Technological advances in recent years have led to a growing number of fast, electronic means of

payment available to consumers for everyday transactions, raising questions for policymakers about
the role of the public sector in providing a digital payment instrument for the modern economy.

For the modern economy policymakers raising questions about public sector role in providing a
digital payment instrument,

Recent years advanced technologies have led to a growing number of fast electronic in term of
payment available for everyday transactions

Understanding Fintech
Broadly, the term "financial technology" can apply to any innovation in how
people transact business, from the invention of digital money to double-entry
bookkeeping. Since the internet revolution and the mobile internet/smartphone
revolution, however, financial technology has grown explosively, and fintech,
which originally referred to computer technology applied to the back office of
banks or trading firms, now describes a broad variety of technological
interventions into personal and commercial finance.

Fintech now describes a variety of financial activities, such as money

transfers, depositing a check with your smartphone, bypassing a bank branch
to apply for credit, raising money for a business startup, or managing your
investments, generally without the assistance of a person. According to
EY's 2017 Fintech Adoption Index, one-third of consumers utilize at least two
or more fintech services and those consumers are also increasingly aware of
fintech as a part of their daily lives

What is Fintech (Financial Technology)?

The term fintech refers to the synergy between finance and technology,
which is used to enhance business operations and delivery of financial
services. Fintech can take the form of , a service, or a business that provides
technologically advanced ways to make financial processes more efficient
by disrupting traditional methods.

Fintech is short term for financial technology, which has grown explosively since internet
revolution and smartphone era in used to enhanced business operation and delivery of
financial services. Fintech provides financial process more efficient compared to traditional
methods and be used worldwide even though was once considered a complex way of
managing finance due to the rise of online banking and mobile-first platform.
Fintech includes different sectors and industries such as education, retail banking, fundraising
and non-profit, and investment management to name a few. Fintech also includes the
development and use of crypto-currencies such as bitcoin

With FinTech services now being commonly used by consumers globally, it’s clear that
FinTechs have become recognized financial services providers. The most used services were
in money transfer and payments, with around three-quarters of consumers having used a
service in this category. Usage was particularly prevalent in China, with the rate at 95%.
Other frequently used services included savings and investments, budgeting and financial
planning, insurance, and borrowing services. 

Commonly used globally, FinTech is recognized as financial service provider and mostly
used services are savings and investments, budgeting and financial planning, insurance and
borrowing services.
Eight ways FinTech adoption remains on the rise, By Gary Hwa, EY Global Financial
Services ,3 Jun 2019,

https://www.ey.com/en_in/banking-capital-markets/how-fintechs-are-a-world-of-choice-for-
small-and-medium-sized-enterprises

Artificial Intelligence (AI) and Machine Learning (ML)

Big Data and Data Analytics
Robotic Process Automation (RPA)
Blockchain

Some of the most prominent applications of fintech are mobile payments,

automated investment apps (robo-advisors), cryptocurrency, online lending
businesses, and crowdfunding platforms.

Technologies that Contribute to Fintech

  Crowdfunding Platforms

Crowdfunding platforms like Kickstarter, GoFundMe, and Patreon are the

result of developments in fintech. The platforms allow entrepreneurs and
early-stage businesses to raise funds from all over the world, allowing them
to bypass geographical boundaries and reach international markets and
investors.
 Commonly used globally, FinTech is recognized as financial service provider and mostly
used services are savings and investments, budgeting and financial planning, insurance and
borrowing services
digital currency is a balance or a record stored in a distributed database on the Internet
within digital files or within a stored-value card. How do digital currencies work?
When digital currencies are mined on their blockchains or transferred between users, they
must be stored until their new owner is ready to use them. That's where digital
currency wallets come into play. When you send or receive digital currency, that address is
recorded on the public ledger for your transaction.
A balance or a record stored in a distributed database on the Internet within digital files or
within a stored-value card is called digital currency. How do digital currencies work? Digital
currency wallet taken place once digital currency are mined on their blockchain or transferred
between users until ready to use, every transaction will be recorded on public ledger.

2. Mobile Payments

Mobile payment applications and gateways are one of the most prevalent
uses of fintech. Such applications allow users to carry out banking activities
without physically visiting a bank. For example, companies like Venmo and
Interac allow customers to send and receive money through smartphones
at minimal transaction fees.

3. Robo-Advisors

Robo-advisors are online investment management services that use

algorithms to optimally allocate assets and generate portfolios for
customers. They allow users of all age groups to engage in investment
activities at low fees with minimal manual effort.

4. Insuretech

The term insuretech refers to the application of technology to the insurance

model, which allows companies to provide tailored insurance services and
data security. Insuretech helps streamline the insurance process through
online claims filing and policy management.
 

5. Regtech

Regtech (regulatory technology) focuses on the automation of compliance

processes for financial institutions. It offers fast and cost-effective
management of large amounts of data, including transaction records and
compliance documents, such as corporate tax returns.

Artificial intelligence(AI) and Machine Learning(ML), Big Data and Data Analytics, Robotic
Process Automation(RPA) and Blockchain are technologies that contribute to FinTech while
Crowdfunding platforms, Mobile Payments, Robo-advisors, insuretech and Regtech
(regulatory technology) are applications of FinTech.

Digital currencies have emerged as an alternative form of money, unrelated to traditional money
and largely unregulated. Digital currency represents a wild frontier for investors who might be
shopping for gold or foreign currencies, with serious risks. digital currency is both a virtual currency
and a cryptocurrency - with computer encryption protecting coin supply and ownership

The idea of digital currency, in a broad sense, merges the traditional features of money with the
convenience of electronic transactions, the bank debit card being a leading example. However, the
public acceptance of electronic banking transactions has made possible the emergence of an
alternative form of digital money, not tethered to a bank account or other traditional store of value,
whose trustworthiness lies in the computer algorithms that underlie its construction and
distribution. On its face, the virtual currency would appear to be uniquely unqualified as a store of
value since virtual currency is just that. But “virtual” does not just mean synthesized or projected:
the algorithm that generates units of a particular virtual currency - like Bitcoin - can guarantee that
the currency remains within some pre-specified range of supply. In the case of Bitcoin, that supply
limit is 21 million Bitcoins. This sort of digital currency is both a virtual currency and a cryptocurrency
- with computer encryption protecting coin supply and ownership.

A CBDC could be an important instrument for central banks to continue to provide a safe means of
payment in step with wider digitalisation of people’s day-to-day lives. Public trust in central banks is
central to monetary and financial stability and the provision of the public good of a common unit of
account and secure store of value. To maintain that trust and understand if a CBDC has value to a
jurisdiction, a central bank should proceed cautiously, openly and collaboratively.

https://www.bis.org/publ/othp33.htm
an explanation of controlling principles of opinion, belief, practice, or phenomena. 2 : an
underlying reason : basis.