THE ROLE OF FINTECH IN TRANSFORMING FINANCIAL INSTITUTIONS

Abstract

This paper explores the transformative role of Financial Technology (FinTech) in reshaping financial institutions and the broader financial landscape. As FinTech continues to evolve, it has introduced innovative solutions that enhance efficiency, improve customer experiences, and drive financial inclusion. Key areas of impact include digital payments, peer-to-peer lending, blockchain technology, robo-advisory services, and regulatory technology (RegTech). By streamlining operations and reducing costs, FinTech enables traditional financial institutions to remain competitive in an increasingly digital world. However, this integration also poses challenges, such as regulatory compliance, cybersecurity risks, and the need to upgrade legacy systems. Through a comprehensive analysis, this study highlights the ongoing collaboration between FinTech firms and traditional financial institutions, emphasizing the potential for creating a more accessible, efficient, and secure financial ecosystem. The findings underscore the importance of embracing technological advancements to meet evolving consumer demands and foster innovation in the financial services sector.