The Impact of Financial Technology on Traditional Banking Models

Abstract

As a consequence of the rapid advancement of fintech, which has transformed the global financial system, traditional banking models are encountering new difficulties. The impact of financial technology on conventional banking, particularly in light of recent developments such as online payment systems, distributed ledger technology, peer-to-peer lending, and automated investment advice, which are altering service expectations, company operations, and regulatory frameworks. by comparing and contrasting case studies of famous fintech disruptors with those of conventional banks, this article explores the opportunities and challenges that incumbent banks face when attempting to integrate these technological breakthroughs. Furthermore, the research delves into the potential future effects of fintech on banking services, financial inclusion, and security. The results show that traditional banks are up against fintech companies, but they also stand to gain from fintech's opportunities for collaboration and innovation, which might lead to better services for tech-savvy clients. Offering a hybrid model where traditional banks compete in the digital era by utilizing fintech technology.