The Role of FinTech in Reshaping Traditional Banking in India

The Indian banking industry is undergoing a remarkable evolution driven by the rapid emergence of financial technology (FinTech). This review article explores how FinTech has emerged as a transformative force, redefining the traditional banking framework by introducing innovative, customer-centric, and technology-driven solutions. Key areas of disruption include digital transactions, lending platforms, wealth management tools, and regulatory technology. The paper highlights how FinTech has enhanced financial inclusion, improved operational efficiency, and fostered competitive collaboration between banks and startups. It also addresses challenges such as cybersecurity risks, regulatory shortcomings, and obstacles to digital literacy. Through an analysis of current trends, successful partnerships, and governmental initiatives, this review underscores the crucial role FinTech plays in promoting a more inclusive, adaptable, and resilient banking ecosystem in India. The article concludes by emphasizing the need for ongoing innovation, regulatory clarity, and strategic alliances between traditional banks and FinTech companies to ensure sustainable progress in the digital financial landscape.