IMPACT OF FINTECH ON TRADITIONAL BANKING IN INDIA

Abstract

This study investigates the evolving landscape of the Indian financial services sector by examining the impact of Financial Technology (FinTech) on traditional banking institutions. FinTech innovations such as digital wallets, peer-to-peer lending platforms, robo-advisors, and blockchain-based solutions are redefining customer expectations and business models. By analyzing both quantitative data and qualitative insights from industry professionals and consumers, this study identifies how FinTech influences service efficiency, customer satisfaction, cost structures, and competitive strategies in traditional banks. The findings reveal that while FinTech poses a disruptive challenge, it also creates collaborative opportunities for banks to adapt and evolve. The paper concludes with strategic recommendations for banks to integrate FinTech solutions and remain relevant in the digital age.The research meticulously examines how FinTech influences traditional banks' service delivery efficiency, customer engagement and satisfaction, internal cost structures, and overall competitive strategies.

The findings reveal that while FinTech presents significant disruptive challenges, compelling traditional banks to reassess long-established business models, it concurrently generates substantial opportunities for collaboration, innovation, and strategic adaptation. This thesis argues that successful navigation of this digital transformation necessitates a proactive integration of FinTech solutions, fostering an ecosystem of co-opetition rather than pure competition. The study concludes with a set of strategic recommendations for Indian traditional banks to leverage FinTech to enhance their resilience, drive digital innovation, and maintain relevance in an increasingly digitized financial services sector.