Impact of Fintech Innovations on Traditional Banking: A Study of Customer Adoption in India

Abstract

This research paper explores the role of innovations in fintech in affecting traditional banking systems and its acceptance by the customers in India. The Indian financial sector has drastically changed with the rapid expansion of digital payment systems, mobile and artificial intelligence technologies, blockchain technology, and online financial services. The study assesses the impact of fintech services on customer behaviour, attitudes on the choice of bank offering such services, on access to banking services, on convenience, on security perception and on financial inclusion. It also examines the difficulties traditional banks have to overcome in order to meet customer expectations as well as keep up with the technological innovations that are emerging. Factors that impact the adoption of fintech are highlighted in the research, such as ease of use, trust, digital literacy, service quality, and perceived usefulness of fintech applications. From this, the study, which is an empirical analysis, is able to identify the increasing dependence on Digital Financial Services among urban and semi-urban households using their customer responses. The results indicate that fintech innovations are transforming the way banks operate and prompting them to pursue a customer-centric approach towards digital banking to stay competitive in the changing financial landscape of India.