2025, Vol. 6, Issue 1, Part B
The rise of fintech startups: How fintech startups affect traditional banks
Author(s): Lovely Kumari
Abstract: The rise of fintech startups has revolutionized the financial services industry, presenting both challenges and opportunities for traditional banks. Fintech companies leverage cutting-edge technologies such as blockchain, artificial intelligence (AI), and machine learning to deliver innovative solutions, ranging from digital wallets and payment gateways to peer-to-peer (P2P) lending and robo-advisory services. By offering seamless, cost-effective, and user-friendly experiences, fintech startups have disrupted the monopoly of traditional banks in financial services. One major impact of fintech startups is their ability to address inefficiencies in legacy banking systems. Traditional banks often face challenges such as slow processes, high operational costs, and limited accessibility, particularly in rural or underserved areas. Fintech startups, on the other hand, focus on customer-centric approaches, enabling faster transactions, personalized financial solutions, and 24/7 access via digital platforms. Companies like PayPal, Stripe, and Square have transformed payment systems, while platforms like LendingClub and Robinhood have redefined lending and investment landscapes. Moreover, the emergence of fintech has intensified competition, compelling traditional banks to innovate and adopt digital-first strategies. Many banks have embraced digital transformation by launching mobile apps, upgrading core banking systems, and collaborating with fintech firms through strategic partnerships. For instance, traditional institutions now offer integrated services such as mobile wallets and real-time payment systems to keep pace with consumer demands.
Pages: 154-162 | Views: 136 | Downloads: 53
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How to cite this article:
Lovely Kumari. The rise of fintech startups: How fintech startups affect traditional banks. Asian J Manage Commerce 2025;6(1):154-162.
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