A Study of Impact of Financial Technology on Traditional Banking

Financial Technology (FinTech) states the utilization of modern technology to improve and systematize financial services. It assists firms, stakeholders of business and management of clients with their financial activities more efficiently through specialized software and algorithms, typically accessed via computers and smart phones. The key aim of the paper is to study the impact of FinTech in the banking sectors. A sample size of 150 respondents was selected using a random sampling method, and a descriptive research design was applied. Data collection was conducted with the structured questionnaire as a primary tool. The responses were analyzed using percentage analysis and correlation techniques. The findings reveal that respondents are highly satisfied with the speed of FinTech facilities and the comfort of utilization of their interfaces. Digital wallets, UPI, and mobile banking apps are the most preferred FinTech services among the participants. However, about 70% of respondents expressed concerns about data privacy and cyber security. In conclusion, the growth of the FinTech sector has significantly contributed to the Indian economy. Nevertheless, challenges remain—particularly associated to electronic security and limited usage among the unbanked population. These issues, though relatively minor, should not be overlooked. Regulators must implement effective policies to address these concerns and support the continued advancement of the FinTech sector in transforming India’s banking system.