With the rapid advancement in technology, financial services are changing at a

tremendous pace. FinTech has revolutionized the financial sector by redefining the
products, delivery channels, customer experience and providing new opportunities to
expand the scope and reachability of financial services. Financial Stability Board
(FSB) defined FinTech is as technologically enabled financial innovation which could
result in new business models, applications, processes or products with the related
material impact on financial markets, financial institutions and financial provision
services (Carney,2017).

In 2019, total global FinTech investment was over $135.7 billion 1(₹9,73,647.5 crores)
globally across M&A, PE and VC deals 2. The United States has shown a
considerable growth. Recently India is reported to have overtaken China in FinTech
funding due to corona virus outbreak3. The growing e-commerce market and the low
penetration of credit cards across China, India, Hong Kong and Southeast Asia has
have paved the way for digital lending platforms and fill the credit gap for Small and
Medium Businesses and micro-businesses who are unserved.

FinTech offers not only products and services but also facilitates process
improvements and improves customer experience/convenience. As per RBI (2018),
FinTech innovations are categorised into five groups according to their area of
application in the financial market.

Payements ,Clearing Deposits, Lending & Investment Data Analytics & Risk
Market Provisioning
and Settlements
Task: Capital Raising Management Managemet
Mobile and1)Adoption:
web based Ensure and sustain the Smart
Crowd-funding adoption
contracts Robo advice Big Data
payments2) Fulfilment: HowPeer todo distributor
peer lending manage its
Cloud computing Smart contracts Artificial Intelligence &
Digital Currencies Digital currencies
Unilever---distributor---Retailer E-Aggregators E-Trading Robotics
Distributed ledger Distributed Ledger
3) Add 1 Ultimate feature: Holistic features

1
1 USD = 71.75 INR on 01/12/2019
2
KPMG Pulse report 2019
3
“India overtakes China in FinTech funding” -Economic Times BFSI May 13, 2020