An Analytical Study of Financial Technology in Banking Business in India (2018-2021)

Abstract

This paper provides an analytical study of Financial Technology (FinTech) in the Indian banking business between 2018 and 2021. It analyzes the faster-than-ever evolution of the FinTech space, defined by stupendous market expansion, investment booms, and the extensive usage of digital payment products such as UPI. The research examines FinTech's far-reaching influence on the existing models of banking, such as changes in sources of revenue, improvement in the efficiency of operations, and the redefinition of the expectations of customers. Additionally, it outlines key challenges like cyber threats to security and data privacy issues, as well as the huge potential of FinTech to push forward financial inclusion. The paper also discusses the effective regulatory responses and new collaborative models between incumbent banks and FinTech companies. The reports highlight FinTech's position as a two-pronged force—both disruptor and catalyst—fueling innovation, achieving financial inclusion, and necessitating a fundamental re-engineering of the Indian financial landscape.

Keywords: FinTech, PayTech, LendTech, InsurTech, WealthTech, Neobanking, Distributed Ledger Technology, crowdfunding, Cryptocurrency, Blockchain, Phygital, India Stack, underbanked, frictionless finance