The Role of Fintech in Disrupting Traditional Banking Models

The Role of Fintech in Disrupting Traditional Banking Models

Dr. Manitha D Shah, Keerthi Reddy, Jigyansha Mishra, Sibangi Mishra

Department of Finance, Jain University, CMS business School

Abstract

This study investigates the disruptive effects of financial technology (fintech) on traditional banking models. This report examines fintech's role in improving financial accessibility, efficiency, and client personalization, highlighting how innovations like digital payments, blockchain, AI, and peer-to-peer lending challenge traditional banking institutions. Through correlation and regression analysis, the study discovers a negative association between fintech adoption and traditional bank profit margins, implying that the rise of fintech alternatives may reduce traditional banking profitability. Furthermore, the study emphasizes the need of collaboration methods between fintech businesses and banks in developing a digitally integrated financial ecosystem. The findings highlight how adaptation, innovation, and collaboration will shape the future of banking, encouraging a more accessible and customer-centric global financial system.