A Systematic Review of Fintech and Banking: Motivations, Challenges and Recommendations

Abstract

Financial technology (Fintech) refers to innovations driven by technology that have rapidly transformed the financial landscape, contributing significantly to global economic growth. While countries like the United States and China have experieced substantial Fintech advancements, regions such as Western Europe, Eastern Asia, and the Middle East are still in the process of fully integrating these technologies. Despite Fintech’s expanding global influence, academic research remains limited in comprehensively exploring its benefits, motivations, challenges, and practical recommendations. This study conducts a systematic review to better understand the current research landscape, aiming to address the primary question: What are the key motivations, challenges, and recommendations for Fintech adoption in the banking sector? A structured literature search was performed across the Web of Science and Scopus databases, covering publications from October 2021 to May 2022. The review investigates various Fintech applications across diverse banking contexts and regions, identifying core themes including drivers of Fintech adoption, obstacles to its implementation, and disparities in its regional adoption. Furthermore, the study provides valuable insights and strategic recommendations for both academics and policymakers to promote broader acceptance and effective implementation of Fintech innovations in the financial sector.