EMERGENCE OF FIN TECH

COMPANIES
BY R20BC565
What is a FinTech company?
• The term Fintech (Financial Technology) refers to
software and other modern technologies used by
businesses that provide automated and imporved
financial services
• Fintech refers to software, algorithms and applications
for both computer- and mobile-based tools. In some
cases, it includes hardware, too—like smart, connected
piggy banks or virtual reality (VR) trading platforms.
Fintech platforms enable run-of-the-mill tasks like
depositing checks, moving money among accounts,
paying bills or applying for financial aid. They also
encompass technically intricate concepts like peer-to-
peer lending or crypto exchanges.

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 Fintech Revolution in India
• India has welcomed the marvels of financial technology in the
banking and finance sector wholeheartedly. Primarily a cash-driven
country, India took the necessary step towards creating a cashless
society. A range of fintech services and software changed the way
the people carry out their daily transactions and the way they handle
their money.
• Such a transformation in financial behaviour was brought by the
association of technology and the financial sector. Fintech
ecosystems have made India ripe ground for investments and
funding coming in from the big players. Even indigenous firms are
playing a significant role in the development of this massive
industry.
• Currently, the sector seems to be growing at a very rapid
pace. Indian markets are full of startups and have valuable support
from the banking sector and the Government.

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Fintech Industry - Leading Fintech
Companies in India
• Paytm
• Policybazaar
• BillDesk
• Pine Labs
• Unified Payments Interface (UPI)

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Fintech Industry - Factors Behind
Growth in India

• Neobanking
• Lending Platforms
• Rise Of Digital Payment
• Insurtech

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Challenges for fintech sector
Like any other sector,indian financial sector also faces
some challenges that could impact it’s growth.Some
challenges are structural in nature which are likely to have
an impact across most segments of fintech.
1.Absence of fintech specific regulations and regulator
2.System risk
3.Data security and privacy risks

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Government Initiatives Driving
Fintech
• Jan Dhan Yojna
• Digital India
• Unified Payments Interface (UPI)
• Trade Receivable Discounting System (TReDS)

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FUTURE OF FINTECH IN INDIA
• As per a report by BCG and FICCI, the Indian fintech sector is
poised to reach a valuation of $150-160 billion by 2025,
which is presently at $50-60 billion.
• For the sector to have sustainable growth for a long time,
there is a need for collaboration between banks and finTech.
With more and more collaborations among industry players,
irregularities in the sector will clear out, providing a
frictionless customer experience such as online bank account
opening and KYC, etc.
• Additionally, a lot of the Indian market is underpenetrated.
And, with more penetration in categories like online lending,
insurance tech, wealth management platforms, credit, and
working capital lending, the sector will witness huge growth in
the coming years.

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CONCLUSION

• Over the next five years, India’s booming FinTech

industry is estimated to add another USD 100 billion in
market-valuation. Most successful FinTechs would
create deep differentiation on their core offerings, while
some may be able to capture the ecosystem-play. A
number of Indian FinTechs will also expand offerings
beyond domestic borders. To facilitate this growth, all
stakeholders have a role to play. Collectively—
FinTechs, Financial Institutions and policymakers can
script the next, global success story for India’s FinTech
sector.

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BIBLIOGRAPHY
• https://www.iflr.com/
• https://web-assets.bcg.com/
• https://thestartuplab.in/

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THANK YOU