial Technology (FinTech), is a phenomenon that spans the fields of informat ion technology and innovation in financial organizations. The growth of FinTech is currently on the rise and is gaining more interest from financial market investors as well as academics. To improve the performance of FinTech companies, practicing innovation in terms of product, process, and marketing is essential for achieving a high degree of performance in the digital financial market. The purpose of this study is to examined the relationship between innovation practices (product innovation, process innovation, marketing innovation, and organizational innovation) and the performance of FinTech companies in the UAE. In addition, evaluate the current trends of FinTech in the UAE. A quantitative methodology was used to examine these relationships. The self-administrated questionnaire is data collection instrument. The survey includes FinTech companies that are conducting business in all cities of the UAE. The study sample in the survey includes 277 respondents who represent the staff working in IT departments, as well as the managers and supervisors in FinTech companies. Data analysis has been done using simple and multiple linear regression. The result of this study showed significant relationships between innovation practice in the FinTech domain and the performance of FinTech companies. The outcome of this study will help policymakers in Securities and Commodities Authority to set the proper regulations and guidelines for FinTech companies in a way to improve the overall performance of their financial services.