Impact of FinTech on Traditional Banking Models: A Literature-Based Analysis

AbstractThis study the transformative impact of Financial Technology on the traditional banking sector, emphasisingstrategic opportunities, emerging risks, and the evolving hybrid landscape. The primary objective is to evaluatewhether FinTech will replace or reshape conventional banking models. Relying on a comprehensive review ofsecondary literature, global reports, and case studies from institutions such as the World Bank, IMF, andMcKinsey, the study synthesizes insights on digital payments, lending platforms, neobanks, and FinTech–bankcollaborations. Key findings reveals that Financial technology such as mobile banking, blockchain and robo-advisory services have significantly enhanced financial accessibility, efficiency, and customer personalisation. While these innovations has competitive threats to legacy bank they also offer strategic opportunities foroperational modernization, market expansion, and financial inclusion. But the assessment of hybrid Banktechnology models confirms that cooperation rather than displacement of becoming the overriding trend.