The Impact of Fintech on Traditional Banking Industry and Future Development Trends

Abstract

The booming development of financial technology has had a profound impact on the traditional banking industry. In terms of business model, the rise of innovative models such as online lending, supply chain finance and open banking has led to online and intelligent banking; customer experience has been significantly improved by intelligent customer service, personalised recommendations and mobile payment; and costs and efficiency have been optimised by automation and cloud computing. However, traditional banks are facing challenges such as market share erosion, increased operational and information security risks, and changes in the competitive landscape due to cross-border competition. Traditional banks have responded positively to these challenges by enhancing their competitiveness and sustainability through digital transformation, technological innovation and cooperation, and management and strategic adjustments. Looking ahead, fintech will continue to advance in technological innovation, the popularisation of smart financial services, open banking and the development of the API economy, and financial regulation will continue to be strengthened, so traditional banks will need to embrace change and strengthen compliance, so as to achieve mutual promotion and synergistic development with fintech, and to jointly promote the progress of the financial industry and the high-quality development of the economy.