In the rapidly evolving landscape of global finance, the adoption of financial technology, or fintech, has emerged as a critical determinant of competitive advantage among banking institutions. Saudi Arabia, with its ambitious Vision 2030 agenda to diversify the economy and enhance technological infrastructure, stands at the forefront of this transformation. A groundbreaking study recently conceptualized by researchers Alrsheedi, Iskandar, and Key delves deeply into the intricate factors influencing fintech adoption within Saudi banks. By constructing a comprehensive model grounded in empirical rigor, this study seeks to illuminate how strategic readiness and organizational dynamics converge to accelerate or inhibit fintech integration.
At the heart of this inquiry lies an expansive analytical framework designed to quantify the contributions of multiple drivers affecting fintech uptake. Central to the methodology is a quantitative cross-sectional design, which provides a snapshot of prevailing conditions and sentiments among decision-makers across the banking sector. The target demographic—inclusive of managerial personnel spanning multiple hierarchical levels—ensures that the data encapsulate a panoramic view of institutional preparedness and ambition. Such inclusivity is vital for understanding not merely superficial adoption rates but underlying organizational intent, resource allocation, and innovation culture.
The study strategically employs non-probability purposive sampling, a method adept at zeroing in on participants whose expertise aligns tightly with the study objectives. This approach filters out peripheral voices and centers the analysis on individuals with substantive strategic knowledge and firsthand experience relevant to fintech initiatives embedded within their banks’ mission and vision frameworks. By focusing on this select cohort, the researchers aim to extract nuanced insights about internal readiness, strategic alignment, and executive perceptions—which are often decisive but overlooked elements in technology adoption studies.
Data collection pivots on the deployment of an online questionnaire, a versatile tool that facilitates broad reach and practical engagement despite potential constraints imposed by geographical dispersion or busy executive schedules. The researchers’ innovative dissemination channels encompass human resources and corporate social responsibility departments, along with professional networking platforms such as LinkedIn. This multi-channel strategy not only increases accessibility but also fosters a sense of organizational endorsement, boosting response rates and reliability of responses.
Crucially, the questionnaire design anchors itself in well-established, validated scales sourced from prior seminal studies in the fintech adoption canon. Incorporating measurement items from publications by Megahed et al. (2021), Awa et al. (2017), Gupta et al. (2022), and Maroufkhani et al. (2020) guarantees both content validity and construct reliability. This methodological rigor underscores the study’s scientific integrity, enabling it to stand confidently amidst an academic discourse characterized by intense scrutiny over measurement precision and replicability.
Emerging from this structured inquiry is a rich mosaic of factors, spanning technological infrastructure, regulatory readiness, managerial vision, and cultural attitudes towards innovation. Saudi banks, while benefitting from state-driven digitalization initiatives, face internal challenges in harmonizing legacy systems with agile fintech platforms. The study highlights the friction points that linger at the intersection of traditional banking protocols and disruptive technologies, such as blockchain, artificial intelligence, and digital payment ecosystems.
One of the pivotal revelations relates to the critical role of leadership mindset in bridging strategic aspirations with operational realities. The more visionary and technology-savvy the managerial echelon, the higher the likelihood of proactive fintech adoption. This dimension not only affects decision-making cadence but also shapes risk tolerance—an essential determinant in the cautious environment of financial institutions. The study meticulously contextualizes these leadership variables within the broader Saudi socio-economic fabric, marked by rapid modernization tempered by deeply rooted traditional values.
Furthermore, organizational readiness emerges as a multifaceted construct encompassing staff expertise, technological infrastructure, and change management capabilities. The Saudi banking sector exhibits marked heterogeneity in these domains, with some institutions demonstrating agile adaptation and others exhibiting inertia. The presence of dedicated fintech innovation units, ongoing employee reskilling programs, and robust IT governance frameworks correlate strongly with positive adoption metrics, emphasizing that technology investment alone is insufficient without parallel human capital development.
Regulatory frameworks designed by the Saudi Central Bank and other governmental bodies also feature prominently in shaping the fintech adoption landscape. The study accentuates the delicate balance regulators must strike between fostering innovation and ensuring financial stability. Clear guidelines, sandbox environments for experimentation, and proactive dialogue between banks and regulators are identified as catalysts that either enable or restrict innovation trajectories. The alignment of regulatory policies with global fintech trends empowers Saudi banks to benchmark themselves competitively while mitigating systemic risks.
Equally important is the cultural receptiveness of both organizations and their clientele to fintech innovations. Change aversion and mistrust can stymie adoption despite technological readiness. The study underscores that customer-centric approaches, transparent communication strategies, and incremental service rollouts can alleviate psychological barriers. As Saudi banks progressively integrate digital wallets, peer-to-peer lending platforms, and robo-advisors, understanding end-user behavior becomes paramount for sustaining adoption momentum.
The methodologies adopted in this research also reflect an acute awareness of emerging challenges in empirical social science research within the fintech domain. The online questionnaire, while efficient, necessitates careful design to preempt biases including self-selection and social desirability effects. The researchers’ plan to pre-test instruments for reliability and content validity speaks to their commitment to data quality, ensuring that resultant inferences rest on a robust evidentiary foundation.
Drawing on these multifaceted insights, the study paves the way for actionable recommendations tailored to the Saudi banking ecosystem but with implications extending to comparably positioned economies. Cultivating an innovation-oriented leadership culture, investing simultaneously in technological and human capital, leveraging regulatory sandboxes, and embracing customer-centric digital solutions emerge as strategic imperatives for banks aspiring to thrive in the fintech era.
Moreover, this research contributes significantly to the growing academic discourse on technology adoption models in emerging markets. By contextualizing Saudi Arabia’s unique socio-economic and regulatory milieu, it enriches theoretical frameworks primarily developed in Western contexts, thereby enhancing their cross-cultural relevance and applicability.
The implications for policymakers are equally profound. The findings advocate for adaptive regulatory policies that dynamically respond to technological advances without compromising financial system integrity. Encouraging collaborative partnerships between banks, fintech startups, and regulatory bodies can catalyze innovation ecosystems with shared governance and risk mitigation mechanisms.
Importantly, the study’s timing aligns with unprecedented technological disruptions accelerated by global digital transformation trends and evolving consumer expectations heightened by the COVID-19 pandemic. Saudi banks’ capability to embed fintech innovations swiftly will likely translate into competitive differentiation, enhanced operational efficiencies, and resilient service delivery models.
Looking forward, future research could expand on this foundational model by incorporating longitudinal data to track dynamic shifts in fintech adoption trajectories or by integrating qualitative case studies that capture lived experiences of change agents within institutions. Such approaches would deepen understanding of the interplay between structural and human factors influencing fintech assimilation.
In conclusion, the comprehensive model proposed by Alrsheedi, Iskandar, and Key offers a scientifically robust lens through which to view fintech adoption in Saudi banks. By dissecting the complex, interrelated factors from organizational readiness and leadership acumen to regulatory environments and cultural attitudes, this study presents a holistic blueprint. It empowers stakeholders to navigate the fintech revolution with informed strategy, thereby positioning Saudi Arabia’s banking sector as a pivotal player in the worldwide digital finance arena.
Subject of Research: The study examines the key factors influencing fintech adoption within Saudi banks, focusing on organizational readiness, leadership perception, regulatory environment, and cultural acceptance.
Article Title: Key factors influencing fintech adoption among Saudi banks: a conceptual framework.
Article References:
Alrsheedi, A., P. Iskandar, Y.H. Key factors influencing fintech adoption among Saudi banks: a conceptual framework.
Humanit Soc Sci Commun 12, 1194 (2025). https://doi.org/10.1057/s41599-025-05532-1
Image Credits: AI Generated
