Habitués perspective towards Fintech in money market

*M. RANI SUBATHRA ** Dr.S.BULOMINE REGI

*Ph.D Full time Research Scholar (Reg.no-18211281012025) in Commerce Research Center,
St. Mary’s College (Autonomous) Thoothukudi, affiliated to Manonmaniam Sundaranar
University, Tirunelveli.
** Assistant Professor of Commerce & Research Supervisor, St. Mary’s College
(Autonomous), Thoothukudi affiliated to Manonmaniam Sundaranar University, Tirunelveli.
Email id: drregi23@gmail.com.

Abstract
Fintech is an emerging concept in the financial industry. Financial technology, often
shortened to agname of Fintech. It’s the technology and innovation together that aims to
compete with the delivery of traditional financial methods in more flexible mean through it
ingenious way. It is a dawning industry that uses technology to improve activities in
finance. The use of artificial intelligence and block chain to digital payments and roboadvisors,
smartphones for mobile banking, investing and payment services like UPI,E-wallets,mPOS-
acquiring,P2P crediting are examples of Fin technologies, which strive to make financial
services more handy to the common people. The benefits of Fintech services are reducing
operation costs and user friendly. This paper studied the different modes and avenues of Fintech
used by the habitué while transacting in various Financial activities. The primary data is
collected by using convenient random sampling method with the sample size 125 patrons
through a questionnaire. This paper analyse and found that habitués are consider more flexible,
time consuming and user friendly for doing their various financial transactions like money
depositing, transferring, insurance services, trading etc.at their fingertips using this Fintech.
Thus this paper concludes, core segments like Payments, Insurtech and Corporate banking
sectors are transforming to the newgen. As per the statistical report by MEDICI,2019 paves
way for the growth of AgriTech, HealthTech, PropTech concepts are emerging in the upcoming
years.

Keywords: Finance, Technology, Insurtech, Digital payments, Artificial Intelligence,

Cost Consuming, User Friendly and Core Segments.
Introduction
India’s financial technology (fintech) sector may be young but its growing rapidly,
fuelled by a large market base, an innovation-driven investiture landscape and benign
government policies and regulations. Several investiture startup popularize this emerging and
dynamic sector, while both traditional banking institutions and non-banking financial
companies (NBFCs) are playing catch up. Earlier, the National Association of Software and
Services Companies (NASSCOM) reported that around 400 fintech organizations operated in
India, boosted in large part by foreign firm investments in fintech-focused new opening
accelerators and incubators. NASSCOM predicts that India’s fintech software market alone
could touch US$ 2.4 billion by 2020, doubling on the current rate of growth. Historically, as
technology evolved, the financial services industry used to be relatively quick to adopt new
innovations in order to better serve customers. But all of this changed during the global
financial crisis of 2008. Currently, the FinTech industry is continuing to transform how
financial services are delivered and consumers will generally be great beneficiaries not only
from a user experience or convenience perspective but also one of the access concern and cost
saving.

Objectives
1. To study the emerging concept of Fintech and its scope in India
2. To know the key areas of implementation of Financial technology
3. To analyse the habitués view of using Fintech in various sectors

Key areas of Implementation of Fintech

At present, Financial technology has been used to regulate and automate insurance, trading,
banking services, and risk management.

 Peer-to-Peer (P2P) Lending Services: Organizations uses alternative credit models

and data sources to provide consumers and businesses with faster and easier access to
capital. P2P lending allows online services to directly match lenders with borrowers
who may be individuals or businesses. Examples are Lendbox, Faircent, i2iFunding,
Shiksha Financial, GyanDhan, and MarketFinance.

 Payment Services: Organization allows both private individuals and businesses to

accept payments over the web and on mobile without the need of merchant accounts.
 Transfers are made directly to the bank account linked to the payee in order to secure
against fraud. Examples are Mobikwik, Paytm, UPI,Oxigen Wallet and many E-
Wallets.

 Remittance Services: A few new ventures, albeit registered abroad, are trying to
address the gaps in remittance transactions (both inbound and outbound) as the current
process is cumbersome and expensive. These startups aim to muddle the current
monopoly held by firms like Western Union and MoneyGram.

 Personal Finance or Retail Investment Services: Fintech companies are also growing
around the need to provide customized financial information and services to
individuals, that is how to save, manage, and invest one’s personal finances based on
one’s specific needs and goals. Examples are FundsIndia.com, Scripbox, PolicyBazaar,
and BankBazaar.

 Miscellaneous Software Services: Organizations are providing wide ranges of cloud

computing and technology solutions, which improve access to financial services and in
turn increase efficiency in day to day business operations. Examples include Catalyst
Labs in the agriculture sector, Airtime Up which provides village retailers the ability to
perform mobile top ups, ftcash that enables SMEs to offer payments and promotions to
customers through a mobile based platform, Profitbooks (online accounting software
designed for non-accountants), StoreKey, and Humming\Bill.

 Equity Funding Services: This includes crowdfunding platforms that enables the
funding of a blueprint project or business venture by raising funds from enormous
number of people. Such internet-mediated platforms are gaining popularity across the
world as access to venture capital is often difficult to secure. These services are
particularly targeted at the early stage of a business operation. Examples include: Ketto
and Wishberry

 Cryptocurrency: India being a more white bread market where cash transactions still
dominate, usage of digital financial currency such as ‘bitcoin’ has not seen much
traction when compared to international markets. There are, however, a few bitcoin
exchange startups present in India – Unocoin, Coinsecure, and Zebpay. But there is no
legalization for cryptocurrency in India
Innovative Categorisation of FinTech
Transparent lineup of some of the most prominent FinTech innovations into categories
according to the areas of financial market activities where they are most likely to be applied
is as under
Payments, Clearing & Deposits, Lending & Investment Data Analytics & Risk
Market provisioning
Settlement capital raising management Management
•Mobile and •Crowd-funding Peer •Smart contracts •Robo advice Smart •Big data Artificial
webbased payments to peer lending Cloud computing e- contracts e-Trading Intelligence & Robotics
• Digital currencies Digital currencies Aggregators
Distributed ledger Distributed Ledger

Research Methodology
The research methodology depicts the research process and serves as guidance for the research
to carry out this study. It comprises of data source, sample size, sampling techniques and tools
of analysis. In this research study, the researcher has used the primary data obtained from 125
respondents working in various sector.
Research Design Descriptive Research
Study area Various cities in India
Study Population Employees working in various Financial sectors
Sample Size 125 Habitués
Sampling method Convenient Sampling
Nature of data Both Primary and Secondary
Sources of Primary data Survey method through Questionnaire
Sources of Secondary Data Journals, Previous Research reports, Magazines &
Websites
Statistical tools Measures of Central tendency- Mean, Standard
deviation, Skewness, Kurtosis, t-test and ANOVA
Data Analysis and Interpretation
The Primary data was collected through questionnaire consists of various parameters from the
patrons. The information generated through the survey is being reported through the tabulation
of categorical variables and the results are discussed below.
Table No.1
Descriptive Statistics

Particulars N Mean Std. Skewness Kurtosis

Deviation

Statistic Statistic Statistic Statistic Std.Error Statistic Std.Error

Gender 125 1.21 0.403 1.519 .217 0.309 .430

 Age 125 2.25 0.871 0.420 .217 -0.393 .430

Marital 125 1.85 0.361 -1.963 .217 1.881 .430

Status

Educational 125 2.09 0.789 -0.144 .217 -1.375 .430

Qualification

Annual 125 2.14 0.958 0.911 .217 0.720 .430

Income

Awareness 125 1.47 0.516 0.257 .217 -1.528 .430

regarding
FinTech
From the above table no.1 Gender, Marital status and Annual Income shows Leptokurtic. Age,
Educational qualification and awareness regarding Fintech shows Platykurtic. Gender shows
that 80% of the habitués were male and the remaining were female. Mean value of Age is 2.25
and it shows majority 48.9% of the habitués belongs to the age group lies between 31-40. The
mean value of marital status is 1.85 and it states that majority of the respondents were
unmarried 84.6%. The mean value of Educational qualification is 2.09 and it states majority of
the customers were professionals 37.8%. Annual income mean value shows 2.14 reveals that
47% of the samples are earning 5 to 10 lakhs is the majority one. The mean value of awareness
regarding Fintech is 1.47 which denotes 53.2% were fully aware regarding the various services
provided in financial sectors.

HYPOTHESIS I

Null Hypothesis: There is no significant relationship between Consumers highest place on

protection in revealing data and Personal financial management (PFM)
Table no.2
t test for Specified value (Average = 3) of Statements on Personal Financial
Management

Statements on Mean SD t value P value

Personal Financial management

PFM1 3.90 1.08 16.776 < 0.001**

PFM2 4.10 1.03 21.291 < 0.001**
PFM3 3.99 1.14 17.473 < 0.001**
PFM4 3.91 1.20 14.877 < 0.001**

Interpretation: Based on the table no. 2, Since P value is less than 0.01, the null hypothesis is
rejected at (** denotes1% level) 1% level of significance with regard to all the statements of
Personal Financial Management. Hence there is significant relationship between the
consumer’s highest place on protection in revealing data and Personal financial
management(PFM). Based on the mean score, all the statements on PFM is the above average
level. From this it is concluded that Consumers place the highest value on protection and
personal financial management (PFM), well above widely publicized FinTech concepts such
as peer-to-peer (P2P) lending and robo-advice.
Hypothesis II:

Null hypothesis: There is no significance relationship between level of satisfaction of the

habitués using Fintech and ‘Zero sum’ mind set of Fintech providers

Table No.3
Habitués satisfaction level and Service provided by Fintecher’s
ANOVA (Level of Satisfaction regarding Service Providers)

Particulars Sum of Df Mean F Significance

squares square Value

Between Groups (P2P) 01.197 4 0.298 0.657 0.625

Within Groups 54.615 120 0.454

Total 55.812 124

Interpretation:
Based on the table no.3 ANOVA result generated, the significant value is 0.625 and it
is greater than 0.05 at 5% significance level. Hence the null hypothesis is accepted since
there is no significance relationship between the level of satisfaction of the habitués
using Fintech and Zero Sum mind set of Fintech Providers.

Notable Findings
1. Majority of the habitués are in the age group of 31 – 40 and 80% of the respondents are
males.
2. The mean value of marital status states that majority of the respondents were unmarried
84.6%.
3. The mean value of Educational qualification is 2.09 and it states majority of the
customers 37.8% were professionals.

4. Majority 47% of the Habitues are earning the annual income of 5 to 10 lakhs.

5. The mean value of awareness regarding Fintech denotes 53.2% were fully aware
regarding the various services provided in financial sectors.
6. Based on the t-test, there is significant relationship between the consumer’s highest
place on protection in revealing data and Personal financial management(PFM). Based
on the mean score, all the statements on PFM is the above average level. From this it is
concluded that Consumers place the highest value on protection and personal financial
management (PFM), well above widely publicized FinTech concepts such as peer-to-
peer (P2P) lending and robo-advice.
7. Based on the ANOVA test, there are four broad categories of users for fintech:
 1) B2B for banks 2) their business clients 3) B2C for small businesses and 4)
consumers. Trends regarding mobile banking, increased information, data, and more
accurate analytics and decentralization of access will create opportunities for all four
groups to interact in heretofore unprecedented ways. It’s stated that customers are level
of satisfaction was good, a strong majority of consumers prefer to get value-added
services from their current primary banking or financial provider—mainly for reasons
of trust, value and convenience. Successful banks and other FinTechs financial
providers, will move beyond a “zero sum” mind set where one party wins at the other’s
expense and recognize that partnering is the wise path forward.

Scope for Growth of Fin Tech in India

India has a large unbroached merchandise place for financial service technology startups as 40
percent of the population are currently not akin to banks and 87 percent of transactions are
made in cash. With mobile usage expected to increase to 76 percent in 2020 from 68 percent
currently, and internet penetration unwaveringly mounting, the growth potential for FinTech
in India cannot be overstated. Moreover, by some estimates, as much as 90 percent of small
businesses are not linked to formal financial institutions. These gaps in access to institutions
and services offer important scope to develop Fin Tech solutions (such as funding, finance
management) and extend the market. Thus this paper concludes, core area segments like
Payments, InsurTech and Corporate banking sectors are transforming to the current generation
. As per the statistical report by MEDICI,2019 paves way for the growth of Agri Tech,
HealthTech, PropTech concepts are emerging in the upcoming years for the new generation.

Conclusion

Currently, the Fin Tech industry is persevering to transform how financial services are
delivered and consumers will generally be prolonged successor not only from a user experience
or convenience perspective but also one of access and cost savings. But there are also many
other benediction, one of them being financial inclusion. There are currently more than million
people around our country who are completely unbanked. They have no access to a bank
account or no more way to acquire fund and these are individuals for whom the only way to
save money is to keep it secret in their wardrobe, under their mattress, spice boxes etc. It
immortalizes a vicious cycle of scarcity. Goodness is that for the first time in history, we are
able to give them access to financial services. And this is just the opener. Let’s welcome the
Fin Tech revolution.
References

1. Vijay Aazhvaar – “FINTECH IN INDIA – OPPORTUNITIES AND CHALLENGES”

in https://www.researchgate.net/publication/331480921
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