"GROWTH AND CHALLENGES OF FINTECH”

A DESK PROJECT REPORT

SUBMITTED IN THE PARTIAL FULFILMENT

OF THE REQUIREMENTS OF
ARKA JAIN UNIVERSITY

For SEMESTER – II
BACHELOR OF BUSINESS ADMINISTRATION
For the session 2024-2025

Submitted By
Saumya Raj
University Enrollment Number: AJU/241614

Faculty Mentor
Name:Mrs. Abha Vishwakarma Mam

Designation: Assistant Professor

Department of Management
School of Commerce and Management, ARKA JAIN UNIVERSITY
DECLARATION BY THE STUDENT

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 DECLARATION BY THE STUDENT

I, Saumya Raj,hereby declare the project “GROWTH AND CHALLENGES OF

FINTECH”, has been carried out by me during my ‘DESK PROJECT
REPORT’ and is hereby submitted in the partial fulfilment of the requirement of
ARKA JAIN UNIVERSITY for the award of the degree of bachelor of business
administration.
To the best of my knowledge, the project undertaken, has been carried out by me in
Semester – II and is my original work. The contents of this report are authentic and
this report has not been submitted elsewhere for the award of any Certificate/
Degree/ Diploma etc.

Signature of the Student

Name of the Student: SAUMYA RAJ
University Enrollment No.: AJU/241614
BBA (2024- 2027)

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 CERTIFICATE OF APPROVAL

The project report has been examined and evaluated by the undersigned and found
to be satisfactory in terms of its content, format, and adherence to the guidelines
provided by the BBA, Department of Management, School of Commerce and
Management.

I hereby recommend that the project report be accepted and submitted for further
evaluation.

Approval of the Program Coordinator Approval of the Assistant Dean (UG)

BBA, Department of Management School of Commerce and Management

School of Commerce and Management ARKA JAIN UNIVERSITY

ARKA JAIN UNIVERSITY

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 CERTIFICATE FROM THE FACULTY MENTOR

This is to certify that the project report titled “ GROWTH AND CHALLENGES OF
FINTECH"has been completed under my supervision and is approved as meeting the
requirements for the fulfilment of BBA, Department of Management at School of
Commerce and
Management.

Signature of the Faculty Mentor,

Name of the Faculty Mentor: Mrs. Abha Vishwakarma Mam

Designation of the Faculty Mentor: Assistant Professor

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 INDEX

CHAPTER NO. CHAPTER NAME PAGE NO.

Chapter 1 Introduction

Chapter 2 Literature Review

Chapter 3 Methodology

Chapter 4 Analysis and Findings

Chapter 5 Recommendation

Chapter 6
Conclusion

References
(Rabab Ebrahim, 2021) “FinTech in Banks: Opportunities and Challenges” The
authors suggest that the new chances of FinTech incorporate better
advanced financial experience, customized client administrations, significant
level information security, practical, and effective administrations. Then
again, FinTech brings about dangers, for example, security risk, specialized
danger, guideline hazard, monetary danger, and notoriety hazard. At long last,
they propose that the potential difficulties of FinTech are mechanical
transformation, risk reduction, guidelines, and human resources work.

(Gagan Kukreja D. B., 2021) “The Impact of FinTech on Financial Services in

India: Past, Present, and Future Trends” This part covers the turn of events,
openings, and difficulties of monetary areas due to new advancements in
India. This section illuminate’s opening that arose due to segment profit, high
infiltration, and admittance to the most recent and reasonable innovation,
moderate expense of cell phones, and government strategies like Digital
India, Start-up India, Make in India, etc. In conclusion, this part depicts the
undiscovered possibilities of FinTech in India.

(Arner, Barberis, & Buckley, 2015) “The Evolution of FinTech: A New Post-
Crisis Paradigm?” FinTech 1.0, from 1866 to 1987, was the primary time of
monetary globalization upheld by an innovative framework, for example,
overseas transmission links. This was trailed by FinTech 2.0, from 1987-2008,
during which monetary administrations firms progressively digitized their
cycles. Since 2008 another period of FinTech has arisen in both the created
and creating the world. This period is characterized not by the monetary
items or administrations conveyed but rather by who conveys them. This
most recent development of FinTech, drove by new businesses, presents
difficulties for controllers and market members the same, especially in
adjusting the likely advantages of advancement with the potential dangers of
new methodologies.

(Khotinskay, 2019) “FinTech: Fundamental Theory and Empirical Features” In

this study, the author considers the issue of monetary changes in the
financial frameworks of the business level - by the case of the monetary
market. The driver of these changes is FinTech (monetary innovation).
Patterns that have been created in this portion of the economy after the
of the economy, from one perspective, and its digitalization, then again. The
rise of the new quality in the monetary frameworks of the business level
makes it important, to sum up, the observational experience and to decipher
it according to the perspective of the principal hypothesis.

(P. Krishna Priya, September 2019) “FinTech Issues and Challenges in India”
India is a developing business sector for FinTech with a populace of almost
1.3 billion. An immense level of the unbanked and under-banked populace is
making India a thrilling worldwide space for monetary innovations. FinTech is
viewed as a distinct advantage and problematic development which is fit for
stirring up the customary monetary business sectors. FinTech has been filling
quickly in India over the most recent five years and is relied upon to fill further
in the closest future. At this start, the article centers on the fundamental
kinds of monetary advancements and their capacities and furthermore
examines the chances and difficulties it has in the Indian business climate.

(Kanchan Rauniyar, May 2021) “Role of FinTech and Innovations for

Improvising Digital Financial Inclusion” The objective of the study is to
delineate the job of FinTech advancement as the leader to advance
digitalization and digitization, which adds to expanding Digital financial
inclusion (DFI). Basic holes and how the reciprocal relationship of FinTech
advancement and DFI can uphold the cutting edge monetary the business
has been introduced in the discoveries of this review to distinguish the
interrelationship between FinTech, monetary advancement, and DFI. The
hypothetical focal point based on different writing audits has been utilized to
investigate the diverse level of co-relationship that features the positive,
negative, and double measurements that exist between FinTech, monetary
advancement and, DFI. A reasonable system has been proposed to portray
the whole progress period of the customary monetary environment moving
into the cutting edge monetary scene with the assistance of DFI.

(Pant, September 2020) “FinTech: Emerging Trends” The objective of this

paper is to recognize around the world arising FinTech patterns. The
Qualitative examination approach was utilized depending on a survey of
writing, conversation with the experts and scientists. The arising patterns
incorporate IMF center around utilizing FinTech for cross-line installments
 Research Objectives and Methodology
●Understand the definition of FinTech;
●Understand opportunities in FinTech;
●Study challenges of FinTech
●Study emerging trends in FinTech
●To study the areas where the FinTech in Indian market.

● To provide a conceptual overview of the FinTechs and adoption of

FinTech among digitally active consumers.
● To identify both the Motivators for adopting financial technologies,
Barriers and Challengers for adopting financial technologies

Type of Research Design

This is an exploratory kind of study. It isn't expected to give conclusive

evidence, however, assists with having a superior comprehension of the
issue. Exploratory research configuration doesn't mean to give the last and
indisputable responses to the research questions, however merely explore
the research topic with varying levels of depth.

Source of Data
In this Desk Project " Secondary Data Collection Method" is used.

Data Collection

An exploratory research design approach has been followed by using the

secondary data. The data collection method used here is external data
collection. The data has also been taken from published books and various
government standards. The selection criteria were based on top-cited
research papers on Google scholar website. Some key data and trends for
future innovations in FinTech were taken from websites of leading market
research organizations.
 What is FinTech?

Figure 1: FinTech

(Source: https://www.vapulus.com/)

The scene of banking and the monetary area has gone through a sensational
change since the 2008 Global Financial Crisis (GFC), attributable to monetary
innovation firms, prominently known as 'FinTechs'. Both as innovative
disruptors and facilitators, FinTechs have added to the cutting edge banking
and monetary area through different channels including cost enhancement,
better client support, and monetary incorporation. FinTechs play had a
significant impact in unbundling banking into centre elements of settling
installments, performing development change, sharing danger, and
distributing capital. The data and broadcast communications insurgency is
viewed as the fifth 'Innovative Revolution' driving growth, and FinTech is in
charge of this inventive interruption. The extent of tasks of FinTechs has
additionally expanded, moving from crypto resources for installments,
protection, stocks, bonds, share loan, robo-guides, reg-tech, and sup-tech.
In India, FinTechs and Digital players could work as the fourth portion of the
Indian monetary framework, close by huge banks, moderate-sized banks
including specialty banks, little money banks, provincial banks, and helpful
banks. This fragment can possibly generally change the monetary scene
where customers will actually want to look over the more extensive
arrangement of choices at serious costs, and monetary organizations could
further develop effectiveness through lower costs. India has arisen as the
quickest developing FinTech market and the third biggest FinTech
environment on the planet. FinTech appears to be possibilities thanks to
supporting
the evolving Indian economy enjoy the benefits of digital technology and aim
to cut back inequalities between industrialized and developing nations.
According to India’s Telecom regulatory agency (TRAI), in April 2109 there had
been 1.16 billion mobile users. TRAI additionally expresses that the measure
of cell phone clients in India has developed last year huge amounts at a time
in India, finishing inside the world's least expensive portable information. The
new entry of telecom operator, Reliance Jio, has changed the telecom market
dynamics completely. This operator provides telecom services in India which
are that the cheapest in the world (The Economic Times, 2018, September 6)
FinTech can possibly generally change the monetary scene, furnish
customers with a more prominent assortment of monetary items at cutthroat
costs, and assist monetary foundations with becoming effective. The quick
and ground breaking changes welcomed by FinTech should be checked and
assessed so controllers and society can stay aware of the hidden innovative
and pioneering transition.

1.2 History of FinTech

Figure 2: Evolution of FinTech

(Source: https://vinodsblog.com/)
FinTech 1.0
FinTech history traces all the way back to the 19th century and even before
that. In 1860, a gadget called PENTELEGRAPH was created to confirm marks
by banks.
Antiquarians acknowledge 1866 as the first substantial FinTech impression.
This was the year the transoceanic links were set up prompting a time of
making network frameworks and linkages all throughout the planet. The
setting up of Electronic asset move through Telegraph and Morse code in
1918 by Fedwire prompted the main small step in the digitalization of cash.
The two WW additionally saw another arrangement of coders and
codebreakers predominantly for military purposes (however this set up
coding and future advanced turn of events). The distribution of the book "The
Economic results of Peace" in 1919 is treated as the main suspect on the
FinTech-driven future.
For the most part, FinTech students of history miss one significant and life-
changing occasion of FinTech 1.0 and that is Diner's Card in 1950. This was
the primary genuine attempt to make your installments credit only and
keeping in mind that the start was unassuming and restricted to eateries
installments, it prepared for the future to create. This was trailed by the
presentation of Credit Card by Amex in 1958. With the presentation of Screen-
based stock information by Quotron in 1960, the financial market took a
gigantic step, one significant fruitful execution of early FinTech thoughts.
FinTech 2.0

FinTech 2.0 is considered regardless of the presentation of ATM machines by

Barclay's in 1967. Simply the prior year in 1966, Telex had substituted
Telegraph for moving data across the world; hence proclaiming a time of
associated monetary exchanges and correspondence.
The major FinTech development came in 1971 with the arrangement of
NASDAQ as the main Electronic financial exchange. It changed the manner in
which offering is done and modernized the IPO interaction essentially. This is
viewed as quite possibly the main FinTech advancement ever. This was
trailed by the presentation of SWIFT in 1973, another progressive assistance
standard. The '80s saw the advancement of electronic exchanges and
internet banking frameworks. Trade plus (E-exchange) presented the E-
exchange without precedent for 1982 for its clients. This was trailed by NBS/
WF offering internet banking to their clients by 1983/1985. Today, we can't
envision a world without these two innovation administrations in our day-to-
day existence. 1983 was the year when Mobile telephones were dispatched
interestingly as well. The improvement of intricate figuring frameworks
development of E-trade during the mid-'90s which made the dependence on
computerized finance considerably huger. 1998 saw the dispatch of PAYPAL,
the pioneer of credit-only installments in years to come.
The 2000’s bubble burst and the resulting years saw the quick advancement
of innovation in monetary areas, fundamentally being conveyed by the
conventional banks as a helping capacity to their essential channels. The
2008 monetary emergency drove an essential change in the viewpoint
towards the FinTech area and the requirement for development prompted the
genuine blast that was revealed in the coming years.
FinTech 3.0
The 2008 emergency prompted the accompanying necessities

● Post emergency changes required stricter administrative impulses for

conventional banks and it opened up another market for more modest
players. This was additionally helped by doubt of public in enormous
monetary foundations
● Generally speaking, the focal point of the business was on reducing
down functional expense utilizing innovation
● The approach of new innovations like P2P, Wallets, Bitcoins prompted
convenience for the overall purchaser
These necessities and advancements prompted another period of financial
administrations and FINTECH as far as we might be concerned today. Two
significant occasions were the improvement of Bitcoin in 2009 as the primary
digital money and P2P installment frameworks in 2011. The western world
has been agitating new turns of events and many new unicorns from that
point forward. BaaS, RegTech, Digital Lending, InsurTech, Wallets, and a lot
more fragments are seeing development and advancements consistently.
FinTech 3.5
The year 2014 onwards saw a non-direct ascent of the two most crowded
nations in FinTech; in particular China and India. Without enormous chains of
mind-boggling actual financial frameworks, these two nations saw an
extremely speedy development in the FinTech area. This alongside FinTech
advancements in Africa is considered as the development motor for
2014-2018. This is driven by SaaS advancements like financial programming
by Indian IT organizations, m-Pesa in Africa, Payment banks in India, Alipay in
China to give some examples.
FinTech 4.0

FinTech is forming the fate of monetary administrations, and conventional

banks and monetary associations need to adjust rapidly to the changed
climate to endure. Different new companies have disturbed the market and
have raised the stakes as far as mechanical progression, yet in addition
plans of action and all the more critically, client experience. It is assessed
that 59% of clients in North America, 61% in Western Europe and 59% in the
Asia-Pacific are utilizing FinTech items. While a few banks have gained
ground in reception of new FinTech administrations, numerous investors
have not yet understood the extent of progress the monetary administrations
industry is going through and think little of the effect FinTech 4.0 is having on
clients, who are definitive disruptors. Monetary associations should foster a
FinTech 4.0 system to guarantee their proceeded with endurance in the midst
of firm contest. 80% clients feel FinTech organizations offer quicker types of
assistance than banks.
Figure 3: Evolution of the digitization of the financial services
industry
(Source: FinTech-Evolution - Alt and Puschmann 2016, pp. 36)

Global FinTech Market

● The worldwide FinTech market was esteemed at INR 11,334.92 Bn in
2019 and is relied upon to arrive at INR 32,107.83 Bn by 2025, growing
at a CAGR of 18.12% during the 2020-2025 estimate time frame
● The market's development can be credited to the flourishing
worldwide advanced installments area, computerized business market
 ● The development of framework based innovation, through application
programming interfaces (APIs) would further drive the worldwide
FinTech industry during the figure time frame
● Blockchain is relied upon to disturb the monetary exchange industry
across the world, inferable from its worldwide reach and low handling
charge
● Moreover, functional progressions gave by chatbots, mechanical cycle
mechanization (RPA), and circulated record innovation (DLT) are relied
upon to bring more precision and productivity to FinTech applications
● Asia-Pacific is the quickest developing FinTech market, universally,
with critical venture openings, and developing business sectors like China
and India Financial companies offer mobile-based financial apps to enhance
the financial services offered; it also helps to succeed in more customers and
increase awareness about online services. Solution providers are offering
financially secure e-commerce
platforms with increasing demand for e-commerce apps among users.

Figure 3: Market size and growth forecast (2018-2025e)

(Source: FinTech Market in India 2020)

Banks and financial institutes are adopting financial technology like banking
apps, online banking, and web-based and app-based insurance services to
extend the productivity and efficiency of business operations.
Solution providers are offering financial services with innovative and new
technologies in social trading, e-commerce, wealth management, payments,
and other financial transactions.

Solutio
n providers are integrating advanced technologies like AI, robotic process
automation, blockchain, and cryptography in financial services to boost the
performance of business operations.

Figure 4: Global FinTech Market – Overview

(Source: FinTech Market in India 2020)

Key Drivers of the FinTech Market

● Increasing demand for mobile banking applications and e-commerce
platforms among users for a more user-friendly platform to perform
financial transactions is anticipated to drive the FinTech market.
● Increasing adoption of advanced technologies in business operations
by banks and insurance companies rather than using legacy operating
systems is anticipated to spice up the demand for FinTech among
companies.
● Investors are collaborating with wealth management solution
companies to consolidate their position within the market and supply
advanced solutions in financial technologies, this is often expected to
supply significant opportunities to solution providers of FinTech.
 Figure 5: Consumer FinTech Adoption
(Source: an-introduction-to-FinTech-key-sectors-and-trends.pdf (spglobal.com))

In
attempting to decide the contrast between FinTech clients and non-clients,
EY found practically no curveballs. The age classes that were probably going
to be drawn to FinTech arrangements are related to those probably going to
utilize computerized gadgets. These buyers are more youthful (matured
25-44).

Figure 7: Consumer FinTech Adoption by age category

(Source: EY July 2017 - The Financial Brand)

This is likewise the segment classification of heavier monetary item clients,

property holders, and more taught buyers. Lucky for FinTech suppliers, these
Against Money Laundering
To keep away from the danger of illegal tax avoidance, FinTech needs to
satisfy its Anti-tax evasion (AML) commitments in the areas they serve.

Types of FinTech Companies in India

B2B (Business to Business) Model

FinTech helps consumers to avail themselves of economic services on

different fronts. The business entities which were subjected to a posh loan or
application process can now take easy financial aids using FinTech. The
approaching old concept of FinTech helps business houses to induce loans
using mobile technology or web-based platforms in easy steps. The event is
very beneficial, especially for tiny and medium- scale industries.

B2C (Business to Customer) Model

FinTech is benefiting an oversized number of consumers with different credit

needs. FinTech is assisting individuals with raising credit and burning through
lots of monetary administrations with comfort. Hyper personalization and
superior quality of services providers make sure the prominence of FinTech
over their traditional counterparts. The prominent consumer services are
money transfer facilities,
budgeting apps, easy credit facilities, operate lending, and financial activities
in their peer group.

(Source: World FinTech Report 2020)

Digital /Mobile Payments

These payment options provide access to create digital payments and trade
with banks, commercial companies, central banks, hedge funds, forex
brokers, investment management funds, and investors. Consistent with
reports, the world payments market is estimated to be 1 trillion US dollars.

Insurance

FinTech has disrupted the bulk of services within the financial industry, and
insurance isn't any exception. The purported "Insurtech" industry is drawing in
strong speculation from investors from one side of the planet to the other.

Crowdfunding

Crowdfunding platforms allow entities to boost money from internet or app-

based users for his or her business operations. FinTech administration
permits the entrepreneur or sets up elements to pool assets from various
assets from one stage.
Digital lending /P2P Lending

The digital lending sector is taken into account as the foremost progressive
arm of the FinTech revolution. Purchasers would now be able to get credits
and advances utilizing their cell phones. The lengthy procedure has been
reduced to a matter of some clicks. Consumers can get easy loans for
whatever amount they desire, starting from ticket loans of meaner amounts
to capital loans of upper amounts. The universe commercial center for P2P
loaning is anticipated to develop at a CAGR of 60% to USD 1 trillion by 2025
from USD 9 billion out of 2014.

Stock trading apps

Stock trading apps are platforms that enable the user to shop for or sell
stocks at the faucet of their fingertips. Along these lines, diminishing the
intricacy and time taking technique of looking for or selling stocks into a
course of not many taps of their finger.

Robo Advisors

The Robo Advisor segment of FinTech could be a confluence of AI and

Financial concepts. It is a wealth management program that uses AI to
function. It encourages purchasers to deal with their abundance in the most
productive way. This fragment is assessed to oversee resources worth 5
Trillion US dollars by 2025.

Budgeting Apps

Budgeting apps help the patron to stay a record of their financials. The
approaching old apps are strengthening by the technological ability not only
to stay track of resources but also get valuable alerts and advice on their
spending patterns.

What makes FinTech important?

Economic growth

The installments section inside FinTech is a significant empowering agent of

 o Dispatched new items
o Improved/streamlined existing items
o Distinguished and designated new client fragments
o More client driven methodology

● It is normal that by the final quarter of 2021, organizations will begin

seeing GNPA levels contacting 3 to multiple times of pre-pandemic
level and there could be some overflow even into the following
monetary year.
● With the normal liquidity crush in the underlying piece of the year,
collaboration in the space of co-loaning might be a significant topic for
the coming years. Numerous players can search for huge accomplices
in the financial space to accomplish pre-COVID-19 volume levels in Q4
and afterward resulting development, yet their assortment efficiencies
and execution during these test times will be the deciding component.
● In the Union Budget 2021, the public authority of India declared the
setting up of a FinTech centre in Gujarat International Finance Tec
(GIFT City). The FinTech Hub will help make around 150,000 positions
and speed up the utilization of man-made consciousness, AI, and so
forth it will drive tech- empowered expense working which will
enlighten the expanded significance of digitization.
● The spending plan for 2021 likewise assigned INR 15 billion to help
and lift advanced installments. Making an 'awful bank' is additionally
an intriguing move, pointed toward moving terrible resources of banks
to a resource recreation organization (ARC) and an associated design
to purchase out and pivot focused on resources, especially of public
area banks (PSBs).

High Customer Experiences - a Win – Win Scenario

Customers though are the first beneficiaries of any business; a win-win

scenario is also created for all including incumbent firms. If the customer
journeys are being effectively redesigned, it encourages customers to
consider financial institutions to be not only as service providers but also as
 Challenges of FinTech in India
FinTech despite having huge opportunities has still a tricky path to steer on.
Below is that the probable roadblocks list within the path of FinTech
enterprises
● It's not very easy to enter into the Indian market and perform because
of the restrictive regulatory framework designed to forestall fraud. It
acts as a large barrier for brand spanking new entrants. they have to
satisfy plenty of formalities before the beginning of its operations
itself
● Unbanked population, Poor infrastructure in terms of Internet
Connectivity, and low literacy level are the opposite hindrances. Still, a
large Indian population (48 percent) doesn't have bank accounts which
are a requirement for conducting online transactions. While people
have bank accounts they still face the problems of poor internet
connectivity which takes more intervals to end the transaction. So
people tend to prefer a cash transaction instead of a web transaction.
Keeping aside, the purpose of getting a checking account and internet
connectivity the bulk of the Indian population still doesn't have enough
financial literacy level suitable to travel for it.
● It's very tough to vary the conservative approach of merchants and
users who deal the daily transactions with cash. The bulk of the aged
people are doing these transactions in cash for an extended time and
it’s hard to suddenly change their old habits and introduce them to new
avenues at this age.
● Different frauds resulting in loss of cash in online transactions are an
awfully hard bite to swallow for the shoppers. People’s money is looted
by the fraudsters by using technology and this has been a good
challenge ahead of the FinTech firms. Therefore, the firms indeed
should work effortlessly for bringing improvements in infrastructure
and being more consumer-friendly.
● FinTech in India is bereft of a scarcity of presidency
support and Incentives for shielding their interests. At a really basic
level, this demoralizes the entrepreneurs. They weren't provided the
correct guidance and support to start out though it's something for the
betterment of the country’s economy still.
 Challenges Impacting the FinTech Sector

1.Uncertainty in Regulation:
India is one of only a handful of exceptional purviews with a particular
Payments and Settlements law to accommodate guideline and management
of installments and settlement frameworks in India and to assign the
Reserve Bank as the expert for the reason. After the administrative fillip, India
actually has the best approach as far as giving security to business stages. A
couple of guidelines including guidelines for safe speculation leaves, its
remain on cryptographic money, installment guidelines by NPCI, and so on
are as yet developing and ongoing changes in the administrative situation
will be consolidated thinking about the dynamism of the FinTech business.
Further, cross-line installments are as of now not being channelized through
trendy new companies and get led through age-old financial channels. A
uniform norm of training (across locals), a usually deciphered language, and
normalized KYC standards combined with proportionate guidelines can open
up an immense window of unfamiliar exchanges through FinTechs.

2.Discovery of Platforms:
As a result of an abrupt ascent in FinTechs openings, numerous players have
begun taking an interest and opening up their individual FinTechs
incomparable or covering spaces. There are various FinTech new businesses
making it swarmed to make a brand review among all. To catch development,
a portion of the overall industry and clients in this generally divided market
will be trying for players except if combination turns into the thing to take
care of.

3.Data Security Risk:

Information spills, stage vacation, and data burglary have become very wild
in the FinTech space. Information, computerized reasoning, and AI are the
foundation of FinTechs. Fostering a solid system to ensure information is of
central significance and players will need to put profoundly in components to
control this danger and agree with administrative prerequisites towards
information security. Further, control of information and the decision of
offering the individual information to different applications and sites.
mindfulness and advanced schooling to that degree are as yet inadequate
with regards to prompting information spills and improper utilization of
classified information.

4. Lack of trust and awareness:

Because of an absence of mechanical progressions, mindfulness, and
variation to these FinTechs, the infiltration of these administrations has so far
stayed confined to metros and top-level urban communities. This imbalance
of access and its absence of provincial entrance and mass variation in lower-
level urban areas will stay the significant prevention and the significant
development driver also for the area. Till then, at that point, the dependence
on neighbourhood moneylenders and inclination for cash exchanges will
proceed.

5.Systemic Risk:
With the colossal development of the FinTechs and the wild development in
hidden misconducts because of the idea of the credit stream, have
prudential guidelines controlling the framework wide danger multiplication.
Customary banks give signs of progress sourced from Deposits, though
these FinTech organizations loan from Debt Funds/Equity Funds. In this
manner, the danger can saturate to different classes of individuals including
financial backers, shoppers, and empowering influences.
 Examples of FinTech in India

Unicorns in FinTech
A unicorn organization, or unicorn start-up, is a privately owned business with
a valuation of more than $1 Bn. As per Hurun Global Unicorn List 2020, India
is home to 21 unicorns, altogether esteemed at $73.2 Bn and FinTech
organization Paytm is India's most elevated esteemed unicorn, at $16 Bn.
India has added three new unicorns to the rundown in 2020. Alongside being
the most elevated esteemed Indian unicorn, FinTech organization Paytm is
additionally the most elevated gainer in the Indian unicorn classification. Out
of absolute unicorns in India, 1/3rd are FinTech organizations.

Name: PayTM
Founded: 2010
Segment:
Payments

Figure 48: Paytm logo

Paytm and is India's biggest payment organization that offers purchasers

multi-source and multi-objective payment arrangements. They permit
purchasers to make payment from any financial balance to some other
ledger liberated from cost, i.e., 0% fee charges. More than 8 million dealers
have benefited from its far-reaching payment arrangements.

Paytm was established by Vijay Shekhar Sharma and is claimed by One97

Communications and is authorized by RBI. The Paytm application permits
clients to search for both physical and advanced merchandise, and
furthermore pay for DTH plans, bill payments, and mobile recharges.

The organization cooperated with Alibaba's distributed computing arm –

'AliCloud' to grow its payment network at a worldwide scale. They have
financial backers like Berkshire Hathaway, SoftBank Group, and MediaTek and
surprisingly raised an
undisclosed sum from Ratan Tata in March 2015. It is ostensibly the greatest
FinTech organization in India.

Paytm gives an application-based wallet to buyer installments. It likewise

gives an online wallet to versatile re-energize, charges installments, travel
appointments, inn and ticket booking, booking chamber, gold buy, gifts, and
so on It offers banking administrations, Mastercards, advances, and
speculation stages for protection, common assets, and then some. It
additionally offers Paytm Mall for internet shopping of versatile, garments,
food, frill, hardware, toys, and then some.

The most effective method to utilize Paytm:

1)Make a Paytm account utilizing your portable number and email ID.
2) You can add cash to your 'Paytm Wallet' by means of 3 substitutes -
net banking, charge card, or Visa
3)You can move cash to another person by choosing the 'pay or send' choice.

4) You can make installments to others or ledgers on Paytm by checking

a QR code.
 Findings
The study examines the definition of FinTech, emerging trends in FinTech,
the impact of FinTech on financial institutions, risks from FinTech
innovations, and future opportunities. FinTech is transforming the world of
finance faster than ever before using newer technologies. Some of the key
findings from the review of literature are:

FinTech has 64% global consumer adoption; 96% of global consumers are
aware of digital payment services, 68% of consumers prefer non-banking
institutions for financial services and 46% of consumers are willing to share
their banking data with the non-banking firm are key findings of 2019 FinTech
consumer survey. On the SME segment, 25% is the global adoption rate, 56%
use banking payment & FinTech service, and 46% use FinTech financing
service (Global FinTech adoption, 2019).

Digital payment has maximum awareness and adoption rate, with India and
China is a global leader. It has become the backbone for non-finance
industries like insurance (comparison, purchase), transportation (e.g. radio
taxi), telecom & utility (recharges, bill payments), travel (bookings, payments,
offers), hospitality (booking, payments), entertainment (content purchases),
FMCG (point of sale), e-commerce, etc. Even, the government in many
countries like India is carrying out direct fund transfers for purchases and
subsidies to eliminate corruption and reduce the cost of a transaction. Digital
payment shall continue as core FinTech services with further innovation.

Banks are driving initiatives to encourage FinTech innovation, they need to

address challenges from people, processes, and organizational culture.
Neobanks are posing challenges for traditional banks by offering innovative
products at a lower cost.

Regulatory bodies and central banks are supporting FinTech innovations by

setting up sandbox environments and policy changes for licensing and
governance. The regulator needs to leverage FinTech innovations for its
governance and supervision function and be more proactive using newer
with trusted intermediaries is a powerful capability of blockchain and has
strong use cases, like diamond stone tracking from mining to retail store,
organic farming from farmer to market, land records in maintaining a
transparent history of ownership and sharing secure medical records of a
patient.

Newer technologies like cloud computing, blockchain, artificial intelligence,

cognitive learning, machine learning, robotics, augmented reality, big data,
IoT, and drones are leveraged by FinTech firms.

IMF as a global financial institution believes FinTech can improve cross

border payment service, cost of the transaction, and transparency using
blockchain distributed ledger technology.

Digital insurance, digital invoicing, electronic factoring, electronic leasing,

crowd investing and interlinkages of cryptocurrencies other than bitcoin are
newer topics where further research can be carried out.

Investment advisory using robots has the potential to disrupt the investment
advisory business. These robo-advisors can meet the customer expectation
of trust and transparency, at a lower cost, and with better knowledgeable
information; however, customers still expect a human interface for investment
advisory, which can be addressed by a hybrid model of a human face along
with a robo-advisor.

Conclusion
The scene of the banking and the monetary area has gone through an
extraordinary change since the 2008 Global Financial Crisis, demonetization,
and COVID 19, attributable to monetary innovation firms, prevalently known as
'FinTechs'.

According to MEDICI India FinTech Report 2020 second Edition, India had the
second-largest number of new FinTech new companies over the most recent
three years, directly behind the US. Likewise, inside FinTech fragments, Digital
installments have been at the front line of driving India's FinTech area.
One more significant pattern expected to get up to speed this year is the
worldwide acknowledgment of digital money. For instance, the European
Bank has made a stride nearer towards the planning of an advanced Euro.
General assessment with respect to the equivalent is being arranged, and
very soon, we are all together going to perceive how to open Europe is to
tolerating crypto coins.
After FinTech, watch out for Regtech and Wealthtech
Going a stage forward, FinTech that represents monetary innovation will see
the development of Regtech or Regulatory innovation and Wealthtech or
abundance the board innovation. It fundamentally implies that lawmakers or
controllers, monetary and innovation organizations will meet up to work with
advancements. Anticipate that these three industry players should function
as three columns to achieve a reformist change in the area cooperatively.

Observation
The digital and technological transformation changed business activities
across all enterprises, and the financial and banking area is no exemption.
What is encouraging is that the Indian government and regulatory institutions
have basically advanced and innovative as opposed to the obstructive
environment for FinTech in India. In any case, policies and governance
should coordinate with the speed of advancement in this area, especially to
guarantee secure and straightforward development.

Solutions and Recommendations

1) Unreasonably severe authorizing guidelines in India are one of the

principal disadvantages forestalling FinTech improvement. Overall
experience proposes that supporting campaigning and cooperation
with State establishments has helped FinTech fire up endeavours to
enter the market, acquire shoppers and controllers' trust and draw in
financial backers. This experience could demonstrate helpful in Indian
conditions.
2) Affiliations and Federations of Chamber of Commerce ought to advise
the populace about FinTech administrations that are now accessible
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