This study aims to examine how FinTech adoption reshapes bank liquidity creation under digital financial transformation. It identifies the mechanisms linking FinTech to liquidity outcomes and the key limitations that keep the FinTech–liquidity literature fragmented.
A systematic literature review was conducted using the PRISMA framework and Scopus database up to 2025. From 5,313 initial records, 22 empirical articles were retained after screening and eligibility assessment and analyzed through structured coding and descriptive bibliographic mapping using VOSviewer and Biblioshiny.
The review identifies four mechanisms linking FinTech to bank liquidity creation: information enhancement, process efficiency and funding reconfiguration, risk moderation and liquidity hoarding, and competition-driven market restructuring. FinTech does not exert a uniform effect on liquidity creation; its effects are contingent, mechanism-dependent, and institutionally mediated. It may increase, reduce, or redistribute liquidity creation across different market and regulatory conditions. The literature remains geographically concentrated, relies on heterogeneous proxy-based FinTech measures, and shows uneven causal identification.
The study calls for theories that conceptualize FinTech as a strategic capability and better account for institutional conditions, competition, regulation, and bank-level capabilities.
The findings help banks align digital strategies with liquidity management and risk governance, while guiding regulators to balance digital financial innovation with financial stability.
This review offers an article-level mechanism synthesis that explains why FinTech may increase, reduce or redistribute bank liquidity creation. It also positions FinTech-enabled liquidity creation within innovation-science debates and develops a focused agenda for future research.
