The Role of Fintech in Reshaping Business Models in Eastern Europe and the Middle East after COVID-19

This research investigates the transformative influence of Fintech on reshaping business models within the dynamic context of Eastern Europe and the Middle East (EEME) in the post-COVID-19 era. The study examines how the pandemic has accelerated Fintech adoption and its subsequent impact on business model evolution across various sectors in the region. Existing literature highlights the disruptive potential of Fintech globally, but there is a gap in understanding its specific impact on the EEME region, particularly in the post-pandemic recovery phase. This study addresses this gap by exploring the complex interplay between Fintech adoption and business model transformation. A large-scale survey of 1050 businesses operating in various sectors across EEME was conducted. The survey captured data on Fintech adoption rates, types of solutions utilized, changes in key aspects of business models (revenue generation, customer acquisition, operations, value proposition), enabling factors (regulatory support, consumer demand, digital infrastructure), and perceived challenges (cybersecurity, data privacy). Statistical analysis, including correlation and regression analysis, was employed to test the research hypotheses. The findings reveal a significant acceleration of Fintech adoption post-COVID-19, with 78% of businesses adopting new Fintech solutions compared to 32% pre-pandemic. Key drivers of adoption include regulatory support for digital finance (β = 0.62, p < 0.001), consumer demand for digital services (β = 0.55, p < 0.001), and digital infrastructure development (β = 0.48, p < 0.001). Sectoral variations in impact were observed, with finance (85% reporting significant changes) and retail (72%) experiencing greater transformation than manufacturing (48%). While cybersecurity and data privacy concerns were prevalent (68% and 55% respectively), their negative correlation with business model transformation was relatively weak (β = -0.25 and β = -0.20, p < 0.05). These results suggest that while challenges exist, they do not necessarily prevent businesses from adapting their models using Fintech. This study contributes to the field by providing empirical evidence of the transformative role of Fintech in EEME post-COVID-19, highlighting the key drivers and challenges, and revealing sectoral variations in impact. The findings have practical implications for businesses, policymakers, and investors in the region. The research acknowledges limitations inherent in survey-based methodologies, such as potential response bias and the cross-sectional nature of the data, which limits causal inferences. Future research could explore these dynamics through longitudinal studies and qualitative investigations.