AN OVERVIEW OF FINANCIAL TECHNOLOGY IN INDIA

One of the Financial Technology solution is Unified Payment Interface (UPI), this is well
known. Financial Technology is commonly known as Fintech. Financial technology (Fintech)
along with UPI is steadily penetrating and shaping the global financial system in the manner it
operates. (Gartner) published a blog on financial technology (FinTech), ‘Financial
Technologies (Fintech’s) are start-up technology providers that approach financial business in
innovation (sometimes disruptive) ways through emerging technologies. Financial
Technology (Fintech’s) can fundamentally change the way in which a financial services
institution’s products and services are created, are distributed, and generate revenue. The term
may also refer to the technologies these providers offer’. It also known for its seamless and
transparent financial transaction. Due to this feature, Financial Technology (Fintech) is known
as digital/disruptor in financial sector. Currently, traditional banks are collaborating with
Financial Technology (Fintech); which would help them in improving competition amongst
the traditional banking sectors. This partnership will also allow the traditional banks improve
and develop tailor-made products and services for its existing and future customers. Due to
growing importance of Financial Technology (Fintech) globally, it has attracted around US$
12Bn in Q2 of 2019. In India, there are 1,000+ start-up companies in Financial Technology (Fintech) Indian market
the start-up culture was recorded a decade back but has only started gaining importance in
recent years. This number is rapidly growing to cater the un-tapped Indian consumer base.
Still, in India Financial Technology (Fintech) has not replaced the traditional banking system,
however making in-roads as a parallel platform. The Indian banks should swiftly adopt to
growing acceptance of Financial Technology (Fintech) in banking space by partnering with
them for the overall betterment of its customers.