Abstract
Fintech refers to the novel processes and products that become available for financial services due to the digital technological advancements. Fintech includes technologically enabled financial innovation leading to new business models, applications, processes, or products with an associated material effect on financial markets, institutions, and financial services. India is transitioning into a dynamic ecosystem offering Fintech start-ups a platform to grow into billion-dollar unicorns. From tapping new segments to exploring foreign markets, Fintech in India is pursuing multiple targets. The traditionally cash-driven Indian economy has responded well to the Fintech opportunity, primarily triggered by a surge in e-commerce, and Smartphone penetration. However, India's growth is still not comparable in scale to its global counterparts but is stacked well, due to a strong talent pipeline of the tech workforce. Hence, adopting an exploratory approach, based on in-depth literature review, the chapter aims to identify the challenges and deliberate on the outlook for Fintech in India.
TopLiterature Review
Financial markets worldwide were profoundly affected by the internet revolution in the early 1990s, with one of the major effects being that it lowered costs for financial transactions. Technological advances driven by the internet revolution changed the face of the financial services industry and led to the development of electronic finance (e-finance). E-finance refers to all forms of financial services such as banking, insurance, and stock trading performed through electronic means, including the internet and World Wide Web. E-finance allows individuals or businesses to access accounts, trans- act business, and obtain information on financial products and services without being in physical contact with financial firms. Many e-finance business models emerged in the 1990s, including online banking, online brokerage services, mobile payment, and mobile banking.
Key Terms in this Chapter
Technology: Is the application of knowledge for practical ends and it refers to practical application of science to commerce or industry. It is the discipline dealing with the art or science of applying scientific knowledge to practical problems.
Banking: Is an industry that handles cash, credit, and other financial transactions.
Fintech: Refers to financial technology, and is technology and innovation that aims to compete with traditional financial methods in the delivery of financial services.
Cashless Economy: Is a system where any type of money transactions are done through digital means like debit cards, electronic fund transfer, mobile payments, internet banking, mobile wallets.
Cashless Society: In which purchases of goods or services are made by credit card or electronic funds transfer rather than with cash or checks.
Digital Economy: Is a term for all of those economic processes, transactions, interactions and activities that are based on digital technologies.
Financial Services: Is a term used to refer to the services provided by the finance market. Financial Services is also the term used to describe organizations that deal with the management of money. Examples are the Banks, investment banks, insurance companies, credit card companies and stock brokerages.