FinTech key to SME sustainability, finds award winning study

MUSCAT: A recent study conducted in Oman, which won the 12th National Research Award organised by the Research and Innovation Authority in the Culture, Social and Basic Sciences field under the PhD category, has highlighted the growing importance of financial technology (FinTech) in strengthening the sustainability and competitiveness of SMEs.
The research, titled 'Investigating the Critical Drivers of Fintech Adoption to Promote Business Sustainability of SMEs,' was led by Dr Mohd Abass Bhat, Senior Lecturer and Research Coordinator for the Research, Innovation, and Entrepreneurship (RIE) Committee in the Department of Economics and Business Administration, University of Technology and Applied Sciences Muscat, examines the factors influencing FinTech adoption and its impact on business sustainability among SMEs in Oman, based on data collected from 402 SME owners and managers.
According to Dr Bhat, the findings indicate that perceived benefits such as economic advantages, convenience, and transaction efficiency play a significant role in encouraging SMEs to adopt FinTech solutions. At the same time, perceived risks, including financial, legal, security, and operational concerns, continue to act as major barriers to adoption. Despite these challenges, the study confirms that FinTech adoption has a positive and direct impact on business sustainability, enabling SMEs to improve financial management, expand market access, and enhance competitiveness.

However, the research also reveals that perceived risks can negatively affect sustainability outcomes, due to concerns related to cybersecurity, skills gaps, social inclusion, and environmental considerations. These findings underline the need for a balanced approach that addresses both the advantages and challenges associated with FinTech adoption.
The research has been published in the peer-reviewed journal Global Knowledge, Memory and Communication. The project was conducted by a research team comprising Dr Mohd Abass Bhat, Dr Shagufta Tariq Khan, Dr Abeer F Alkhwaldi, and Dr Amir A Abdulmuhsin.
The study highlights the important role of policymakers and industry stakeholders in creating a supportive environment for FinTech adoption. Dr Bhat emphasised that strengthening regulatory frameworks, enhancing cybersecurity measures, improving financial literacy, and introducing targeted incentives can help reduce adoption barriers and encourage wider use of digital financial solutions. He added that collaboration between government entities, private sector institutions, and research organisations is essential to promote innovation and build trust in FinTech systems.
Dr Bhat described the recognition as a significant and emotional milestone. “This award is not just a personal achievement, but a validation of our collective research journey and the effort invested in producing impactful work,” he said, adding that it reinforces the importance of research that contributes to innovation, sustainable development, and positive societal change in Oman.