The Evolution of Digital Banking: Impacts on Traditional Financial Institutions

The rapid advancement of digital technologies has revolutionized many sectors, with banking being one of the most impacted.Digital banking, driven by technological innovations such as mobile banking apps, blockchain, and AIpowered financial services, has significantly changed how customers interact with financial institutions.This transformation has led to both opportunities and challenges for traditional financial institutions (TFIs), requiring them to adapt quickly or risk obsolescence.This review explores the evolution of digital banking and its profound impacts on traditional banks, focusing on consumer behavior, technological advancements, and competitive pressures.