Fintech is an industry comprising companies that deliver financial services using technology. The emergence of fintech was influenced by increasing mobile internet penetration and preferences of the current generation for digital financial services. Fintech startups are disrupting traditional banks by offering cheaper services online and through mobile apps. While banks are forming partnerships with fintech companies, fintech still only accounts for a small portion of financial transactions globally, representing significant growth potential for the industry. The fintech market in India and globally has grown rapidly in recent years and is predicted to continue expanding through partnerships between banks and fintechs and the adoption of new technologies.
FinTech: The revolution is here!
In this session, we will introduce fintech and discuss the eight key innovations in fintech that are revolutionizing how companies are doing business. This session is geared towards fintech enthusiasts and financial industry professionals who are intrigued and fascinated by the innovations in fintech and would like to learn and adapt to the new realities of the 21st century
The presentation involves about Fintech industry, the technologies involved, various UPI's, regulators of Fintech Industry in India and Payment Sytstem in India
Use of Articificial Intelligence and technologies in providing financial services is what fintech does. Whether it is Payment gateway, insurance, banking, lending, stock trading, taxes.
How Fintech evolved over the years in the World and Indian Economy.
Indian Fintech Companies under different categories
Common Fintech practices adopted by Fintech Companies with better flexibility, convenience and accessibile financial products and services
Fintech and Transformation of the Financial Services IndustryRobin Teigland
Slides from our FinTech day as part of the Entrepreneurship & Innovation Concentration in the Stockholm School of Economics Exec MBA program in Stockholm, Sweden.
Was recently invited to share my thoughts on fin-tech with the board of a top 5 bank in India. While Indian banks have several challenges, I was impressed by this board's disruption awareness and desire to embrace technological change. It was a good discussion. Here is an edited version of that presentation (removed a few non-public info slides).
FinTech: The revolution is here!
In this session, we will introduce fintech and discuss the eight key innovations in fintech that are revolutionizing how companies are doing business. This session is geared towards fintech enthusiasts and financial industry professionals who are intrigued and fascinated by the innovations in fintech and would like to learn and adapt to the new realities of the 21st century
The presentation involves about Fintech industry, the technologies involved, various UPI's, regulators of Fintech Industry in India and Payment Sytstem in India
Use of Articificial Intelligence and technologies in providing financial services is what fintech does. Whether it is Payment gateway, insurance, banking, lending, stock trading, taxes.
How Fintech evolved over the years in the World and Indian Economy.
Indian Fintech Companies under different categories
Common Fintech practices adopted by Fintech Companies with better flexibility, convenience and accessibile financial products and services
Fintech and Transformation of the Financial Services IndustryRobin Teigland
Slides from our FinTech day as part of the Entrepreneurship & Innovation Concentration in the Stockholm School of Economics Exec MBA program in Stockholm, Sweden.
Was recently invited to share my thoughts on fin-tech with the board of a top 5 bank in India. While Indian banks have several challenges, I was impressed by this board's disruption awareness and desire to embrace technological change. It was a good discussion. Here is an edited version of that presentation (removed a few non-public info slides).
Digital lending is quickly growing among the 'thin file' borrowers i.e. the borrowers with no or negligible credit history. These borrowers can be both consumers or businesses.
But, in recent months the digital lenders are struggling with liquidity crises due to the pandemic. As RBI extended loan moratorium to borrowers, the Digital Lenders are in a catch-22 situation. While their borrowers expect them to extend the moratorium, financial institutions they borrow from (Banks and large NBFCs) are either refusing to or delaying to extend the moratorium to the digital lenders. digital lenders Association of India (DLAI) has already approached the RBI to get the moratorium benefits.
It is quite expected that many digital lenders (especially ones with weaker balance sheets) will not survive not only because of the liquidity crisis but also exposure to less creditworthy borrowers who are often small businesses and less creditworthy individuals. The economic repercussions of the lockdown may leave many of the borrowers unable to repay as small businesses shut down and people lose employment.
Although, the lockdowns have caused rapid digital adoption which is beneficial for the industry in the long-term. This indicates that the industry is expected to go through a lot of consolidation as cash strapped players look to be acquired to get some exit.
Let us understand this industry.
Is the Fintech ecosystem ready for breakout? Fintech is changing the way we do banking and finance, making it more intuitive and personalised. In this report, Deloitte India explains the growth of the Indian economy and the convergence of financial services and technology.
FinTech presentation at Banking and Payment System conferenceGrow VC Group
Presentation about fintech ecosystem for new finance services, especially integrated distributed services, and how they are changing the whole finance sector and banking services.
If you want to know about fintech then you must check out this presentation. Here you will get the basic points about fintech or technology in finance. A fintech is an abbreviated form of Financial Technology. It is also used as a collective term for all the technology in the financial sector. From a technical perspective, it is the seamless integration of technology in the finance sector to produce fast, accurate & efficient solutions for both consumers and businesses.
This Seminar will initiate a reflection regarding the extent to which innovation within the Financial Technology (FinTech) sector can and should be regulated.
The case will be illustrated with examples of the UK and EU market (e.g. the Financial Conduct Authority (FCA)’s Project ‘Innovate’ and the European Commission’s Single European Payment Area (SEPA)) and the implications for innovation will be discussed.
This will be complemented by introducing an Asian perspective as to the capacity of specific jurisdictions to frame and catalyse innovation, focusing on specific challenges and opportunities in Mainland China and Hong Kong.
Role of Financial Technology in Banking. This ppt describes the impact of Fintech in Banking and the new technologies that are disrupting the banking and financial services. This also includes the need for innovation in the banking sector. Fintech i.e. Financial technology plays an important role in the banking sector. Retail banking, financial technology, Fintech, innovations, Technologies, Imoact of Fintech in banking.
Overview of Digital Financial Services LandscapeJohn Owens
This presentation reviews the digital financial service landscape and is a primer for regulators and policy makers wishing to better understand current market developments.
the Fintech industry in Canada is disrupting the traditional baking industry and creating challenges for those banks that don't adopt technology as part of their business strategy. The following is an industry white paper that outlines some of the trends in the industry currently, and questions fintech companies and banks alike should ask themselves while they undertake their strategic planning process.
Digital lending is quickly growing among the 'thin file' borrowers i.e. the borrowers with no or negligible credit history. These borrowers can be both consumers or businesses.
But, in recent months the digital lenders are struggling with liquidity crises due to the pandemic. As RBI extended loan moratorium to borrowers, the Digital Lenders are in a catch-22 situation. While their borrowers expect them to extend the moratorium, financial institutions they borrow from (Banks and large NBFCs) are either refusing to or delaying to extend the moratorium to the digital lenders. digital lenders Association of India (DLAI) has already approached the RBI to get the moratorium benefits.
It is quite expected that many digital lenders (especially ones with weaker balance sheets) will not survive not only because of the liquidity crisis but also exposure to less creditworthy borrowers who are often small businesses and less creditworthy individuals. The economic repercussions of the lockdown may leave many of the borrowers unable to repay as small businesses shut down and people lose employment.
Although, the lockdowns have caused rapid digital adoption which is beneficial for the industry in the long-term. This indicates that the industry is expected to go through a lot of consolidation as cash strapped players look to be acquired to get some exit.
Let us understand this industry.
Is the Fintech ecosystem ready for breakout? Fintech is changing the way we do banking and finance, making it more intuitive and personalised. In this report, Deloitte India explains the growth of the Indian economy and the convergence of financial services and technology.
FinTech presentation at Banking and Payment System conferenceGrow VC Group
Presentation about fintech ecosystem for new finance services, especially integrated distributed services, and how they are changing the whole finance sector and banking services.
If you want to know about fintech then you must check out this presentation. Here you will get the basic points about fintech or technology in finance. A fintech is an abbreviated form of Financial Technology. It is also used as a collective term for all the technology in the financial sector. From a technical perspective, it is the seamless integration of technology in the finance sector to produce fast, accurate & efficient solutions for both consumers and businesses.
This Seminar will initiate a reflection regarding the extent to which innovation within the Financial Technology (FinTech) sector can and should be regulated.
The case will be illustrated with examples of the UK and EU market (e.g. the Financial Conduct Authority (FCA)’s Project ‘Innovate’ and the European Commission’s Single European Payment Area (SEPA)) and the implications for innovation will be discussed.
This will be complemented by introducing an Asian perspective as to the capacity of specific jurisdictions to frame and catalyse innovation, focusing on specific challenges and opportunities in Mainland China and Hong Kong.
Role of Financial Technology in Banking. This ppt describes the impact of Fintech in Banking and the new technologies that are disrupting the banking and financial services. This also includes the need for innovation in the banking sector. Fintech i.e. Financial technology plays an important role in the banking sector. Retail banking, financial technology, Fintech, innovations, Technologies, Imoact of Fintech in banking.
Overview of Digital Financial Services LandscapeJohn Owens
This presentation reviews the digital financial service landscape and is a primer for regulators and policy makers wishing to better understand current market developments.
the Fintech industry in Canada is disrupting the traditional baking industry and creating challenges for those banks that don't adopt technology as part of their business strategy. The following is an industry white paper that outlines some of the trends in the industry currently, and questions fintech companies and banks alike should ask themselves while they undertake their strategic planning process.
CH&Co - Supporting the development and adoption of RegTechNicolas Heguy
This presentation was submitted in January 2016 as an answer to the UK Financial Conduct Authority’s Call for Input on Regtech.
We’re publishing it also here to foster wider discussion on development and adoption of RegTech in the UK.
Special thanks to @Stephane_eyraud, @Patrick_bucquet, @Ekaterina_diakonova, @Sebastien_meunier and @Jean-stephane_gourevitch
Custody Banking and Emerging KYC NeedsTodd Breeden
Presentation prepared for one of the world's largest custodian banking service providers summarizing macro trends affecting the landscape and how to focus on emerging technology vendors in RegTech as a potential strategic solution to expand their business footprint
Financial Technologies are about to transform the way we bank, and they have just begun. Thirty years ago, the advent of communication technologies has revolutionized capitals markets and merely Finance. Financial products’ increased accessibility has made markets more liquid than ever, thus increasing trade, growth and development. Since then, human have created technologies which still was sketched in Fictions books few decades ago. Giant calculators, Internet, Nano-technologies and micro-computing are today about to change our entire world. Finance is not left aside, quite the contrary; it is actually deeply concerned by these technologies which progress exponentially and create opportunities until then unimaginable. Financial technologies’ companies, called FinTech embody this revolution’ outlooks. Global investments inside those start-ups have doubled from 12 billion in 2014 to 22 billion in 2015. They had just tripled from their 2013’s level (4 billion) and this trend may keep going yet a while. The last revolution had allowed bank to bank better. Instead, this one should allow people to bank, but without bank. That the main point of this revolution, it is disruptive. In this paper, we are going to assess potential threats that the FinTech trend could have upon traditional French Banks; How French could perceive this change, how FinTech could grow and how banks could cope.
China Internet Report 2017 by Edith YeungEdith Yeung
The China Internet Report covers topics including:
China vs. US internet by the numbers, China market size, top China startup cities, venture capital, smartphone landscape, major Chinese internet trends including messaging, mobile payment, Cryptocurrency, shopping, bike sharing, live streaming. gaming, eSport, artificial intelligence and education. This guide is intended to give you basic information about Chinese internet landscape.
Overview of industry trends and insights of Fortune 500 companies and startups' activities in the FinTech space. We cover banking tech (security, crm, analytics), payments (pos, money transfer, commerce), cyber currency (blockchain, bitcoin, wallets, cryptocurrency exchanges), business finance (lending, crowdfunding), personal finance (lending, wealth management, mortgage, credit), and alternative cores (banking, insurance).
FinTech will revolutionize investment banking in many ways. It uses innovation to dramatically increase efficiency and leverage advanced technologies like The Cloud and AI. As a result, investment institutions must adapt to technological advances to remain competitive.
India FinTech report 2019 - Executive summaryMEDICI
India FinTech Report 2019 offers an in-depth look at what makes the Indian FinTech ecosystem vibrant by taking a deeper dive into Government, Regulatory, and Private sector initiatives.
Download the Executive Summary here: https://bit.ly/2ugRke5
Download the main report here: https://bit.ly/2EjGclm
Disruptions and Digital Banking Trends by Luigi Wewege, Jeo Lee and Michael C...Luigi Wewege
Journal of Applied Finance & Banking - Scientific Press International
Technology in financial services, or ‘fintech’, entrants and technology-media-telecommunication companies have rapidly evolved into the traditional banking industry, offering customer-centric, faster-easier-convenient-free, financial services. Digital-only-neo-banks focus on payment, money transfer, lending for small-medium-businesses, and microfinancing, facilitating technological innovation such as digital wallet and messaging peer-to-peer transactions. Fintech banks generally lack scale and trust, unregulated in some cases with credit or liquidity risk exposure, from the customers perspective. Fintechs are increasingly perceived as a partner for a source of value creation through technological advances and innovations to large, traditional, and incumbent banks moving to accelerated digital transformation. All innovative technologies which have laid the groundwork for major disruption in the current digital banking revolution, set forth unimagined trajectory of collaboration and consolidation as fintech industry matures. This paper updates the digital banking transformation in fintechs and incumbent banking institutions to show that access to future fintech trends will grow significantly in coming years. The combined findings suggest that digitalised-mobile-banking transitions emphasize the capabilities of banking infrastructure for data sharing, connectivity, stability and cybersecurity and standardisation of internal and external APIs as progress continues within the regulatory framework of data protection as part of the privacy act and open-banking directives.
Mobile Wars: Fintech vs. Banks... and Big Tech in AmbushKatia Bazzocchi
Pure mobile banks gain users daily, as they benefit from accessible smartphone technology. Millenials are the principal users of mobile banks, and will soon be followed by Generation Z. As consumer expectations continue to be shaped by new technology and innovative consumer affairs, a full mobile strategy is key for traditional banks to maintain market share.
The Rise of FinTech_ How Is It Revolutionizing The Future of Finance_.pdfAnil
The evolution of FinTech (Financial Technology) drastically transformed the way traditional financial institutions – insurers and banks functioned. To thrive, global companies, retailers, and large tech giants realized the need to reinvent the value chain of financial services.
FinTech's innovation in the financial sector means financial technologies that are linked to the spirit of an era. FinTech's aspirations have a mainstream line that can be found on any continent, such as services related to basic banking processes, such as one touch or mobile purchases. At the same time, there are services that are only linked to continents, such as African SMS payment or the Asian micro payment system. In this study, we want to present Asian fintech efforts, such as Taobao, Tmall, Jingdong or Yu'e Bao, with no transaction costs, zero entry barriers, and broad support. The main issue with continental fintech processes is that there is only a demographic reason for different services or more?! It is also a question of building a fintech service from top to bottom (Alibaba) in Asia, or can it be built from bottom to top (Yu’e Bao)?
Fintech in Ukraine 2018 (English language)UNIT.City
Introducing you the first market map of FinTech Industry in Ukraine, powered by USAID Financial Sector Transformation Project and UNIT.City.
Foreign partners, potential investors, banks often ask us about the state of any part finteсh industry of Ukraine.
Today, we present a research that will become a tool for finding partners for Ukrainian and international investors, corporations, R&D centers, journalists, startups and businesses in FinTech.
P.S. If you are creating a fintech business in Ukraine, but did not find your company on the map – write us and we will add it to the next update of this map.
From account opening to insurance underwriting to payments to peer-to-peer lending, FinTechs are innovating across areas and offering differentiated customer experience. India Fintech Ecosystem has been growing well over the last five years and many of these successful startups are now getting ready for international rollouts.
www.thedigitalfifth.com
Fintech M&A: From threat to opportunityWhite & Case
Fintech has evolved from being a disruptive threat to a major
opportunity for financial institutions. The possibilities for
dealmaking and M&A are almost limitless.
The FinTech sector has grown rapidly in last few years and is on track of ever evolving track. Prior to 2008 financial crisis, the traditional banking sector was the only playground available for financial needs. The financial crisis collapsed the traditional banking & financial mechanism and paved the way for more secure and updated financial transaction which led to emergence of FinTech, which has altered the economic viability of traditional banking sector participants to originate loans, translating into contraction of the credit supply for individuals and SMEs.
Today, financial markets & services are flooded with technology driven innovation, whereby new non-depository institutions- referred to as peer-to-peer financing, loan based crowdfunding platform, marketplace lenders (MPL) - providing loans of various types and duration to end users through online and mobile channels. Some of these companies lend from their own corpus/balancesheet, while some serve as brokers between investors and borrowers, commonly referred to as “Platform Lenders”.
Payments has been the frontrunner in the large scale consumer adoption of Fintech in India, aided by the spread of smartphones and mobile internet at affordable price points. Most FinTech players started out by identifying a niche/use case for building a customer base ( e.g. Paytm for online payments, Ola Money for cab payments, Airtel Money for phone bills etc.) and then expanding onto other services.
Indian regulatory authorities including RBI, SEBI & IRDA have adopted an accommodative stance towards an emerging Fintech sector without bringing in prohibitive guidelines to over regulate the sector. Despite catching up with the rapidly evolving eco system, Indian regulators have adopted a consultative approach and have been proactively foreseeing the need for adequate regulations, especially in the areas concerning public funds i.e. peer-to-peer lending, crowd funding and alternative currencies.
A look inside the top 4 trends driving the FinTech industry today. How technology is impacting financial services and how they can benefit from advanced data analysis. Presented by Peter Huang, Director of Data at Beyondsoft.
From Traditional Banking to Digital Solutions The Rise of Fintech App Develop...Techugo
In the rapidly evolving world of finance, the traditional banking landscape has undergone a significant transformation with the advent of financial technology, or fintech. Fintech has revolutionized the way individuals and businesses manage their finances, shifting the focus from traditional brick-and-mortar banking institutions to digital solutions. At the heart of this revolution lies the fintech app development , which have become indispensable tools for financial transactions, investments, budgeting, and much more. This article explores the journey from traditional banking to digital solutions and the pivotal role played by fintech app development in reshaping the financial industry.
Putting the SPARK into Virtual Training.pptxCynthia Clay
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1. FINTECH
Fintech is an industry comprising of several companies that aim at delivering financial services with
the help of technology. Financial technologies aim at rendering financial services efficiently and are
designed to be user friendly and secure.
EMERGENCE OF FINTECH:
Banking has been one industry that has been immovable by any of the market factors or external
economic scenarios such as Dot com boom and commercial internet. However, the recent increase
in the number of handsets that provide data services at a lower cost has been on the rise. Since the
information available over the internet is almost free of cost and the data services rendered by their
providers are not that expensive as well, the current generation are more aware of the financial
services that can be accessed digitally. This led to the advent of ‘FinTech’ providing financial services
with the help of technology efficiently.
FACTORS INFLUENCING EMERGENCE OF FINTECH:
Mobile Internet
Fintech companies observed how banks had exploited the penetration of mobile internet and the
ease at which payment gateways operated for the E-Commerce industry. Factors pertaining to
mobile internet that led to the emergence of fintech in India are:
a. In India, around 21.33 percentage of the population were accessing internet through their
mobile phones and this figure is expected to increase to upto 37.36% by the end of 2021.
b. More recently, Reliance Jio has been offering internet at cheaper rates and their direct
competitors such as Airtel, Aircel and etc are forced to decrease their data charges resulting
in an increase in the number of users.
Current Generation Preferences
The number of active mobile internet users belonged to the age group of 25-34. In a survey
conducted in Great Britain, there were only 4% of the population not accessing mobile internet.
The preference has varied and instead of visiting the bank for mundane activities such as transfer of
money, the current generation rather prefers to not stand in the queue and use the mobile app to
transfer the money.
2. FINTECH DISRUPTING TRADITIONAL BANKING:
“Banks are under attack” mentioned Tom Loverro from RRE Ventures, a venture capital firm
headquartered in New York. With global investments in financial technologies increased to 19 billion
in 2015 signifying the importance of digitalisation.
Regulatory barriers have helped traditional banks maintain their status quo, however the many
fintech start-ups have begun to challenge the same. Fintech has emerged to become a new
disruptive market force and has challenged bank’s traditional payment structures. The major players
influencing financial services such as the depositors, borrowers, investors and the businessmen are
being offered a cheaper access to fintech services through one medium or the other.
The idea of disrupting sectors has been taken from few service industry domains such as Uber,
AirBNB which have successfully cut out the middlemen in a payment transaction.
GLOBAL SCENARIO:
CitiGroup had analysed on the investments of the fintech firms and compared them with
traditional banks.
Traditional banks still hold good and only 1% of North American population have moved into
digital transactions. This gives more scope for the Fintech firms in Silicon Valley region to exploit
the current situation and reap benefits.
Considering Europe, UK – London in particular saw a tremendous growth in fintech penetration
owing to strong financial institutions. However, Brexit has caused about some negative impact
on the growth of Fintech.
1. In Spain, Santander InnoVentures have suggested that the new blockchain
technology could save up to 20 billion dollars a year for the lenders and also save up
the tax incurred on cross border payments. This system poses a threat to the legacy
system which prevails in traditional banks.
2. In China, the number of P2P(Person to Person) gateways is on the rise and currently
there are around 4127 providers as compared to a mere 200 in the year 2012. So the
3. growth of fintech firms in China, looking at the trend has been increasing in a
positive manner.
DEMONETISATION IMPACT ON FINTECH
Very few industries managed to bear the brunt of demonetisation and some industries strived
and grew and more so managed to make profits from them – one of them were Fintech
industry.
Paytm witnessed a 200 percentage increase in their app downloads and their transaction value
increased by 250% in the first 24 hours since the 500 and 1000 rupee currency notes were
devalued.
Banks and Fintechs being on two opposite ends had the least of possibilities to work hand in
hand with one another. However as a result of demonetisation banks were forced to work with
fintech firms and are making partnerships with them.
Yes Bank, have recently signed 36 partnerships with fintech companies for payments, lending,
digital acquisition and customer service. These partnerships helped in improving Yes Bank’s
customer acquisition by 8-10%.
Similarly RBL was tying up with partners like Oxigen and ItzCash to allow its customers to do
basic banking activites.
PREDICTIONS ON POST-DEMONETISATION SCENARIO
Customers for now are forced to use the Digital wallets, and purely on marketing terms, the
demand created has been enforced - “PUSH” strategy in precise, and PULL strategy is more
optimal and successful for the product to succeed in the market.
So, Fintech markets should consider this phase as temporary and try not pumping in all their
resources and attract customers.
Indian customers are far different from Westerners as their trust in digital wallets or in that case
even credit cards are not fully trusted by all as they feel it is unsecure.
However, Fintech firms can use this as a platform to develop digital transactions and run parallel
to our existing monetary systems, keeping in mind their target customers carefully.
4. MARKET SIZE
The market is growing at a very high speed than estimated. Fintech industry was estimated to
achieve 3 billion dollars investment by 2018, however it has exceeded the expectations by a
huge percentage and have managed to achieve 19 billion dollars by 2016 itself.
On comparing year to year, the transactional volumes provided by fintech firms have increased
rapidly, from 15 million in the year 2014 to 23 million by 2016.
The transaction volumes are largely the sub sum of various components such as online
payments, Mobile wallet POS payments, Online P2P money transfers majorly.
On comparing the market, country wise – USA provides maximum transactional volumes of
close to about 769 Million Dollars and the closest competitors are China at 444 Million dollars.
The 3 countries with highest number of Fintech startups are UK, India and the US.
LEADERS IN FINTECH
The Fintech100 released by KPMG selected companies and ranked them based on the following
factors:
a. Total Capital Raised
b. Rate of capital raising
c. Geographical diversity
d. Sectorial diversity
e. X-Factor: degree of product, service, business model innovation
According to which, the market leaders in the industry are:
Ant Financial – China’s online payments through Alipay services and draws comparison to
Paypal. Ant Financial has a tie up with Alibaba and was previously providing only a payment
gateway to Alibaba’s customers.
Future strategy of Ant Financial is to list shares both domestically in Chinese stock market
exchange and overseas.
5. The other major players in market are as follows:
1. Quidan, China
2. Oscar, USA
3. Lufax, China
4. ZhongAn, China
The top 5 Fintech companies in terms of their funding and size in India are:
a. PayTM
b. MobiKwik
c. Freecharge
d. Bankbazaar.com
e. Lending Kart
FINTECH COMPETITORS:
‘Retail Banks’ are the major competitors to the fintech industry. They do not seem to help their
cause much as they fail to innovate leading in increase in the number of customers accessing
the fintech services to increase. On a survey conducted by Capgemini to a sample size of 16000
customers around 55% of them were comfortable in referring their friends to use fintech
services as compared to the 38% of them who suggested their friends to use the banks instead.
COMPETITOR STRATEGY
Banks have now started adopting an strategy of acquiring Fintechs in order to impove their
customer base and as mentioned, some banks such as Yes Bank and RBL are trying actively to tie
up with several fintech start-ups.
6. SWOT ANALYSIS OF FINTECH in INDIA:
STRENGTHS:
1. Funding of 198 million dollars over the 64 deals in 2016
2. Continuous evolution in the market and the use of algorithm based customisation
related to personal finance, insurance and investment with ease of payments via
mobiles.
So, product diversification and advancement in technology is aimed at in the year 2016.
3. SBI has allocated a sum of 200 crores for the development of financial technologies and
has already tied up with IIT Bombay to promote innovations by startups.
WEAKNESS:
1. Low mobile internet penetration.
The success of Jio is yet to be tested and the market in India is still growing and has not
yet reached maturity stage.
2. Data Issues
Indians are not very confident in entering details such as credit card numbers and
passwords as they rely more on the brand, as big brand names always ensure data
safety. So these security issues are one of the biggest weaknesses a company can face in
Fintech industry.
3. Unavailability of broad financial structure.
OPPORTUNITIES:
1. Growing demand in various market segments, as the financial service market is still at a
nascent stage in India, various segments such as consumer lending, micro financing and
etc can still be convinced and sold upon to Indian customers.
2. Our Prime minister of India has started various schemes and one of his was ‘Digital India’
– its indirect motive was to push India into a cashless economy, the recent
demonetisation also proved the same. Thereby, this could be seen as an opportunity for
fintech startups to enter the market and gather maximum customer base.0
7. THREATS:
1. Many players are entering into the market providing similar services and this could lead
to a lack of innovation and fintech’s may reach a decline stage very soon.
2. Security / Privacy breach is considered as one of the biggest threats in fintech industry.
FUTURISTIC PREDICTIONS:
According to Business Insider, some of the key predictions of Fintech industry include:
1. Mobile ordering apps will become an important transactional channel for quick service
restaurant.
2. Traditional financial institutions are expected to be proactive and pair up with fintechs
to improve customer base.
3. Apple, Google and Samsung will build out commerce experiences around their payment
product.
4. Global banks will commit to n unified blockchain solution for inter-bank transactions.
CONCLUSION:
The global markets for Fintech industry has been growing at a rapid pace with investments
coming in at an exponential manner. Fintech has managed to disrupt ‘Banks’ despite the fact
that banks were always shielded with public policies , regulations and more importantly
people’s trust. The scenario now has changed and the current generation gives more
importance on the ease of getting the task done. With additional factors as smartphone
penetration and cheap cost of information over the internet – Fintech is expected to grow at a
rapid pace just with a little push.
SOURCES & REFERENCES:
1. https://h2.vc/reports/dl2016
2. https://yourstory.com/2016/07/biggest-funded-fintech-startups/
3. https://www.cbinsights.com/blog/disrupting-banking-fintech-startups-2016/
4. http://www.businessinsider.com/china-becoming-fintech-leader-2016-11?IR=T
5. http://www.pewglobal.org/2016/02/22/smartphone-ownership-and-internet-usage-
continues-to-climb-in-emerging-economies/
6. https://www.statista.com/topics/2157/internet-usage-in-india/