The Impact of FinTech on Traditional Banking: A Comparative Study of Consumer Behaviour and Financial Performance

In recent years, Financial Technology (FinTech) has emerged as a revolutionary force reshaping the landscape of the global banking sector. With its promise of efficiency, cost reduction, and personalized services, FinTech has attracted a vast user base, particularly in developing economies like India. This study investigates the comparative impact of FinTech on traditional banking, with a dual focus: (1) analysing consumer behavioural changes, and (2) evaluating differences in financial performance indicators. The research integrates both primary data from structured questionnaires and secondary data from RBI, Statista, and global consulting reports. Results reveal a significant shift in consumer preferences towards digital banking, driven by convenience and interface quality, yet tempered by security concerns. Financially, institutions embracing digital innovation tend to exhibit better customer retention and cost efficiency. The paper concludes by recommending hybrid banking models and robust digital literacy programs to bridge the adoption gap and enhance financial inclusion.