Fintech, or financial technology, is transforming the financial services industry by integrating AI, block chain, and digital banking solutions to enhance efficiency, security, and accessibility. It has evolved from backend banking technologies to consumer-focused applications such as digital lending, open banking, and financial inclusion. In India, fintech is driving innovations like AI-driven fraud detection, block chain for secure transactions, and expanding financial services to underserved populations. Future trends indicate continued growth in digital payments, alternative credit scoring, and AI-powered personalization, making fintech a key player in modern financial systems. The impact of fintech on the banking sector has been transformative, pushing traditional banks to adopt digital transformation strategies, enhance customer experiences, and develop innovative financial products. Fintech start-ups have introduced competition, forcing banks to lower costs and improve efficiency. Many traditional banks are responding by partnering with fintech firms, leveraging big data for decision-making, and expanding digital offerings to stay competitive. However, challenges such as regulatory concerns, cyber security threats, and the need for financial literacy remain significant. Despite these challenges, fintech is playing a crucial role in financial inclusion, making banking services more accessible to rural and unbanked communities worldwide.