IMPACT OF FINTECH ON TRADITIONAL BANKING

The emergence of financial technology (FinTech) has transformed the conventional banking industry, fundamentally changing the way financial services are accessed, provided, and overseen. FinTech includes a broad spectrum of digital advancements, such as mobile banking, online payments, blockchain innovations, AI-powered financial services, and peer-to-peer lending services. This study investigates how FinTech influences conventional banking, highlighting significant areas of disruption, obstacles, and prospects. The research investigates how FinTech companies utilize technology to provide smooth, customer-focused services, frequently surpassing traditional banks regarding speed, convenience, and affordability. Consequently, conventional banks encounter escalating competition, compelling them to implement digital transformation strategies, partner with FinTech firms, and enhance their service offerings to stay pertinent in a progressively digital financial landscape. Nevertheless, although FinTech offers considerable advantages, it also brings regulatory hurdles, cybersecurity risks, and issues related to data privacy. Conventional banks that function within rigid regulatory structures need to tackle these obstacles while incorporating FinTech innovations into their operational frameworks. This paper additionally explores the regulatory environment surrounding FinTech in India and its effects on conventional banks. By examining industry trends, case studies, and empirical evidence, this study seeks to offer a thorough insight into how FinTech is transforming the banking sector in India. The results indicate that although FinTech challenges conventional banking frameworks, it also offers chances for cooperation, creativity, and improved customer satisfaction. In conclusion, the research indicates that conventional banks need to adopt digitalization and form strategic alliances with FinTech companies to maintain their market standing and promote financial growth within the changing financial landscape. Keywords: FinTech, Traditional Banking, Consumer Perception, Digital Disruption, Trust, Operational Efficiency