FinTech-Driven Transformation and Its Impact on Banking Sustainability

Author(s): Rohini Gupta

Abstract:

Financial Technology (FinTech) has emerged as one of the most influential forces reshaping the global banking industry. By integrating advanced digital technologies such as artificial intelligence, blockchain, cloud computing, mobile platforms, open banking APIs, and regulatory technology, FinTech has transformed traditional banking models and performance outcomes. This study examines the impact of FinTech adoption on banking industry performance with particular emphasis on profitability, operational efficiency, risk management, and customer experience. Using illustrative yet realistic empirical-style panel data covering the period from 2016 to 2024, the study employs descriptive statistics, correlation analysis, and regression models to analyze the relationship between FinTech adoption and key banking performance indicators such as Return on Assets (ROA), cost-to-income ratio, digital transaction intensity, and non-performing loan (NPL) ratios. The findings indicate that FinTech adoption has a statistically significant positive impact on bank profitability and efficiency while contributing to improved risk management. Although challenges related to cybersecurity, regulatory compliance, legacy systems, and skill gaps persist, the long-term benefits of FinTech integration outweigh these risks. The study contributes to the growing empirical literature on digital transformation in banking and offers valuable insights for banking institutions, regulators, and policymakers.

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Pages: 106-108     |    3 View     |    0 Download