The Digital Financial Revolution: FinTech and Digital Banking as Catalysts for Banking Transformation — A Systematic Review of the Literature
DOI:
https://doi.org/10.35870/jemsi.v12i5.7050Keywords:
FinTech, Digital Banking, Banking Transformation, Systematic Literature Review, Bibliometric AnalysisAbstract
This study aims to analyze the role of financial technology (FinTech) and digital banking as catalysts for banking transformation in the era of the digital financial revolution. The main focus of this research is to explain how the development of financial technology and the digitalization of banking services drive changes in operational efficiency, service innovation, competitiveness, and financial inclusion. The study employs a quantitative-descriptive design using a systematic literature review approach combined with bibliometric analysis. The data used consist of secondary data in the form of indexed scientific articles published during the period 2020–2025 and obtained from reputable academic databases. Data collection was carried out through the process of identifying, selecting, and evaluating articles based on the PRISMA 2020 guidelines, while the analysis was conducted using descriptive statistics, thematic mapping, and thematic synthesis. The results show that FinTech and digital banking generally play a positive role in driving banking transformation, particularly through improved efficiency, accelerated service innovation, expanded financial access, and strengthened banks’ competitive positions. However, findings related to profitability and risk show mixed results, depending on the level of digital readiness, organizational capacity, and regulatory environment. This study concludes that digital transformation in banking is a strategic process determined not only by technology adoption, but also by the institution’s ability to adapt its business model and governance. These findings contribute theoretically by strengthening the literature on digital banking transformation and offer practical implications for banks and regulators in formulating adaptive strategies and policies.
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