IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 10 NO. 6 2024
DOI: 10.56201/ijbfr.v10.no6.2024.pg83.100

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Impact of Fintech Innovations on Banking Strategies and Customer Experience

Oloto, Ngozi U.

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Abstract

This study examines the impact of fintech innovations - digital payments, blockchain, robo- advisors, and artificial intelligence—on traditional banking strategies and customer experience, based on a survey of 385 respondents. The survey results indicate that Digital Payments are the most influential fintech innovation, with 36.4% of respondents highlighting their significant impact on banking strategies. Artificial Intelligence follows with 22.1%, and Robo-Advisors and Blockchain are noted by 20.8% and 16.9% of respondents, respectively. In terms of customer experience, 46.8% of respondents reported increased satisfaction due to fintech innovations, while only 7.8% experienced decreased satisfaction. The study also identifies key challenges in integrating fintech innovations: Regulatory Compliance (33.8%) and Data Security (31.2%) are the primary concerns, with System Integration being a challenge for 19.5% of respondents. Despite some respondents viewing regulatory compliance management as effective (29.9%) or very effective (20.8%), there are ongoing concerns about data protection and system integration. The study concludes that while fintech innovations provide substantial benefits, addressing these integration challenges is critical. Recommendations include strengthening regulatory compliance frameworks, enhancing data security measures, and investing in better system integration and staff training to fully leverage fintech advancements.

keywords:

Fintech Innovations, Banking Strategies, Customer Experience, Digital Transformation, Financial Technology, Blockchain Technology & Artificial Intelligence.

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