Role of Fintech in Transforming Financial Services Sector in India: An Empirical Study of Benefits and Challenges

Abstract

Financial institutions are the intermediaries that connect those having surplus funds with those looking for the funds. In addition to this, the role of financial institutions is much more in making the transactions happen, such as banking institutions. The last few years have been revolutionary for the financial sector, wherein the methods of making payments and transactions have drastically changed. This period has witnessed the evolution of a new range of financial institutions, which the primarily tech-based organizations, hence known as FinTech companies or institutions. With the emergence of alternative payment methods, people have adopted the services of FinTech companies with excitement. The present study is descriptive in nature and discusses the benefits and challenges of FinTech and its role in transforming the financial sector in India. The study is based on the data collected from experts in the field of finance and technology. The sample size of the study is 140. Mean, and T-test was applied to analyze the data. The study concludes that India has a vast potential for start-ups to grow and flourish due to Fintech, which has India as an attractive market across the world. FinTech services have boosted the economy of the countries. It is also found that Fintech has played a significant role in the Transforming Financial Services Sector in India.