The Rise of FinTech: A Study on the Disruption of Traditional Banking Models by UPI and Digital Wallets in the Indian Financial Ecosystem
Jayamma
Research Scholar, Vijayanagara Sri Krishnadevaraya University, Ballari
Keywords: FinTech, Unified Payments Interface (UPI), Digital Wallets, Financial Inclusion, Banking Disruption, India.
Abstract
The fast growth of Financial Technology, or FinTech, has changed the way financial services work all over the world. In India, this change is very clearly seen, mainly because of UPI and the wide use of digital wallets. As we all know, today almost everyone uses mobile payments in daily life. This study looks at how these new systems have affected the old style of banking in our country. The paper uses simple study methods and some data to understand how payment systems have changed, how banks are adjusting their work, and what this means for society. The results show that UPI and wallets have reduced the extra fee income of banks, but at the same time they have helped banks work faster and move more towards digital systems. It is also seen that public banks and private banks are responding in different ways, which affects their performance. Most importantly, these digital tools have helped more people join the formal banking system, which is a big step for India. In the end, the study shows that FinTech growth in India is not only because of the market, but also because of government support, and it has changed banks from controllers to supporters in this new digital financial system.
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Published
01-03-2026