Fintech Disruption and Its Effect on the Profitability of Indian Banks: Public vs. Private

Fintech, or financial technology, is revolutionizing the financial sector by offering innovative alternatives to traditional banking and financial services. This study explores the evolution of fintech and its impact on the profitability of public and private sector banks in India. Using data from PricewaterhouseCoopers (PwC), Kleinfeld Peat Marwick Goerdeler (KPMG), the Reserve Bank of India (RBI), and the Social Science Research Network (SSRN), the research examines fintech’s historical development, market size, and growth in the Indian banking sector. With India emerging as one of the fastest-growing fintech markets globally, the sector is driving a transformative shift in banking operations and consumer behavior. Fintech services are not only enhancing financial accessibility and efficiency but also redefining the competitive landscape of the industry. This paper highlights the disruptive influence of fintech on Indian banks and its implications for the future of digital finance.