Assessing the influence of financial technology adoption on the performance of commercial bank in the UAE

Purpose This paper examines the association between Financial Technology (FinTech) adoption and the financial performance of commercial banks operating in the UAE over the period 2012–2021. It focuses on three FinTech dimensions – financial inclusion, alternative payment methods, and automation – and relates them to three performance indicators – total deposits, total loans, and net profit margin. The study is framed by the Technology–Organization–Environment (TOE) and Diffusion of Innovation (DOI) perspectives to explain why different FinTech dimensions may influence performance through distinct channels. Design/methodology/approach The study adopts a quantitative approach combining survey-based measures of bank FinTech adoption (financial managers, IT professionals, and senior officers; 205 valid responses) with archival financial statements. Descriptive statistics and multiple regression are used to estimate the relationships between FinTech dimensions and performance indicators. Because FinTech adoption is self-reported and performance outcomes are averaged over a long horizon, the empirical results are interpreted as correlational rather than causal. Findings The results indicate positive associations between all three FinTech dimensions and the performance indicators. Alternative payment methods show the strongest association with deposits and profitability, while automation is most closely linked to operational efficiency and profit margins. The models report high explanatory power (adjusted R2 ˜ 0.88–0.90); however, this should be treated cautiously because omitted bank-level controls and common-method bias can inflate model fit. Social implications The findings support the view that digital innovation can complement traditional banking by expanding access, improving transaction convenience, and reducing operational frictions. They also highlight the need for future research using matched time periods, bank-level control variables, and stronger validity tests to confirm the mechanisms proposed by TOE and DOI and to assess potential negative effects such as cybersecurity risk and competitive margin pressure. Originality/value The paper contributes UAE-focused evidence by separating FinTech into inclusion, payments, and automation dimensions and linking them to core banking outcomes. It offers policy-relevant insights for regulators and bank managers, while clearly acknowledging design limitations and avenues for more rigorous follow-up work.