Fintechs Reshaping the Financial Ecology: The Growing Trends and Regulatory Framework

Abstract

The concept of financial ecology encompasses the intricate interplay of financial systems, institutions, and technologies within the economic ecosystem. It emphasizes the symbiotic relationships and dependencies that shape the modern financial world. Development of Fintech has the potential to significantly enhance and reshape the dynamics of the financial ecology, introducing new players and altering established relationships within the ecosystem. In today’s digital realm, the financial landscape has gained significant steam in its adoption of technology tools to dispense its services. The ‘internet economy’ is relied upon to produce new market development opportunities and occupations and become the greatest business opportunity for organisations in the future. India has come up significantly in the global discussion on financial technologies over the last two decades. Through a systematic review of the literature on this area, this article identifies that the regulatory framework requires provisions to support greater fintech inclusion. Moreover, several issues still lie deficiently addressed, such as user privacy and cybersecurity. This article attempts to review the opportunities, scope and risks for the implementation of financial innovation in India.