The Role of FinTech in the Modern Banking Industry: Analyzing its Impact with Machine Learning Models

Financial technology (FinTech) has rapidly redefined the global banking landscape, providing both new opportunities and challenges. Traditional banks, long reliant on brick-and-mortar infrastructure and outdated technologies, have faced increasing competition from FinTech companies that leverage cutting-edge technologies, particularly machine learning (ML), to enhance services such as credit scoring, fraud detection, and customer service. This paper analyzes the significant role that FinTech plays in the modern banking industry. It explores how machine learning models are applied in key areas, providing detailed analyses supported by actual data, equations, and graphical representations. The findings suggest that FinTech firms, through their integration of machine learning, outperform traditional banking institutions in several key metrics, positioning them as leaders in the financial services market. DOI - https://doi.org/10.65525/SVUP.9788199651531.2026.40-49.