Financial institutions and FinTech companies use modern technological solutions to improve their products and customer service more than ever before. Although FinTech has gone through several development phases, the last two years have seen the most significant progress in digitization and the use of new technologies due to the consequences of the Covid 19 pandemic on society. Due to the quarantine, ban on mass gatherings and the need for physical distance, the number of companies, among and financial institutions, have partially or fully digitized their operations. However, Covid 19 is only one of the factors influencing the digitization and technological progress of financial institutions. Another reason is changes in lifestyle and consumer behavior. The average consumer today is educated, informed, internet literate and buys what he wants, not just what is offered to him. Accordingly, financial institutions have adapted to market trends and focused a big part of their business on internet and mobile banking, which is available to users 24 hours a day in any location. On the other hand, an increasing number of FinTech start-ups are founded every day, which use technology to develop completely new products and services in financial business. In doing so, they use big data analysis, artificial intelligence, machine learning, blockchain and other technologies that enable them to analyze and understand the current and predict future consumer behavior, then develop products, applications and software that will improve the efficiency and transparency of work and lower business costs and enable protection of users and companies from various frauds and cyber attacks. Although at first impression it can be concluded that FinTech companies are fierce competition to traditional financial institutions, especially banks, this is not entirely true. During the research in this paper, it was established that numerous FinTech companies use their innovative solutions to win over clients of banks, insurance companies, investment funds, etc. and make them their clients, however, there is a whole range of others who develop FinTech solutions and sell them to established financial institutions or enter into cooperation to jointly offer financial products and services based on the latest technologies. In this way, mutual benefits are achieved, as well as benefits for the end users. Traditional financial institutions get access to innovations, which enable them to achieve competitive advantages and raise the level of customer service, while FinTech companies entering this form of cooperation do not have to look for customers for their product, but immediately use the existing pool of customers from the financial institution they cooperate with. And finally, the end users are the ones who profit the most because they get a wider range of payment options, get loans more easily and simply, are offered personalized products and services, etc. Regardless of the amount of literature sources used during the preparation of the paper, it can be safely concluded that FinTech is still an under-researched topic, and the main reason for this is the fact that the FinTech industry is constantly developing and progressing, and every day an increasing number of innovations are placed on the market. in the field of financial products and services.