THE ROLE OF FINTECH IN DISRUPTING TRADITIONAL BANKING MODELS

Abstract

The financial technology (fintech) sector has emerged as a significant disruptor in the traditional banking landscape, fundamentally altering how financial services are delivered and consumed. This paper examines the multifaceted role of fintech in reshaping banking models, focusing on its impact on efficiency, customer experience, and market competition. By leveraging advanced technologies such as blockchain, artificial intelligence, and big data analytics, fintech companies offer innovative solutions that enhance financial inclusion and streamline operations. The integration of these technologies has led to the development of peer-to-peer lending, mobile banking, and digital payment systems, which challenge conventional banks' market share. Furthermore, this study explores regulatory challenges and the evolving relationship between fintech firms and traditional banking institutions. The findings underscore the need for traditional banks to adapt to this rapidly changing environment by embracing technological advancements and fostering collaboration with fintech entities.