Abstract
<jats:p>The chapter explores the measurement and impact of FinTech adoption within the banking industry, presenting a structured methodology for constructing a FinTech Adoption Index (FAI) that integrates multiple dimensions such as digital presence, automation, open APIs, artificial intelligence, and FinTech partnerships. It examines how these digital innovations influence banks' profitability, operational stability, and institutional diversity across conventional, Islamic, foreign, and digital-only models. Empirical results demonstrate that higher FinTech maturity enhances efficiency and competitiveness but introduces governance and cybersecurity challenges. Through real-world cases from DBS Bank and the State Bank of India, the study validates the transformative potential of data-driven innovation in achieving sustainable financial performance and inclusive digital growth.</jats:p>