Abstract:
The rise of FinTech has significantly influenced traditional banking, especially in emerging markets. This study focuses on examining how FinTech impacts conventional banking systems, particularly in enhancing financial inclusion, operational efficiency, and customer engagement. Using Meezan Bank, Pakistan’s first and only Islamic bank, as a case study, the research investigates how concepts like mobile banking, blockchain, and peer-to-peer lending can merge with Islamic banking principles to address the challenges faced by developing markets. The paper discusses current trends, challenges, and opportunities within the global FinTech landscape while offering recommendations for integrating FinTech into traditional banking systems. Findings highlight FinTech’s potential to stimulate economic growth, assist small and medium-sized enterprises (SMEs), and improve financial services, while also addressing challenges related to regulatory, cultural, and infrastructural issues. It is suggested that fostering collaboration between regulators and financial institutions, investing in adaptable and scalable technologies, and prioritizing customer needs during digital transformation are essential. This research provides insights into the future role of FinTech in Islamic banking and developing countries.
