Finance and technology, artificial intelligence

1. WELCOME TO SEMINAR ON
FINTECH & ITS IMPACT ON INDIAN
ECONOMY

2. Presented by -
Mustakim Ali Khan
Sai Shradha Mahapatra
Deepika Agarwal
Guided By -
Dr. Rabindra Kumar Swain
(Seminar Advisor)

3. INTRODUCTION
Fintech, the word is a combination of “Financial Technology”
Fintech is an integration of technology to provide Financial Services
Fintech has significantly transformed the traditional financial industry by
enhancing efficiency, accessibility, and user experience.
Fintech includes a wide range of innovations, including online banking,
cryptocurrency, mobile payments, etc.

4. EMERGENCE OF FINTECH
Fintech 1.0
(1866-1966)
Fintech 2.0
(1967-2007)
PENTELEGRAPH was developed to
verify signature by banks.
Electronic fund Transfer through
Telegraph and Morse Code
Amex introduced credit card in1950.
Advent of Cards and ATM machines.
Telex had replaced Telegraph for
EFT.
Rise of E- Commerce, Digital
Finance and cashless payment came
to light after the launch of PAYPAL

5. Fintech 3.0
(2008-2013)
Fintech 4.0
(2014 Onwards)
Advent of new technologies, P2P,
Wallets, Bitcoin (Cryptocurrency),
etc.
Integration of advance technology to
financial services Block chain, ML,
etc.
Demonetization leads to increase in
need of digital payments in India.
Introduction of UPI by NPCI.
Use of Digital Wallets in India.
(Paytm Wallet)
EMERGENCE OF FINTECH

6. FINTECH INDUSTRY IN INDIA
$922M
$3.7B
$2.1B
$4.0B
$2.7B
$3.1B
$5.65B
2016 2017 2018 2019 2020 2021 2022
2016 2017 2018
2016 2019 2020 2021 2022

7. FINTECH COMPANIES IN INDIA

8. USES OF FINTECH
BLOCK CHAIN
Cryptocurrency

9. DIGITAL INDIA
JAN DHAN YOJANA
The world's largest financial inclusion initiative
New bank account enrolment of over 480 Mn beneficiaries.
Deposits of more than 2 lakh crore rupees are in these accounts
Promotes financial literacy, and access to credit, insurance and pension facility.
AADHAAR ENABLED PAYMENT SYSTEM (AEPS)
Aadhaar is the world’s largest biometric identification system (1.3+ Bn Aadhaars
generated so far)
AEPS is a bank led model which allows online interoperable financial transaction at
PoS (Point of Sale / Micro ATM) through the Business Correspondent (BC)/Bank
Mitra of any bank using the Aadhaar authentication.

10. UPI - Unified Payments Interface
 Revolutionized the Indian payments ecosystem.
 75% Of all retail digital payments in India is UPI
 Volume of UPI transactions increased 200x from January 2017 (4.5 Mn) to January
2023 (10 Bn), and the Value increased 600x during the same period
 UPI recorded the highest ever volume of transactions in April 2023 – 8.8 Bn
Rupay
 RuPay is a brand of NPCI
 Lower cost and affordability
 Protection of information related to Indian consumers
FASTag
 FASTag is an auto electronic toll collection system in India
 It employs Radio Frequency Identification technology
 No manual recharging of FASTag

11. Robo-Advisors
 Provide financial planning services through automated algorithms with minimal or no human
intervention.
 Fisdom, Angel Broking ARQ, 5Paisa Auto Investor
Insurtech
 Technological innovations that are created and implemented to improve the efficiency of the
insurance industry.
 Enables comparison among various policies.
 Digit, ACKO, PolicyBazaar, etc
Investment apps
 Makes it easy to buy and sell stocks, exchange-traded funds (ETFs), MF’s
 Zerodha, Groww, Upstox
Payment Apps
 Offers easy payment to pay individuals or businesses online and in an instant.
 Phonepe, Paytm, Bharatpe

12. Personal finance
Let us see all of your finances in one place, set budgets, pay bills, and so on.
Cred, Onescore
Buy Now Pay Later
Allows customers to make purchases immediately and delay payment for a later
date.
Flipkart, Amazon BNPL services
Peer-to-peer (P2P) lending platforms
Enables an individual to obtain a loan directly from another individual, cutting out
the traditional bank as the middleman.
12% Club, InstaMoney, LenDenClub
Crypto apps
Allows you to buy and sell crypto currency.
Bitget , WazirX, CoinDCX

14. GLOBAL FINTECH RANKINGS

15. Q1 Q2 Q3 Q4
2015 11.3 9.9 9.2 11.5
2016 12.2 11.9 11.5 11.6
2017 10.1 10.7 12 11.2
2018 13.9 11.9 12.2 4.7
2019 9.6 6.2 6.5 8.8
2020 -22.3 -4.4 5.2 8.7
2021 31.7 18.4 14.3 16.6
2022 27.8 17.2 11.2 17.8
11.3 12.2
10.1
13.9
9.6
-22.3
31.7
27.8
9.9
11.9 10.7 11.9
6.2
-4.4
18.4 17.2
9.2
11.5 12 12.2
6.5 5.2
14.3
11.2
11.5 11.6 11.2
4.7
8.8 8.7
16.6 17.8
-30
-20
-10
0
10
20
30
40
2015 2016 2017 2018 2019 2020 2021 2022
Q1 Q2 Q3 Q4
FINTECH CONTRIBUTION TOWARDS GDP IN INDIA
FINTECH CONTRIBUTION TOWARDS “GDP” IN INDIA

16. FinTech industry not only contributes to the “GDP”, but it also contributes to “Employment” &
“National Income”.
Some of the companies that are contributing to the economy are as follows-
Paytm (a partial abbreviation for "pay through mobile”) is an Indian MNC that represents considerable
authority in computerized installment framework, web-based business and money, situated in Noida.
Revenue-
₹3,281 crore (US$460 million) (FY 2020)
₹3,115 crores (USD $426 Million) (FY 2019)
₹774 crores (USD $106 Million) (FY 2018)
₹814 crores (USD $111.40 million) (FY 2017)
₹899 Crores (USD $123 million) (FY 2016)
Number of employees: Around 16,000
FINTECH CONTRIBUTION TOWARDS “EMPLOYMENT” & “NATIONAL INCOME” IN INDIA
FINTECH CONTRIBUTION TOWARDS “EMPLOYMENT” & “NATIONAL INCOME” IN INDIA

17. Policy bazaar is an Indian private company with the head office in Gurugram, India. It gives a computerized
stage - site and application - where clients look at monetary administrations from significant insurance
agencies.
Revenue-
₹771.29 crore (FY 2020)
₹310.30 crores (FY 2019)
₹158.30 crores (FY 2018)
₹49.06 crores (FY 2017)
₹213 crores (FY 2016)
Number of employees: Around 11,500
FINTECH CONTRIBUTION TOWARDS “EMPLOYMENT” & “NATIONAL INCOME” IN INDIA

18. CHALLENGES FACED BY FINTECH COMPANIES IN INDIA
Repetitive security breaches
Low transparency
Lack of tech expertise
Regulatory compliance
User retention and user experience

19. INDIA’S FINTECH LANDSCAPE

20. INDIA – A GLOBAL FINTECH SUPERPOWER

21. 1. The United States
The U.S. is the gravitation center of entrepreneurs as well as hi-tech talent, which has attracted the highest fintech investment
and built the largest network of start-up firms
The U.S. dominates fintech industry with major hubs such as Silicon Valley and New York.
Key growth levers-
1. Government incentives- The U.S. has been consistently moving towards easing
of regulatory barriers, widening its benefit coverage and qualification definitions to
include more budding start-ups than any other fintech ecosystem in the world.
2. Funding ecosystem- The U.S. has been an undisputed market leader in terms of
deal and market size in the fintech space. The market has seen all-round
participation from VC funds, large banks and crowdsourcing platforms.
Emerging strength areas-
1. Business Environment- All round growth in accelerators from corporates and
academia, to bolster the seed and growth stage infrastructure and mentorship to
complement its funding backbone.
2. Regulatory support- The U.S. government has been consistently moving
towards easing of the regulatory barriers to retail investments into the fintech
landscape, with sufficient care and safeguards.
GLOBAL PERSPECTIVE OF FINTECH

22. GLOBAL PERSPECTIVE OF FINTECH
2. The U.K.
The U.K. has established itself as one of the most attractive locations in fintech with high digital connectivity, an indigenous
financial services workforce and solid funding landscape.
Apart from getting more consolidated as a global financial hub post the financial crisis of 2008, the U.K. has also emerged as a
strong fintech ecosystem, with USD 1.07 billion of investment activity in 2015.
Key growth levers-
1. Regulatory support- The U.K. has maintained its focus on providing the
strongest regulatory support to its fintech sector through taxation, disclosure
mandates, consumer protection regulations and risk management.
2. Government incentives- There are aggressive programs in the U.K. to address
entry barriers and mobilize fair competition and go-to market ease.
Emerging strength areas-
1. Business environment- Despite the traditional disconnect at regulatory and
business fronts within the EU, the U.K.’s business environment for fintech is given a
strong boost by policy alignment, digital infrastructure, demand generation and
expanded outreach.
2. Technology readiness- To counter the absence of a traditional technology hub
of the stature of a Silicon Valley in the U.S., UK’s chosen strategic focus areas
include global technology partnerships and development of strong digital asset and
knowledge base.

23. GLOBAL PERSPECTIVE OF FINTECH

24. GLOBAL PERSPECTIVE OF FINTECH

25. GLOBAL PERSPECTIVE OF FINTECH

26. JOINT WORKING GROUPS(JWG) ON FINTECH
JWG has been established bilaterally with “UK” & “SINGAPORE” to improve regulatory connect, adopt learning &
best practices and boost entrepreneurship & collaboration between nations & promote joint development of Fintech
Solutions, Interoperability Standards & Payments Linkages.

27. JWG has been established bilaterally with “UK” & “SINGAPORE” to improve regulatory connect, adopt learning &
best practices and boost entrepreneurship & collaboration between nations & promote joint development of Fintech
Solutions, Interoperability Standards & Payments Linkages.
JOINT WORKING GROUPS(JWG) ON FINTECH

28. CONCLUSION
 The FinTech revolution is a unique opportunity to drive financial inclusion.
 RBI's approach has been to balance innovation with regulation, without compromising on the
principles of prudence.
 The FinTech Sector also needs to look into self-regulation and ensure that the issues relating to
technology, ethics, customer protection and data privacy are addressed.
 India’s G20 presidency, gives the country an opportunity to showcase its leadership in the field of
FinTech.
 While India has made significant strides in developing its domestic payments systems which are
acknowledged globally, it also contributes to innovations in cross-border payment systems.
 With the rise of digital transformation, the financial technology industry is rapidly expanding and
disrupting traditional financial services.
 Overall, India’s fintech future is promising and its evolution will transform the country’s financial
landscape.