THE IMPACT OF FINTECH SERVICES ON THE BANKING SYSTEM AND BUSINESS ENTITIES: OPPORTUNITIES AND RISKS

The rapid expansion of financial technologies (FinTech) has significantly transformed the structure and functioning of the modern financial system. This study investigates the impact of FinTech services on the banking sector and business entities, focusing on both opportunities and associated risks. FinTech innovations, including digital payments, peer-to-peer lending, blockchain, and mobile banking, enhance financial accessibility, reduce transaction costs, and improve operational efficiency. However, they also introduce new challenges such as cybersecurity threats, regulatory gaps, and market volatility. The research applies a mixed-method approach, combining quantitative data analysis with qualitative insights from industry experts. The findings indicate that FinTech services foster competition, promote financial inclusion, and support entrepreneurial growth. At the same time, inadequate regulatory frameworks and technological risks may undermine financial stability. The study concludes that a balanced integration of FinTech within traditional banking systems is essential to maximize benefits while mitigating potential threats.