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Fintech stands for the combination of “Financial Technology”, which are the technique and innovation methods of delivering financial services. These technologies are competing with traditional methods of providing financial services. This technology is used to improve and automate financial services. Specialized Software and Algorithm are used to simplify the process of financial services for Business users, Consumers, and Companies. Fintech makes use of technology crypto-currencies such as bitcoin.
Financial technology can be used in the following ways:
The scope of work of these technologies has been increasing in a broad range. It covers from traditional banking activities to mortgage and trading activities.
Fintech Innovation revolves around the following areas:
Following are the broad two categories of users of Fintech Technology:
Before an era of Fintech Technology, businesses need to move to banks for obtaining loans and finance. However, with these technology businessmen can obtain loans easily through one click using mobile technology.
Many Customer Relationship Management Companies and cloud-based platforms are also using Fintech technology to provide B2B services.
Fintech has a good base of customers serving B2C applications. Money Apps such as PayPal, Google Pay, Apple Pay, etc uses these technologies that allow its clients or customer to transfer money through the internet on mobile phones. Also, there are certain apps help their customer to manage their finances and expenses.
With the evolution of this technology, the entire industry of financial services, financial products, and financial procedures has changed and improved a lot in a few decades. There is a great transformation in the methods and ways of working of the financial institutions. It’s Collaboration between Technology and Financial service that has led to a change in tradition operations of banking, investment, trading, etc. In India, people are mostly cash-driven. With the innovative ideas of Fintech, there is a step towards creating a cashless society. Fintech has a huge impact on how people handle their money and to change the ways of carrying their daily transactions.
In the recent 5 years, it has become one of the most economical sectors. It has a huge fund base and investments from big players in the Indian market such as Google and Whatsapp. Indigenous firms play a significant role in the development of industries including Paytm, Phonepe, Mobikwik, and Free charge.
There was a report in the year 2017 by the National Association of Software and Services Companies (NASSCOM) that 400 Fintech Companies has started operating in India. There was a boost in Indian Fintech Companies by a large number of foreign investments.
Complete overview of the World Fintech IndustryDownload
Fintech helps in the scope of activities of the financial sector on digital platforms. With the rise of Innovation and technology, Fintech has affected Banking and Financial Sector of India in the following ways:
With the emergence of digital and online trends, segments of payment have undergone a vast change. Earlier were the days when for withdrawing the money in ATMs one has to line up. Now on with the help of online apps easy and fast payment can be made from anywhere to anyone. Various segments covered by Fintech Technology in India are Digital Payments, availability of Loans, Investment Management, Fund Management, Banking, and Insurance.
An Internal Task Force on Financial Technology was set up by the Commission, to prepare SWAT analysis to address potential opportunities and challenges faced by Fintech. The Commission discussed with stakeholders to gather their views and information on the impact this technology will have on financial services.
Blockchain is known for the best ledger technology. Ledgers are the databases that are prepared in the Companies, to keep the records of each transaction. Blockchain helps in storing ledger across the network base and avoids any centralized location and intermediaries.
In developing nations like India, Fintech startups have great potential for growth. Due to Demonetization, the digital movement has been transformed into a reality encouraging consumers to go cashless, due to which Fintech has widely emerged in the financial markets of India.