IMPACT OF FINTECH INNOVATIONS ON TRADITIONAL BANKING AND COMMERCE

Abstract

The rapid evolution of financial technology (fintech) has brought transformative changes to the landscape of banking and commerce. Fintech innovations, including digital payments, blockchain, peer-to-peer lending, and robo-advisory services, are redefining how financial services are delivered and consumed. These advancements have posed significant challenges to traditional banking institutions by disrupting conventional business models and compelling them to adopt digital strategies. Moreover, fintech has enhanced customer experience, promoted financial inclusion, and accelerated transaction efficiency. However, it also raises regulatory, security, and ethical concerns that necessitate careful oversight. This study examines the multifaceted impact of fintech on traditional banking and commerce, analyzing both the opportunities and the risks involved. The findings underscore the importance of collaboration between fintech firms and established financial institutions to foster innovation while ensuring stability in the financial ecosystem.