Advances in Consumer Research
Issue:6 : 1193-1197
Original Article
Do FinTech Innovations Disrupt Traditional Banking? Empirical Evidence from the Indian Market
 ,
1
Research Scholar, Presidency University, Bangalore, Bengaluru. & Assistant Professor, Vision Degree College, Banaswadi, Bangalore, Bengaluru, India
2
Assistant Professor, Presidency University, Bangalore, Bengaluru, India.
Abstract

The evolution of the FinTech industry in India has drastically changed the way banks operate. As new technologies have been introduced to the banking sector (i.e. UPI; digital wallet; P2P lending platforms; and artificial intelligence for credit score determination), the expectations of consumers have changed, and so has the degree of competition faced by traditional banks. This research aims to determine if FinTech innovations are disruptive to existing banks or if instead they imply enhanced collaboration and improved efficiency and accessibility for consumers, by reviewing the impact of FinTech on the banking sector through analysis of secondary sources, including Reserve Bank of India reports, industry publications and peer-reviewed articles. Although in the short term FinTech may create competitive and profitability pressures for banks, this research demonstrates that in the longer term, an increased adoption rate of FinTech in banks will create increased levels of transformation through efficient operations and increased service quality. Therefore, the conclusion of the research is that FinTech is fundamentally transforming the nature of banks and the banking industry by increasing collaborative innovation opportunities and creating a more inclusive, resilient and technologically powered ecosystem for consumers..

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