A project report on

“IMPACT OF FINANCIAL TECHNOLOGY (FINTECH) ON THE

BANKING SECTOR”

A Dissertation submitted to Rajendra University

In partial fulfilment of requirement for the award of the Degree
of

BACHELOR OF COMMERCE
By

GIRIJA SHANKAR THANAPATI

EXAM ROLL NO – R04522COM003

Under the supervision of:

Prof. Kaushalya kisan

DEPARTMENT OF COMMERCE
RAJENDRA UNIVERSITY, PRAJNA VIHAR
BALANGIR, ODISHA, INDIA
2025
ABSTRACT
“Financial technology” refers to the use of technology to make financial
services more efficient, convenient, accessible and automate. It helps
companies, business owners and consumers to manage their financial
operations by providing specialised software and algorithms which are
available in their smartphones, and computers. The rapid evolution of
Financial Technology (Fintech) has significantly transformed the banking
sector, reshaping the traditional banking practices and customer
interaction. In simple word we can say that, it changes the way banks
operate, interact with customers and deliver financial services. The
objective of the study is to examine the impact of Fintech on banking
sectors focusing on key areas such as: - operational efficiency, risk
management, revenue growth, regulatory challenges, customer
experience, and competitive dynamics. Additionally, it also examines the
regulatory implications of fintech innovation and the challenges that
banks face in integrating these technologies into their existing
frameworks. Through a comprehensive analysis this paper aims to provide
insights into the future of banking in an increasingly digital landscape,
emphasizing the need for collaboration between traditional banks and
fintech firms to ensure sustainable growth.
 Chapter 1
INTRODUCTION

1.1 INTRODUCTION
The banking sector has experience significant transformation in
recent years, driven by the rapid advancement of technology and
changing consumer behaviours. Among these advancements,
financial technology (Fintech) has emerged as a crucial force
reshaping how financial services are delivered and consumed.
“Financial technology” refers to the use of technology to deliver
financial services and digital products to consumers. It makes the
financial services more simple, convenient, accessible and
automate. It includes mobile banking, online payment platforms,
and digital investment services etc. It is not a new industry; it is just
one that has evolved very quickly due to the power of technology. It
always been part of the financial world whether its introduction of
credit cards in 1950, ATM in 1987, electronic trading platforms etc.

The growing popularity and increased usage of fintech platforms are

aided with various benefits like;
a) Enhanced customer experience – “Fintech” improve the
customer experience through providing user-friendly interface,
personalized services, mobile banking, and real-time updates.
“Personalised services” enabled banks to offer personalised
services, “mobile banking” enabled customers to access
banking services on mobile and “real-time updates” informed
him about transactions and account balances.
b) Increased accessibility – It has made banking services more
accessible for individuals and businesses especially in rural area
where traditional banks may not have physical presence. It
enables users to access financial services anytime, anywhere,
through mobile payment apps and digital wallets without
needing a physical bank.
c) Reduced cost – It reduced operational costs for bank by
automating processes and reducing the need for physical
branches. In simple word, we can say that it is more affordable
as compare to traditional banking services.
d) Faster transactions – Fintech innovations like blockchain
technology and real-time payment systems enable faster
transaction processing. It is particularly beneficial for cross
boarder payments which can traditionally take several days.
e) Improved risk management – Advance analytics and AI allow
banks to better assess credit risk and detect frauds. These
technologies can analyse vast amount of data quickly and
leading to more inform decision making.
f) Financial inclusion – Fintech corporations promote financial
inclusion by providing services to individuals and small
businesses that may not qualify for traditional banking services.
For example: micro-loans, peer to peer lending and alternative
credit scoring models provide finance for many people and
startups.
The rise of fintech has been fuelled by the increasing demand for
digital financial services, proliferation of mobile devices and the
 growing need for faster, cheaper, and more convenient financial
transactions. Fintech corporations such as: - payment processors
(Phone pay, Google pay), digital lenders (Bajaj fin serve, Muthoot
finance) and insurance firms (Policy bazar, SBI General insurance)
have disrupted traditional banking services by transforming
traditional business models, products, and services. The impact of
fintech on the banking sector is multifaceted. On the one hand, it
has enabled banks to improve the operational efficiency, reduce
costs, and enhance customer experience. Digital channels, such as
mobile banking and online platforms have increased access to
financial services, particularly for undeserved populations. On the
other hand, it has also introduced new challenges and risks for the
banks. The increasing reliance on digital channels has heightened
cybersecurity risks, while the proliferation of fintech corporations
has raised concerns about regulatory compliance and consumer
protection.

Despite the significant impact of fintech on the banking sector,

there is a need for further research to fully understand the
implications of this transformation.
This study aims to investigate the impact of fintech on the banking
sector, exploring its effects on banking efficiency, customer
satisfaction, risk management, and competitiveness. By examining
the experiences of banks and fintech companies, this study seeks to
provide insights into the opportunities and challenges posed by
fintech and to inform strategies for banks, regulators,
and policy makers.

1.2 STATEMENT OF RESEARCH PROBLEM

An overwhelming interest is growing in financial technology
(fintech) in recent years. This contemporary financial phenomenon
developed basically due to heavy use of technology in communication,
some called it network economics. Fintech service provides wide range of
financial services capitalizing from the explosive developments in
technology, it includes the payment technology, lending technology,
insurance technology, investment technology, banking technology.
Despite the fact that the Fintech players attract the global attention from
the financial industry leaders and legislators, the issue as a subject of
study still in infant stage, little scientific research has been conducted yet.
The paper aims at first place to shed light on this wave of impact of
Fintech on banking industry, it aims also to clarify the role of Fintech in the
financial industry in general and banking sector in particular. The paper
obtained its goals in two main phases, firstly; background and definition of
the Fintech. In the second phase, we will identify the impact of Fintech on
banking sector and the required response to face it.
1.3 OBJECTIVE OF THE STUDY
 To understand the historical evolution of fintech.
 To analyse the impact of fintech on the operational
efficiency of the banking sectors.
 To explore the impact of fintech on banking sector’s
business models and revenue streams.
 To investigate the effects of fintech on the customer
satisfaction of banking sectors.
 To assess the challenges associated with Fintech in
financial services.
 To analyse the influence of fintech on banking sector’s
risk management and security.
 Evaluates future trends and innovations of fintech.
1.4 RESEARCH METHODOLOGY
The methodology for this research paper is primarily
qualitative. It is based on the secondary data and
primary data derived from books, journals, articles,
websites, academic publications in where the
relevant informations about impact of fintech on
banking sectors is given. The qualitative approach
allows for a detailed exploration and interpretation of
the complex issues surrounding the fintech, including
its historical background, its impact on banking
sectors, regulatory challenges, and future financial
landscape.

1.5 SIGNIFICANCE OF THE STUDY

Fintech has revolutionized the whole financial
services industry by using latest innovative and
advanced technologies. By deploying these
technologies, it reshapes finance by improving
efficiency and quality of financial services delivered
and reducing the operational costs. Thus, the study
is considered to be an important to analyse the
technological growth in banking sector.
1.6 SCOPE OF THE STUDY

This study will focus on the impacts of Fintech on

banking industry. This study examines how the quality
of services in FinTech benefits the users. This study is
used to identify the different attractive products of
Fintech. This study also states about the speed,
convenience and simplicity in financial services.
1.7 LIMITATIONS OF THE STUDY
a) This study is qualitative in nature.
b) Whatever the data had been gathered is based on
suggestive study but not exhaustive study.