The Rise of Fintech: Transforming Traditional Banking Through Digital Platforms, Automation, and Big Data

Abstract

This article explores the transformative impact of fintech on traditional banking through a comprehensive literature review. The rise of financial technology (fintech) has significantly altered the banking landscape, driven by advancements in digital platforms, automation, and big data analytics. This study synthesizes existing research to illustrate how fintech innovations enhance customer experiences, streamline operations, and improve financial services accessibility. Digital platforms enable banks to offer personalized services, while automation reduces operational costs and increases efficiency. Furthermore, big data analytics empowers financial institutions to make informed decisions, mitigate risks, and tailor products to meet customer needs. The review identifies key trends in fintech, including the emergence of neobanks, peer-to-peer lending, and blockchain technology, which challenge traditional banking models. Additionally, the study highlights the regulatory challenges and cybersecurity risks associated with the rapid adoption of fintech solutions. By integrating theoretical frameworks and empirical findings, this article provides valuable insights for banking professionals and policymakers aiming to navigate the evolving financial landscape. The findings underscore the necessity for traditional banks to adapt to these changes by embracing fintech innovations to remain competitive and relevant in a digital economy.