FinTech

Presented by:
Simran gupta -19167
Vedika -19420
What Is Fintech?
• Fintech is an industry composed of companies that use
technology to make financial systems and the delivery of
financial services more efficient
• Describes the intersection between software and technology to
deliver financial services.
• May refer to technical innovation applied in a traditional
financial services context or to innovative financial services
offerings that disrupt the existing financial services market.
•

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 Fintech Users

There are four broad categories of users for fintech:

• B2B for banks
• Their business clients
• B2C for small businesses
• Consumers
Fintech Impacts: Opportunities & Risks
Compliance Risks
Consumer protection (fair
lending and Unfair,
Deceptive, or Abusive Acts
and Practices), Bank
Secrecy Act/anti-money
Credit Risks laundering (BSA/AML), Operational Risks
Untested models and vendor risk management
Operational challenges in
algorithms,adverse applying innovations in existing
selection systems (incumbents), vendor
risk management

Efficiency Data
Better products, more Data security (cyber),
choices, lower prices privacy, data ownership,
impact of algorithms,
transparency, data
governance

Consumer
Experience Unknown Risks
Increased access,
greater transparency, Financial Development of new
activities outside of
clearer disclosure,
enhanced understanding Services supervisory framework

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 Elements of Fintech

Elements that contribute to the success of fintech:

• Block chain
• Artificial Intelligence (AI)
• Security
• Internet of Things (IoT)
• Cloud.
 Characteristics of a Fintech application:

• Multi-tier functionality: On a fintech application, thousands of

concurrent sessions are being run at a particular instant hence it
supports multi-tier functionality.
• Large-scale integration: A fintech application usually integrates with
numerous other applications including third party vendors for
transactions, user accounts, bill pay utility, etc.
• Multiple transactions are happening at an instant on a fintech
application thus having a high rate of transactions per second.
• Huge transactions are being made every second and that needs to
secure hence, security becomes a major characteristic in any fintech
software.
• Huge data calls for the need of massive storage system.
• Data being highly confidential and important is equipped with
disaster management.
• Day to day transactions’ track is kept in a recording section.
• Real time processing
• Batch processing
• Solid troubleshooting for customer issues
• Various users from various locations access the same application
hence, it should support multilingual users
• Fast and secure transactions
 Examples of Fintech
Fintech refers to an industry that is introducing technology in the financial
world. Today, Fintech is revolutionizing in the landscape of the financial
industry. There are several applications and examples available today which are
based on Fintech. Some of them are:
1) Crowdfunding Platform
Crowdfunding makes it easy for individuals to transfer their money if they use
applications and the internet. Now instead of visiting a traditional bank, you can
transfer money or make the transaction directly by going to the investor or
company.
2) Budgeting apps
Fintech introduced budgeting apps through which now it is easy for the
customers to manage, view their expenditures, total income and savings. This
would help people manage their money efficiently.
3) Mobile Payments
Fintech has made it easy for individuals to pay bills and make the transaction
using mobile phones. Now they do not need to wait in a large queue for their
turn to pay the bills. All the utility bills and transactions can be performed sitting
at home and office through mobile.
4) Open Banking
Open banking has facilitated individuals as well as banks by sharing the data of
customers among financial institutions which on one side if helps security of the
system, on the other side, it facilitates the customers by providing all of their
data at one place through which they could easily manage their money and
invest them at the right place.
India's fintech adoption rate has risen exponentially over the last 2 years led by
governments push towards a digitalised economy and financial inclusion.
Top 5 countries in fintech adoption are:
•87% India, china
•82% Russia and South Africa
•75% Columbia
•73% the netherlands
•74% the U.K, Ireland
India's growth stands at 59% the 2nd highest in the world and significantly
higher than the global average of 33%.
 Savings, Investments, and Financial Planning Segment

Robo-Advisors

Savings,
Investments, and Automated
Savings
Financial
Platforms
Planning
Segment

Financial planning is an
ongoing process to help
people make sensible Financial
decisions about money. Planning

Source: Federal Reserve System 11

 Payments Segment
Digital wallets are the electronic devices that
allow individuals to make e-commerce
transactions.
Consumer to Consumer to
Consumer Business
These are the
Online tools major payment
that allow services which
individuals to allow users to
complete make payments
financial via a mobile
transactions device.
with one
another Payment
s
Segment Consumers pay merchants
Payments between with credit cards through
consumers mobile devices.
Business to Business
These companies provide real-
time online payment processing.
Their digital payment networks
connect with financial
institutions to facilitate bank
transfers.

Making Automated Clearing

Source: Federal Reserve System House easier to use
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Blockchain Segment

The entire Bitcoin network relies on a Blockchain network

Blockchain
could be
used to
facilitate the
exchange of
financial
assets with Bitcoin is Blockchain is
less
middlemen. digital the
Several
currency, distributed Blockchain
companies
created and ledger are on the
rise, e.g.,
held technology
electronically. behind
Bitcoin.
Bitcoin and Blockchain could have vast impacts on the
Source: Federal Reserve System fintech industry. 13
Data and Technology Ecosystem Segment

The Technology Behind Fintech

• Apps, complete with
modified user
experiences, are being
Mobile rolled out for
consumers’ on-the-go
financial services
needs.

• Vast amounts of
consumer data
Big Data • How to interpret
and use it

• Programming code
allows two software
programs to
API communicate with
each other
• Bank transactional
data about
consumers 14
List of Companies in Key Fintech Segment

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