Fintech and Digitalisation of Financial Services: An Overview

Abstract

Fintech refers to use of finance and technology together to increase the efficiency of activities related to finance and automation of financial services. The Financial Stability Board (FSB) define fintech as “technologically enabled financial innovation that results in business models, applications, processes or products with an associated material effect on financial markets and institutions and the provision of financial services”. With the advancement of technology, fintech ecosystem at global and national level continues to grow at fast pace. Fintech is considered as technological innovation in the area of financial services which use digital platforms to bring out changes in the existing systems. Penetration of mobile and digital banking has kept the movement of fintech services at larger pace. The purpose of this study is to understand the role of fintech in delivering financial services, to look over the major driving forces that encourage fintech services and also to understand the major challenges faced by Indian Fintech firms. The present study is purely conceptual and descriptive in nature and the secondary data pertaining to the study has been collected from published articles and reports of NASSCOM, MEDICI and KPMG etc and author has collected data from online sources. The findings of the study revealed that Vibrant investment ecosystems, digital infrastructure, demographic factors, flexi policies of government were the major triggers of fintech revolution.