THE ROLE OF FINTECH IN RESHAPING TRADITIONAL BANKING SERVICES

Abstract

Advances in financial technology (fintech) have disrupted the financial services sector which relegates conventional banks to the background and opens up possibilities of innovation and inclusion. The current essay examines how fintech is transforming traditional banking services, highlighting the effects it has had on efficiency and accessibility, customer experience and control practices of regulators. Fintech solutions (covering areas like mobile payments and peer-to-peer lending through to blockchain-based transactions and robo-advisory services) are not only simplifying processes but changing how customers interact with financial institutions in new ways. With the help of digitalization and data analytics, fintech companies have created customer-focused and nimble solutions unlike their traditional counterparts which are often hierarchical in nature.