A Study of Influence of Financial Technology On Banking  Sector in India

Authors: Thaseen Sultana, Research Scholar, CMR University, City Campus, HRBR layout, Bengaluru, Karnataka

Abstract: Innovation and Technology have guided a radical change in traditional financial services. Now, Technology seems an essential key for the growth of the digital economy. Over the year‟s Indian banks and financial service providers have cautiously adopted technology to augment reach to the customers, provide services to and operational efficiency with growing market and technological advances. But still, the momentum of technology adoption is not equivalent to its potential. Accordingly, there are gaps in the realization of financial services.Traditional Banks and Financial Institutions have noticed technology as a potential to empower the business propositions, rather than originating new business propositions themselves. Financial Technology (FinTech) Companies however are modifying that role by gratifying digital technologies to establish new business propositions and target new market segments which precedently were not possible. Even, RBI is enabling the development of the fintech sector to multiply the reach of banking services for the unbanked population. FinTech is the legitimate aim in the utilization of technology to offer new financial products and services to new market segments in an economically feasible manner. From a business model perspective, the FinTech sector is manifested by technology companies that either attempt to disintermediate, or partner with incumbent Banks and Financial Institutions confide in on strategic account and market landscape. Hence, FinTech is progressively becoming a foremost center of attraction 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. So, the impetus of this paper is to confer about various facets of Fintech in India.

Keywords: Technology, Financial, Economy, Digital, Services, Initiatives

DOI: 10.5281/zenodo.8325955

African Journal of Accounting, Auditing and Finance, 2023 Vol.9 No.1, pp: 44 - 47

Received: 10 Nov 2022

Accepted: 18 Mar 2023

Published online: 12 June 2023