Fintech Innovations and their Role in Transforming Banking Services

Abstract

The fast pace of Financial Technology (FinTech) evolution has immensely changed the conventional banking operations, creating efficiency, accessibility, and security in financial dealings. This research is focused on exploring the central role of FinTech innovations in transforming banking through a critical examination of major technological features like blockchain, artificial intelligence (AI), mobile banking, digital payment systems, and decentralized finance (DeFi).

By evaluating this in great detail, this study identifies the ways in which digitalization has improved customer experiences by facilitating smooth transactions using mobile banking apps, chatbots powered by AI, and automated loan applications. Additionally, the incorporation of big data analytics has enhanced risk management and fraud detection, enhancing financial security and transparency.

The research also examines the effect of FinTech on financial inclusion, which gives underserved individuals access to banking services through digital wallets, peer-to-peer lending institutions, and neo banks. Additionally, the research touches on challenges posed by regulatory systems, cybersecurity threats, and competition with conventional banks and FinTech companies.