Fintech Applications in Banking and Financial Services Industry in India

Abstract

Financial Technologies have transformed banking and financial services operations worldwide over the last decade. It has simplified the customer's and banking authorities' lives significantly. The paper reviews briefly the most commonly used financial technologies (Fintech) – Artificial Intelligence, Machine Learning, Blockchain, Big Data and its applications in Banking and Financial services industry (BFSI). Fintech applications such as - Fraud detection and prevention, Portfolio management (Robo-advisors), Loan underwriting, Robotic Process Automation (RPA), Digital Payments, Insuretech and Regtech etc. have been explored in the paper in the context of BFSI. It also studies the impact, opportunities and challenges of financial technologies for BFSI. Further, the paper studies udy the experiences of leading Indian Banks and Financial Services organizations in respect of adoption of financial technologies. The study presents the experiences of Fintech adaptations by three leading Indian Banks – ICICI, HDFC and SBI. The study highlights that the revolution Fintech set in motion has had a profound impact on traditional banking and financial service sectors in terms of operations. Originally used for backend services, it is currently applied in many additional applications such as online payments, mobile payments, fund management, and stock trading. The study concludes that Fintech has changed the financial ecosystem and transformed the basic process of payment methods via the use of digital technology.