Analyzing the Role of Fintech Disruption and Artificial Intelligence-Driven Solutions in Reshaping Traditional Banking Business Models and Customer Engagement Strategies

Constantine Rafail Lambros

Authors

Constantine Rafail Lambros Investment Banker, Author

Keywords:

Fintech, Artificial Intelligence, Banking Disruption, Customer Engagement, Business Model Innovation, Digital Transformation, Financial Services, Customer Experience.

Abstract

The financial services sector has witnessed massive technological disruption, with fintech and artificial intelligence (AI) at the forefront. As of 2022, traditional banking institutions are experiencing intensified competitive pressure to transform legacy business models and enhance customer engagement through digitization. This paper explores how fintech innovation and AI-driven solutions are reshaping the banking landscape, analyzing historical perspectives, key transformations, and the anticipated future directions. It offers quantitative evaluations using data trends, proposes a structural interpretation of customer experience advancements, and suggests strategies for sustainable integration.

References

Arner, Douglas W., Janos Barberis, and Ross P. Buckley. "The Evolution of Fintech: A New Post-Crisis Paradigm?" Georgetown Journal of International Law, vol. 47, no. 4, 2015, pp. 1271-1319.

Biru, S. (2025). Revolutionizing Investment Banking: AI Integration in Middle Office Operations. International Research Journal of Modernization in Engineering, Technology and Science, 7(2), 850–857. https://doi.org/10.56726/IRJMETS67333

Gomber, Peter, et al. "On the Fintech Revolution: Interpreting the Forces of Innovation, Disruption, and Transformation in Financial Services." Journal of Management Information Systems, vol. 35, no. 1, 2017, pp. 220-265.

Biru, S. (2025). AI-Powered Deduplication in Investment Banking Middle Office. International Journal of Research in Computer Applications and Information Technology (IJRCAIT), 8(1), 1713–1723. https://doi.org/10.34218/IJRCAIT_08_01_125

Vasiljeva, Tatjana, and Gunta Lukanova. "Commercial Banks and Fintech Companies in the Digital Transformation: Challenges for the Future." Journal of Business Management, vol. 11, 2016, pp. 25-34.

Chen, Mao, et al. "Artificial Intelligence in FinTech: Understanding the Impact of Emerging Technologies." Financial Innovation, vol. 5, no. 1, 2019, pp. 1-16.

Puschmann, Thomas. "Fintech." Business and Information Systems Engineering, vol. 59, no. 1, 2017, pp. 69-76.

Biru, S. (2025). Intelligent Automation in Banking Operations: Impact Analysis on Renewable Energy Investment Assessment. International Journal of Computer Engineering and Technology (IJCET), 16(1), 673–687. https://doi.org/10.34218/IJCET_16_01_056

Milian, Esteve Almirall, Maria de Spinola, and Raul Valverde de Carvalho. "Open Banking: How to Design for a Platform Model in the Banking Industry." Communications of the Association for Information Systems, vol. 44, 2019, pp. 755-774.

Biru, S. (2025). Transforming Investment Banking Middle Office: A Framework for Advanced Security and Data Management. International Journal of Scientific Research in Computer Science, Engineering and Information Technology, 11(1), 608–616. https://doi.org/10.32628/CSEIT25111268

Omarini, Anna Elena. "Banks and Fintechs: How to Develop a Digital Open Banking Approach for the Bank’s Future." International Business Research, vol. 11, no. 9, 2018, pp. 23-38.

Frost, Jon. "The Economic Forces Driving Fintech Adoption Across Countries." Bank for International Settlements Papers, no. 106, 2020.

Haddad, Christian, and Lars Hornuf. "The Emergence of the Global Fintech Market: Economic and Technological Determinants." Small Business Economics, vol. 53, no. 1, 2019, pp. 81-105.

Nicoletti, Bernardo. The Future of FinTech: Integrating Finance and Technology in Financial Services. Palgrave Macmillan, 2017.

Philippon, Thomas. "The FinTech Opportunity." NBER Working Paper Series, no. 22476, 2016.

Zetzsche, Dirk A., et al. "From FinTech to TechFin: The Regulatory Challenges of Data-Driven Finance." University of Hong Kong Faculty of Law Research Paper, no. 2017/111.

Gai, Kaiyuan, Meikang Qiu, and Hui Zhao. "Security-Aware Efficient Mass Data Storage for Cloud Computing." Information Sciences, vol. 387, 2017, pp. 219-230.

Drasch, Benedikt J., Patrick Schweizer, and Lars Urbach. "Integrating the ‘Troublemakers’: A Taxonomy for Cooperation between Banks and Fintechs." Journal of Economics and Business, vol. 100, 2018, pp. 26-42.

Zhang, Teng, and Shouyang Wang. "Artificial Intelligence in Customer Service." Journal of Service Research, vol. 23, no. 3, 2020, pp. 390-408.