(ISSN : 0970 – 9029)

Convergence of Finance & Technology: A Study on the Ascend of Fintech in India

Journal Name:
Journal of Accounting and Finance
Vol. 33 - No. 1
Author Name Organization Designation
Dr Sajana.K.V Trivandrum, Kerala Independent Researcher

Technology has been progressing and its influence on the banking and financial services sector in recent times is unchallenged. The depth and breadth of change being brought about by financial technology promises to redefine and reshape the sector as a whole. In today's world, there are huge number of financial transactions taking place every day. There are so many players in the market that its difficult to manage them. This is where Finance and  Technology come together. Problems faced by finance are solved by technology and growth of technology is managed by finance. Thus, there is symbiotic growth of both finance and technology. One's growth leads to and is dependent on other's growth. Traditional Banks and Financial Institutions have viewed technology as an enabler to business propositions, rather than creating new business propositions themselves. Financial Technology (FinTech) Companies however are changing that role by leveraging digital technologies to create new business propositions and target new market segments which hitherto were not possible. FinTech in the truest sense is the application of technology to offer new financial products and services to new market segments in an economically viable manner. From a business model perspective, the FinTech sector is marked by technology companies that either intend to disintermediate or partner with incumbent Banks and Financial Institutions depending on strategic narrative and market landscape. Hence, FinTech is increasingly becoming an important focus area for all the key stakeholders in India's Financial Services industry - Regulators, Traditional Banks, NBFCs, Payment Banks, Investors, Payment Service Providers, Broking and Wealth Management Companies, Insurance providers and pure play FinTech players. The purpose of this paper is to analyze the Indian FinTech and its implications on the Indian Financial Services.