Fintech and Banking: An Indian Perspective
- First Online: 25 June 2023
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- Amarpreet Singh Virdi 5 &
- Akansha Mer 6
Part of the book series: Sustainable Finance ((SUFI))
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The worldwide financial technology (FinTech) revolution is well underway. Given the centrality of banks in the financial system, it is vital to comprehend the risks and opportunities that FinTech presents to banks, their impact on the primary activities of financial intermediaries, and their involvement in modern financial ecosystems. There is a dearth of studies on Fintech and Banking in the Indian context. The current study tries to fill this gap by examining the expanding literature on FinTech-enabled services and the opportunities and challenges for Indian banks.
Furthermore, the rise of FinTech has allowed new competitors such as start-ups, BigTech, and neo banks or challenger banks to enter the financial services business. The study revealed that Bank Tech, Cryptocurrencies, Insurtech, Remittance, Mobile Payments, Consumer Finance, Investment Tech, Accounting, Alternative Lending, and Payments Tech are some of the Fintech-enabled services in India.
FinTech companies benefit from a more level-playing field than banks because they are less regulated. Nonbank FinTech firms might challenge banks in specific product categories where success is not related to what makes banks unique—namely, deposit-gathering capabilities and the possibility for synergies with borrowers provided by deposits—due to the unequal playing field.
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Department of Management Studies, Kumaun University, Bhimtal (Nainital), Uttarakhand, India
Amarpreet Singh Virdi
Department of Commerce and Management, Banasthali Vidyapith, Banasthali, Rajasthan, India
Akansha Mer
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Virdi, A.S., Mer, A. (2023). Fintech and Banking: An Indian Perspective. In: Naifar, N., Elsayed, A. (eds) Green Finance Instruments, FinTech, and Investment Strategies. Sustainable Finance. Springer, Cham. https://doi.org/10.1007/978-3-031-29031-2_11
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Past Perfect, Future Tense? Themes shaping the future of Fintechs in India
Prateek Roongta Rajaram Suresh Sheetal Jasrapuria
Indian Fintechs have been the posterchild of India’s digital growth story, with their growth propelled by a surplus of capital, maturing infrastructure and favorable underlying customer demographics. The good news for Fintechs is that India’s digital infrastructure is only expected to further mature and the underlying demand growth is expected to stay strong. This paper crystallizes the existing and emerging secular themes underpinning the success of fintechs thus far. However, the Fintechs will also have to operate in an environment with regulator(s) that are increasingly nationalistic, pro-consumer, and vigilant; licensed incumbents who are strengthening their digital capabilities; increasingly affluent and digitally savvy customers who are hungry for their financial needs to be met digitally; and most importantly, a large base of mass customers waiting to be digitally educated and serviced. The paper dives deeper into the granular vertical-specific themes that will shape the future of fintechs and the implications on payments, lending, wealth, insurance and Web3 fintechs.
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