This chapter will explore the impact of digitalization on financial services resulting from the constantly changing environment, driven by the emergence of the internet, mobile phones, new regulations, and COVID-19. Digitalization has led to the rise of new players (Fintechs) in the banking arena, forcing traditional banks to choose between cooperation and competition. Many banks have decided to cooperate with Fintech companies to remain competitive due to their lack of knowledge of the new technology and the risk of long-term investments. New cooperation models have emerged, such as partnerships with Fintech, which have improved financial products and led to the emergence of new business models like the sharing economy, embedded finance, or the implementation of blockchain technology. This highlights the significant impact of Fintech companies on the digital transformation in the emerging financial ecosystem.