A Study on the Impact of Fintech Innovations on Traditional Banking Services

In recent years, the financial landscape in India has undergone a profound transformation, driven by the rapid evolution and adoption of fintech innovations such as Unified Payments Interface (UPI), digital wallets, neobanking platforms, and Buy Now Pay Later (BNPL) services. These technological innovations have redefined the way consumers interact with financial services, challenging the long-standing dominance of traditional banking institutions. This study investigates how fintech innovations are influencing consumer behavior, shaping transaction preferences, altering trust dynamics, and impacting the overall usage frequency of traditional banking services. It also explores the perception of users towards security and ease of access in fintech platforms as compared to conventional banking channels. The objective of this research is to examine the degree to which Indian consumers are shifting their banking preferences from traditional institutions to fintech platforms and to analyze the associated factors driving this shift. The study uses a dual-method approach — a quantitative analysis of survey data collected from 20 representative users (sample reduced for simulation purposes) and a qualitative thematic analysis based on in-depth interviews with industry professionals. Descriptive statistics, frequency distributions, and regression analysis were used to understand patterns of fintech usage, trust levels, and the correlation between increased fintech usage and declining engagement with traditional banks.