Journal of Performance Management
2026, Volume 4, Issue 2 : 1-10
Research Article
Financial Technology (FinTech) and Banking Transformation
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1
Department of Finance and Banking Innovation, Global Business University, London, United Kingdom
2
School of Digital Economy and Financial Technology, European Institute of Technology, Berlin, Germany
3
Department of Management and Information Systems, International Business Research Center, Kuala Lumpur, Malaysia
Abstract

The emergence of Financial Technology (FinTech) has significantly transformed the global banking industry by introducing innovative digital solutions that enhance efficiency, customer experience, financial inclusion, and operational performance. FinTech technologies, including artificial intelligence, blockchain, cloud computing, big data analytics, digital payments, and open banking platforms, have disrupted traditional banking models and encouraged financial institutions to adopt technology-driven strategies. This study examines the role of FinTech in banking transformation and explores its impact on operational efficiency, customer engagement, risk management, and financial inclusion. A conceptual framework is proposed to illustrate the interaction between FinTech innovations and banking performance. The study utilizes secondary data from existing literature, industry reports, and banking case studies to evaluate current trends and future prospects. Findings reveal that FinTech integration contributes significantly to enhanced customer satisfaction, reduced transaction costs, faster service delivery, and improved competitive advantage. However, challenges related to cybersecurity, regulatory compliance, and technological adaptation remain critical concerns. The study concludes that strategic collaboration between traditional banks and FinTech firms is essential for sustainable banking transformation.

 

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