{"id":22533,"date":"2019-08-01T11:35:01","date_gmt":"2019-08-01T06:05:01","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=22533"},"modified":"2019-12-19T12:45:31","modified_gmt":"2019-12-19T07:15:31","slug":"impact-of-financial-technology-on-indian-economy","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/impact-of-financial-technology-on-indian-economy\/","title":{"rendered":"Impact of Financial Technology Companies on Indian Economy"},"content":{"rendered":"<p class=\"has-drop-cap\">Fintech stands for the combination of &ldquo;<strong>Financial Technology<\/strong>&rdquo;, 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. <a href=\"https:\/\/enterslice.com\/\"><strong>Fintech<\/strong><\/a> makes use of technology crypto-currencies such as bitcoin.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Significance of Financial\nTechnology Companies<\/h2>\n\n\n\n<p><strong>Financial technology can be used in the following ways:<\/strong><\/p>\n\n\n\n<ul><li>It is an innovative technique that is used for the invention of digital money.<\/li><li>It also can be used for double-entry bookkeeping<\/li><li>Fintech originally referred to as computer technology, is now widely used at the back offices of banks or trading firms.<\/li><li>Fintech now is being used for various financial activities like bank transfers, a deposit of check via smartphones, apply for credit, raising funds for business start-ups, etc.<\/li><li>Awareness of the use of fintech is being increased and is popular nowadays. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Scope of Activities Using Fintech<\/h2>\n\n\n\n<p>The scope of work of these technologies has been\nincreasing in a broad range. It covers from traditional banking activities to mortgage\nand trading activities.<\/p>\n\n\n\n<ul><li>Fintech Services are cost-efficient as they combined streamlined offerings with Innovative Technology.<\/li><li>With the help of these technologies, financial service which was earlier under the branches, desktop and salesmen are now mobile and moves freely on laptops and mobile phones.<\/li><li>&lsquo;Robinhood&rsquo; charges no fees for trades. It&rsquo;s the mobile app for trading.<\/li><li>Kabbage, Lendio, Accion, etc are the business loan providers that offer and help a startup or established entity easy, smooth and quick way of securing loans and credit. <\/li><li>Technologies like machine learning, predictive behavior analytics, help users to make an informed decision about their savings, spending by learning the habits of users.<\/li><\/ul>\n\n\n\n<p><\/p><h3><b>Read our Recommendation:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/enterslice.com\/learning\/fintech-hot-nbfc-registration\/\">Fintech is Hot: All about <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;NBFC&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Non-Banking Financial Companies (NBFC) operate similarly to banks but do not possess the legal status of a bank. Registered under the Companies Act 2013 and governed by the RBI Act&amp;#039;s section(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/nbfc\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>NBFC<\/a> Registration<\/a><\/mark>.<\/h3>\n\n\n\n<h2 class=\"wp-block-heading\">Active Areas of Fintech Innovation<\/h2>\n\n\n\n<p><strong>Fintech Innovation revolves around the following areas:<\/strong><\/p>\n\n\n\n<ul><li>Crypto-currency <\/li><li>Digital money<\/li><li>Blockchain technology<\/li><li>Distributed Ledger Technology (DLT)<\/li><li>Automatic execution of contracts between buyers and sellers using smart contracts.<\/li><li>Third parties should have access to Bank data so that connected network of financial institutions and the third-party provider is created using a concept of Smart Contracts.<\/li><li>For the streamline and simplification of insurance services, there is a fintech technology named Insurtech.<\/li><li>Regtech covers <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Anti-Money Laundering&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In an increasingly complex global financial landscape, combating financial crimes like money laundering has become paramount. Anti-Money Laundering (AML) is a comprehensive framework of(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/anti-money-laundering\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>Anti-Money Laundering<\/a> and KYC to safeguard and protect from fights.<\/li><li>Robo-Advisors using algorithms automate investment advice by lowering the cost and increasing the benefits.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Users of Fintech Technology<\/h2>\n\n\n\n<p><strong>Following are the broad two categories of users of Fintech Technology:<\/strong><\/p>\n\n\n\n<ol><li><strong>B2B (BUSINESS\nTO BUSINESS):<\/strong><\/li><\/ol>\n\n\n\n<p>Before an era of Fintech Technology, businesses\nneed to move to banks for obtaining loans and finance. However, with these\ntechnology businessmen can obtain loans easily through one click using mobile\ntechnology.<\/p>\n\n\n\n<p>Many Customer Relationship Management Companies\nand cloud-based platforms are also using Fintech technology to provide B2B\nservices.<\/p>\n\n\n\n<ol><li><strong>B2C\n(BUSINESS TO CLIENTS):<\/strong><\/li><\/ol>\n\n\n\n<p>Fintech has a good base of customers serving B2C\napplications. Money Apps such as PayPal, Google Pay, Apple Pay, etc uses these\ntechnologies that allow its clients or customer to transfer money through the\ninternet on mobile phones. Also, there are certain apps help their customer to\nmanage their finances and expenses.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/07\/fintech-technologies.png\" alt=\"Financial Technology\" class=\"wp-image-22550\" width=\"428\" height=\"397\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/07\/fintech-technologies.png 798w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/07\/fintech-technologies-300x279.png 300w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/07\/fintech-technologies-768x713.png 768w\" sizes=\"(max-width: 428px) 100vw, 428px\"\/><figcaption>fintech<\/figcaption><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Revolution of Fintech in India<\/h2>\n\n\n\n<p>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&rsquo;s Collaboration between Technology and Financial service that has led to a change in tradition operations of banking, investment, trading, etc.&nbsp; 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. <\/p>\n\n\n\n<p>In the recent 5 years, it has become one of the\nmost economical sectors. It has a huge fund base and investments from big\nplayers in the Indian <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Market&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;A market is a structured environment, either physical or virtual, where buyers and sellers convene to trade goods and services. This trading hub operates based on the principles of supply and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/market\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>market<\/a> such as Google and Whatsapp. Indigenous firms play\na significant role in the development of industries including Paytm, Phonepe,\nMobikwik, and Free charge.<\/p>\n\n\n\n<p>There was a report in the year 2017 by the\nNational Association of Software and Services Companies (NASSCOM) that 400\nFintech Companies has started operating in India. There was a boost in Indian\nFintech Companies by a large number of foreign investments.<\/p>\n\n\n\n<div class=\"form-blog-2\">\n\n<h2>Fintech Report 2020<\/h2>\n\n<p>Complete overview of the World Fintech Industry<span class=\"text-orange\"><strong><\/strong><\/span><\/p>\n\n<a class=\"btn-callback-blog input-tr-blog mt-3\" href=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/ebook\/fintech-report-2020.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Download<\/a>\n\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Impact of Fintech on Financial Sector of India<\/h2>\n\n\n\n<p>Fintech helps in the scope of activities of the\nfinancial sector on digital platforms. With the rise of Innovation and\ntechnology, Fintech has affected Banking and Financial Sector of India in the\nfollowing ways:<\/p>\n\n\n\n<ul><li><strong>Loans<\/strong>: There is a huge transformation in the methods of operating of Banks. Nowadays, there is a new market for the Lending-based market. <a href=\"https:\/\/en.wikipedia.org\/wiki\/Loans\">Loans<\/a> and similar advances can be easily availed by a consumer.<\/li><li><strong>Payments<\/strong>: Payments are easily made online through the internet via mobile phones. Online payments are the key benefits of online shopping these days. Also, money can be transferred easily from one Bank Account to another with a lesser amount of transaction fees and also chances of fraud are minimized.<\/li><li><strong>Fund Management: <\/strong>With the emergence of this technology, there are lots of changes in the habits and ways in which consumers are saving money, investing or managing their assets. A company aims to provide complete solutions for investment and savings. Fintech Software also helps in choosing the best investment by giving an option to compare.<\/li><li><strong>Remittance:<\/strong> Initially there was a struggle with traditional remittances that were expensive, complicated and time-consuming. With the help of Fintech Companies, these inbound and outbound transactions are simple, easy and affordable.<\/li><li><strong>Insurance Services: <\/strong>One can acquire Insurance online with all the customized plans and details available. Every process is now paperless and cashless starting from applying the payment of premium.<\/li><li><strong>Equity-Funding: <\/strong>Through these technologies, new Project Ventures and Business can raise the fund in the form of Equity from a large number of people.<\/li><\/ul>\n\n\n\n<p><\/p><h3><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/enterslice.com\/learning\/nbfcs-leveraging-fintech-to-build-a-customer-centric-business-model\/\">NBFCs Leveraging Fintech to Build a Customer-Centric Business Model<\/a><\/mark>.<\/h3>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<p>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, <a href=\"https:\/\/enterslice.com\/learning\/asset-management\/\">Investment Management<\/a>, Fund Management, Banking, and Insurance. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What preparations have been done to make Fintech a\nsuccess in India?<\/h3>\n\n\n\n<p>An Internal Task Force on Financial Technology\nwas set up by the Commission, to prepare SWAT analysis to address potential\nopportunities and challenges faced by Fintech. The Commission discussed with\nstakeholders to gather their views and information on the impact this\ntechnology will have on financial services.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is Blockchain?<\/h3>\n\n\n\n<p>Blockchain is known for the best ledger\ntechnology. Ledgers are the databases that are prepared in the Companies, to\nkeep the records of each transaction.&nbsp;\nBlockchain helps in storing ledger across the network base and avoids\nany centralized location and intermediaries.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How Demonetization has affected Financial\nTechnology in India?<\/h3>\n\n\n\n<p>In developing nations like India, Fintech\nstartups have great potential for growth. Due to Demonetization, the digital\nmovement has been transformed into a reality encouraging consumers to go\ncashless, due to which Fintech has widely emerged in the financial markets of\nIndia.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fintech stands for the combination of &ldquo;Financial Technology&rdquo;, 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 [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":22549,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1174],"tags":[2631],"acf":{"service_id":"215"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Impact of Financial Technology Companies on Economy of India<\/title>\n<meta name=\"description\" content=\"Financial technology Software and Algorithm are used to simplify the process of financial services for Business users, Consumers, and Companies.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/impact-of-financial-technology-on-indian-economy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Impact of Financial Technology Companies on Economy of India\" \/>\n<meta property=\"og:description\" content=\"Financial technology Software and Algorithm are used to simplify the process of financial services for Business users, Consumers, and Companies.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/impact-of-financial-technology-on-indian-economy\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2019-08-01T06:05:01+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-12-19T07:15:31+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/07\/Impact-of-Fintech-Companies.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Narendra Kumar","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/nk-1.jpg","authorDescription":"Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.","postViews":482,"readingTime":5,"nextPost":{"id":22531,"slug":"manage-inventory-reduce-working-capital"},"prevPost":{"id":22536,"slug":"advantages-of-one-person-company"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/07\/Impact-of-Fintech-Companies.jpg","postTerms":"Fintech","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/22533"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=22533"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/22533\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/22549"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=22533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=22533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=22533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}