FINTECH

Father of Fintech-Dee Hock

Hock was born in North Ogden, Utah, in 1929 and
attended Weber State University where he graduated in
1949.In 1968, Hock was a vice president of National Bank of
Commerce, a local Seattle, Washington, bank that
was franchised by Bank of America to issue its credit card
brand ,Bank Americard.

“Visa was founded by Dee Hock, a man who

deserves credit as the Father of Fintech”.
Mobile wallets and payment apps
Crowdfunding
Cryptocurrency and blockchain
Robo-advisors
Stock trading
Insurtech
Artificial intelligence
Blockchain
Cloud computing
Data
Types of fintech
Mobile wallets and payment apps are some of the
most ubiquitous forms of fintech. Services like
PayPal, Venmo, Square, ApplePay and Google
Pay allow peers to transfer money to each other or
merchants receive payments from customers.
Crowdfunding platforms like Kickstarter and Gofundme
have disrupted traditional funding options by allowing
platform users to invest their money in businesses,
products and individuals.
Cryptocurrency and blockchain technology are some of
the most well-known, and most scrutinized examples of
fintech. Cryptocurrency exchanges, such
as Coinbase and Gemini, allow users to buy or sell
cryptocurrencies. Blockchain technologies also have the
potential to move into industries outside of finance to
reduce fraud.
Robo-advisors consist of algorithms based portfolio
recommendations and management to lower costs and
increase efficiency. Example Betterment, elevest.
Stock trading apps, such as Robinhood and Acroms
have become a popular and innovative example of
fintech as investors can trade stocks from anywhere
with their mobile device instead of visiting a stockbroker.
Insurtech companies have disrupted many different
types of insurance, such as car and home insurance.
Companies like Oscar Health and Credit Karma are
examples of insurtech companies that have entered the
healthcare and personal finance industry.

FIRST FINTECH COMPANY

PayPal (1999) was one of the first fintech
companies to operate primarily on the Internet.
This is a breakthrough company that has
revolutionized further with mobile technology,
social media and data encryption. This fintech
revolution has brought about the mobile payment
apps, blockchain networks and social media
payment options that we regularly use today

A Brief History of Fintech

FinTech may look like a series of new innovations, but the basic
concept has been around for some time. Credit cards in the early
1950s represented the first FinTech products generally available,
as consumers no longer have to carry physical currency with them
in their daily lives. From there FinTech has evolved into a banking
mainframe and online stock trading service.

A – Artificial Intelligence
Artificial intelligence (AI) is one of the most important pillars of
FinTech. It is often incorporated into cloud computing
technologies and helps financial institutions analyze their data
more efficiently. AI and machine learning (ML) capabilities have
enabled more advanced predictive analysis, personalized
recommendations, and better customer service chatbots.

B – Blockchain

Blockchain is one of the biggest crazes right now, especially in

the FinTech industry. Blockchain creates a highly secure,
decentralized, anonymous chain of record. It can be used to
keep a history of financial transactions and is the backbone of
cryptocurrencies such as BitCoin and Ethereum.

D – Data

The digitization of data and increase in analytic capabilities has

helped FinTech companies improve operations for a number of
businesses. For example, FinTech services analyze financial
spending data to provide organizations with insight into
consumer behaviors based on past history. This helps
businesses with their marketing campaigns and enables them
to better address the needs of their target markets.

C – Cloud Computing
Cloud computing uses the Internet, also known as “the
Cloud”, to deliver computing services and IT resources to users
on demand.
It promotes faster innovation, economies of scale, and flexible
resources. The
pay-per-use nature of cloud computing has also inspired a new
business model, Software-as-a-Service (SaaS), that many
FinTech companies have adopted.
Companies such as Shift Technologies and Billtrust sell their
fraud detection and billing software, respectively, to businesses.
India emerged as global fintech
superpower, likely to become $1 tn
industry by 2030: Report
There is ample room for growth in the fintech sector, especially in

emerging markets, given that 1.5 billion adults globally are still unbanked,

with an additional 2.8 billion adults underbanked. A recent report by IIFL

FinTech highlighted that the fintech market of India is considered as a

global fintech superpower and is set to cross USD 1 trillion by 2030.

With a rate of 87%, India is far ahead of the global average of 64% in the FinTech
adoption race. By 2030, it is anticipated that the promising Indian FinTech market
will generate $200 billion in revenue and $1 trillion in AUM as suggested by a
study conducted by EY.

As a home to over 2100+ FinTech companies, India is the third-largest fintech

ecosystem in the world. Out of the existing FinTech companies in India, 67% were
established in the past 5 years. The past 65 years have been nothing less than
phenomenal for FinTech in India. Many things have changed since the
introduction of credit cards in the 1950s. ATMs revolutionized cash withdrawals
from banks and the advent of the internet in the 1990s catapulted the fintech
industry to new heights. Electronic payment structures, web-based business
practices, portable banking, and bank digitalization have also resulted in a
substantial change. While 2022 saw the rise of many new trends in the financial
technology sector. Many of these trends are set to become even more popular
while we are also hopeful about new ones to come up. Here are some predictions
about the future of finance and FinTech in 2023:
More people will opt to ‘Buy Now and Pay Later’

The “buy now, pay later” (BNPL) model, since its inception, received
both bouquets and brickbats, with plenty of questions around the lack
of transparency. In 2023, governmental authorities are expected to
scrutinize and implement regulations requiring lenders to perform
affordability tests before approving loans. Startups believe the
regulator should find ways to address the challenges faced by BNPL
companies even as it looks to protect the customers and the public’s
money.

Collaboration between banks and fintech players can boost credit

access to the underserved segment and SMEs because 75% of MSME
lending in the country still is led by banks. This will continue to be a
massive opportunity for fintech players in 2023.

BaaS will evolve

The evolution of BaaS Banking-as-a-Service (BaaS) will evolve to

include a great range of features and overcome some of its previous
limitations, enabling fintech and legacy players to build truly unique
offerings and gain long-lasting customer loyalty. If financial
institutions are serious about innovation they need to start thinking of
themselves as data companies in 2023. This mindset shift will set
them up to embrace real-time banking and implement highly customer
-focused solutions.

The rise of embedded finance

Embedded finance is a type of fintech trend that involves the

integration of financial services, such as wealth management,
consumer lending, insurance, and payments, into non-financial
companies. In 2021, the global value of the embedded finance industry
reached $43 billion, with experts predicting it will grow to $141 billion
by 2025, driven in large part by the embedded payments sector. In the
coming years, expect to see companies using embedded finance to
integrate financial services in non-bank products and business
processes, as well as banks using it to court the custom of SMEs.

Credit scoring will Transform with embedded digital fingerprinting

Financial institutions, internet lenders, and other entrepreneurs are

seeking quick and effective methods for analysing new customers and
loan applications, preventing fraud, and automating the pre-approval
process. Fintech innovations like virtual fingerprints and AI-driven
credit scoring can help to streamline this process and make it more
cost-effective. For example, banks may use digital fingerprinting to
capture important user and client information from their website and
integrate it into comprehensive customer databases and reporting.
This information can include details such as device type, location, ISP,
and mobile phone provider. Smart credit scoring, which incorporates
data such as social media activity, IP analysis, assets, and earning
predictions, can help lending and financial institutions determine if a
user is trustworthy.

financing methods will become more popular

The use of alternative financing methods, particularly recurring

revenue financing, is anticipated to grow in popularity in 2023.
Recurring revenue financing allows businesses to convert their
ongoing revenue streams into immediate capital. This method enables
founders to receive the lifetime value of their customers upfront and
helps them balance their cash inflow with the cost of acquiring new
customers (CAC).

Recurring revenue offers a flexible and accelerated way for a business

to receive a quick cashflow boost without the need for financial
covenants such as collateral or guarantees that are often required in
traditional debt financing.

In conclusion, we can say that despite concerns about the potential for
economic recession in 2023 and geopolitical events, the fintech space
is expected to thrive due to the acceleration of digital momentum
brought on by the pandemic.