Modern Economics & Management Forum

Under the rapid development of the digital economy, financial technology is disrupting the traditional banking industry with rapid innovation and technology application. Traditional banks have always been the core of the financial system, but with the rise of technologies such as the Internet, mobile payments and blockchain, the core functions of banks are being challenged. FinTech, with its flexibility and technological advantages, has made significant progress in areas such as payments, lending and wealth management, transforming the delivery of financial services and triggering changes in customer behavior and expectations. Traditional banks are under pressure to digitally transform themselves, while also needing to address new regulatory and security challenges. To survive and continue to play a role in this change, traditional banks need to partner with fintechs to develop new business models and innovative products. By analyzing the disruptive impact of FinTech on traditional banking services, this paper discusses the future development trends and adaptation strategies of the banking industry, aiming to provide theoretical and practical references for the industry.