The Impact of FinTech Collaboration on Bank Performance and Customer Trust

Abstract

The development of financial technology (FinTech) has brought significant changes in the banking industry, particularly through collaboration between traditional banks and FinTech companies. This collaboration creates opportunities for banks to expand access to services, improve operational efficiency, and strengthen competitiveness in the digital era. On the other hand, the success of the partnership is also highly determined by the level of customer trust in the products and services offered. This article aims to analyse the impact of FinTech collaboration on bank performance and customer trust through the Systematic Literature Review (SLR) approach using the PRISMA method. The results of the study show that FinTech collaboration contributes to increasing bank profitability, cost efficiency, and the development of digital service innovations. In addition, partnerships with FinTech are also able to build a positive perception of customers towards transparency, security, and convenience in transactions, thereby strengthening loyalty. However, there are also challenges in the form of data security risks, regulations that are not fully adaptive, and digital literacy gaps that can affect public trust. Thus, the success of FinTech collaboration is not only determined by technology strategies, but also by governance, regulation, and communication strategies of banks in maintaining customer trust. This article provides theoretical contributions in the banking management literature as well as practical implications for policymakers and the banking industry in designing sustainable collaboration strategies.