THE INDUCTION OF FINTECH PLATFORMS IN TRADITIONAL BANKING AND ITS EFFECT ON BANK’S PERFORMANCE WITH THE MEDIATING ROLE OF CUSTOMER SATISFACTION

Abstract

The global banking sector is still undergoing change due to the expanding influence of financial technology, or fintech, particularly in the area of risk management. Due to the growing impact of financial technology, or fintech, especially in the field of risk management and customer satisfaction, the global banking industry is still undergoing change. Using customer satisfaction as a mediating variable, this study attempts to assess how fintech adoption affects risk aversion and a bank's overall performance in Pakistan's traditional banking sector. The operational, credit, and market risks of a bank are examined in this study. The study found that while adopting fintech raises risks, a bank's image and customer satisfaction are safeguarded by providing excellent customer service and promptly resolving issues. Recent empirical research from Pakistan's banking sector forms the basis of this study, and the report discusses many risk management measures for a digital banking model.