Transforming the Financial Landscape: Analyzing the Impact of FinTech Innovations on Traditional Banking Systems

Abstract

This study explores the impact of Financial Technology (FinTech) on traditional banking, focusing on customer satisfaction, operational efficiency, and competitive strategy. Utilizing a mixed-methods approach involving customer surveys, expert interviews, and case studies, the research reveals a generational divide in customer satisfaction. Younger customers were found to prefer FinTech services, while older customers favored traditional banking institutions. Operational efficiencies significantly improved for traditional banks that integrated FinTech solutions. Industry professionals largely concurred on the importance of FinTech for maintaining competitive advantage but highlighted associated challenges and complexities. The findings suggest that while FinTech serves as a disruptive force, it also offers avenues for collaboration and efficiency in the traditional banking sector.