THE IMPACT OF FINTECH ON TRADITIONAL BANKING

International Journal of Computer Science (IJCS) Published by SK Research Group of Companies (SKRGC)

Abstract

Financial technology (Fintech) is used to describe new tech thatseeksto improve and automate the delivery and use of financial services. At its core, Fintech is utilized to help companies, business owners and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smartphones. The rise of Financial Technology (FinTech) has significantly disrupted traditional banking systems, transforming how financial services are delivered and consumed. FinTech innovations, such as digital wallets, peer-to-peer lending, blockchain, and robo-advisors, have introduced greater accessibility, speed, and efficiency, creating new opportunities for consumers and businesses alike. This shift is challenging established banks to rethink their operational models, customer engagement strategies, and regulatory compliance frameworks. While traditional banks maintain advantages in trust, infrastructure, and regulatory alignment, the rapid evolution of FinTech has prompted many to collaborate with or adopt similar technologies to stay competitive. This paper explores the impact of FinTech on traditional banking, analyzing the competitive pressures it creates, the opportunities for collaboration, and the broader implications for the financial sector’s future. Key themes include innovation in financial products, shifts in customer expectations, and the evolving role of regulatory oversight in a technology-driven financial ecosystem.

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Keywords

Fintech, Fintech Services, Banking Industry.