The Impact of Financial Technology (FinTech) on Traditional Banking: Disruption or Collaboration

Abstract

The rapid advancement of financial technology (FinTech) has brought significant changes to the traditional banking sector, challenging established institutions with innovative products and services that cater to the evolving needs of consumers. the dual impact of FinTech on traditional banking, examining whether the relationship is characterized more by disruption or collaboration. Through an analysis of market trends, case studies, and financial data, this study investigates how FinTech companies have disrupted conventional banking practices by offering alternative solutions in payments, lending, wealth management, and financial advisory services. the collaborative strategies that have emerged as traditional banks increasingly partner with or invest in FinTech firms to enhance their technological capabilities and improve customer experiences. Findings suggest that while FinTech has undoubtedly disrupted certain aspects of traditional banking, the growing trend of collaboration points to a hybrid model where both sectors can coexist and benefit from each other's strengths.