Financial Technology (Fintech) and the Disruption of Traditional Financial Institutions

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Mughees Kazmi

Abstract

Financial technology (Fintech) has emerged as a transformative force, reshaping the financial industry by challenging traditional financial institutions and redefining banking, lending, payments, and investment services. Fintech-driven innovations, such as artificial intelligence (AI), blockchain, big data analytics, and cloud computing, have enabled faster, more efficient, and cost-effective financial services. These advancements have led to increased financial inclusion, improved customer experience, and streamlined banking operations. However, the rapid growth of Fintech presents challenges, including regulatory concerns, cybersecurity risks, and the need for legacy system integration. Traditional financial institutions are adapting by embracing digital transformation, forming strategic partnerships with Fintech firms, and investing in innovative technologies. This paper explores how Fintech is disrupting traditional financial institutions, the key technologies driving this transformation, the challenges faced by both Fintech companies and legacy banks, and the future outlook for the financial sector in a digital-first era.

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How to Cite
Kazmi, M. (2025). Financial Technology (Fintech) and the Disruption of Traditional Financial Institutions. Pioneer Research Journal of Computing Science, 2(1), 20–30. Retrieved from http://prjcs.com/index.php/prjcs/article/view/56

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