Rimjhim Shukla¹, Banothu Mounika², Enugurthi Akshay³, Dupati Sai Kiran Raju⁴, Mamidipally Sravani⁵, A. Jyothsna⁶ 02 11 The rapid proliferation of financial technology FinTech innovations is fundamentally reshaping the structure competitive dynamics and customer engagement models of the global banking industry Digital payments peertopeer lending roboadvisory blockchainbased settlements artificial intelligencedriven credit scoring and embedded finance are dismantling traditional banking value chains and compelling incumbent institutions to accelerate digital transformation or risk structural displacement This paper examines the nature and scope of FinTech innovations their measurable impact on traditional bank performance metrics customer acquisition patterns and revenue model sustainability A mixed secondaryprimary methodology is employed secondary data is drawn from RBI annual reports World Bank FinTech publications KPMG Global FinTech Pulse surveys and industry databases for the period 201924 primary data is collected through a structured questionnaire administered to 100 respondents comprising bank customers and banking professionals in Hyderabad Telangana Findings reveal that digital payment FinTechs have eroded traditional bank payment fee revenues by an estimated 1822 while open banking APIs and embedded finance are enabling new revenue streams Net Interest Margins at major Indian private banks have remained resilient partly through FinTech colending partnerships Customer satisfaction with FinTechintegrated banking services is significantly higher mean 421 than with traditional branchonly services mean 304 The study recommends strategic FinTech collaboration regulatory sandbox participation and AIdriven personalization as the optimal response framework for incumbent banks navigating the FinTech disruption cycle Copyright (c) Journal of Science Engineering Technology and Management Science. All rights reserved 2026