<p>This study delves into the concept of digital transformation within the financial services industry and its effects on traditional banking and customer experiences. Through a comprehensive analysis of existing literature, the research identifies key trends, challenges, and implications of digital transformation for financial institutions and consumers. Furthermore, the study investigates the potential implications of Open Banking and Banking as a Service (BaaS) models on competition and innovation in the financial services market. The current literature review shows that traditional banks should accelerate their adoption of digital technologies to face the growing competition from digital disruptors in the financial services market. Besides, the present study indicates that although open banking and BaaS pose risks to traditional banks and their direct customer relationships, these models can also provide banks with opportunities to monetize their infrastructure, create new revenue streams, and expand their market presence through partnerships with fintech firms and big-tech companies. A strategic partnership with fintech firms and big-tech companies can help banks retain clients who might otherwise switch their banking activities to digital competitors.</p>