FinTech and digital transformation in the banking sector: A systematic literature review

The transformation of the banking sector through financial technology (FinTech) has reshaped traditional financial services, offering innovative, efficient, and customer-centric solutions. This systematic review examines 20 papers (2019-2025) focused on FinTech adoption, blockchain integration, digital currency, mobile payments, green finance, and regulatory innovations in banking, with a particular emphasis on the Indian context. It analyses key themes such as customer trust and technology acceptance, the role of digital literacy, organizational agility, regulatory sandboxes, and sustainable finance practices. The review highlights common methodologies including structural equation modelling, confirmatory factor analysis, and panel regression, while also examining the use of case studies such as neo-banking platforms and the collapse of U.S. banks influencing FinTech investment trends. Findings underscore the importance of perceived usefulness, trust, and facilitating conditions in driving adoption, alongside the challenges of cybersecurity, regulatory adaptation, and market readiness. This review offers actionable insights for policymakers, practitioners, and researchers aiming to navigate the evolving FinTech ecosystem and enhance the resilience and inclusivity of the banking sector.