FINTECH INNOVATIONS AND BANKING SECTOR TRANSFORMATION: A LITERATURE REVIEW

Abstract

The rapid evolution of Financial Technology (FinTech) has significantly transformed the global banking sector, reshaping traditional banking models and services. This literature review explores the trajectory of FinTech innovations—such as blockchain, mobile banking, artificial intelligence, robo-advisors, and peer-to-peer lending—and their impact on banking operations, customer experience, regulatory frameworks, and financial inclusion. The study synthesizes insights from global research to highlight how FinTech enhances operational efficiency, enables personalized financial services, and challenges incumbent banks to adopt digital strategies. It also discusses the risks and regulatory complexities arising from these innovations. By examining academic and industry sources, this review offers a comprehensive understanding of the opportunities and challenges FinTech presents to the banking sector, providing a foundation for future research and policy development.