Financial Technology in Commercial Banks Between Challenges and Opportunities

This research examines the transformative impact of financial technology (FinTech) on commercial banks, focusing on operational efficiency, customer behavior, competitive dynamics, and regulatory frameworks. The study highlights how FinTech innovations—such as artificial intelligence, blockchain, and digital banking platforms—have disrupted traditional banking models, compelling banks to adopt digital strategies to maintain competitiveness. Key findings reveal that FinTech enhances cost efficiency, improves customer experience, and expands financial inclusion, while also introducing challenges like cybersecurity risks and regulatory gaps. The paper synthesizes insights from multiple Arabic-language studies, emphasizing regional disparities in FinTech adoption, with Gulf nations leading digital transformation compared to less developed Arab economies. Recommendations include fostering bank-FinTech collaborations, strengthening cybersecurity, modernizing regulations, and enhancing digital literacy. The study underscores the need for balanced policies to maximize FinTech's benefits while mitigating risks for sustainable banking sector growth.