InternationalJournalofBusinessandGeneral Management(IJBGM)
ISSN(P):2319–2267;ISSN(E):2319–2275
Vol.11,Issue2,Jul–Dec2022;11–14 ©IASET
ANOVERVIEW:IMPACTOFFINTECHININDIANBANKINGSECTOR
AnkitaKujur1&Dr.ShreeBhagwat2
1ResearchScholar,DepartmentofBusinessManagement,Dr.HarisinghGourVishwavidyalaya(ACentralUniversity), SagarMadhyaPradesh,India
2HeadoftheDepartment,DepartmentofBusinessManagement,Dr.HarisinghGourVishwavidyalaya (ACentralUniversity),Sagar(MadhyaPradesh,India
ABSTRACT
TheIndianBankingSectorismodifyingtheirservicesfromtraditionalbankingtomodernbanking.FinancialTechnology isonesuchtechnologythathasbeenacceptedbybankstohavethatparadigmshiftinthemtoprovidetheirbanking servicestopeoplemoreconvenientlyandfast.BanksaregoinginthisdirectionasRBIisalsopromotingFintech, innovationandentrepreneurship.Fintechprovidesfinancialservicesatasingleplacethroughthehelpoftechnology, whichcouldbesmartphoneorcomputerincaseofcustomerstohaveaccesstotheservices.Inthestudytheservices throughtechnologyinthebankingsectorprovidedwillbeseen.Howtechnologiesaretransformingandshapingthe scenarioofIndianbanking.AfterCOVID19theneedfordevelopinge-serviceswasanecessityaspeoplewerenot allowedtogooutoftheirhomesandifanyoneneededfinancialsupporttheonlywaywastobedonethroughe-banking.
KEYWORDS:Fintech,Banking,India,FinancialServices,Innovation,PaymentandTransaction ArticleHistory
Received:27Jul2022|Revised:28Jul2022|Accepted:30Jul2022
INTRODUCTION
Technologyinbankingisnotbrandnew,theyhavebeenusingtechnologyinaspectslikeATM,computers,POSmachines, etc.Nowbanksarealsomovingforwardastechnologyisgettingbetterviasmartphones,artificialintelligence,etc.They havecometoaplacewherenowfinancialtransactionsandbankingfacilitiesarenotlimitedtophysicallyvisitingbank branches;instead,mostofthefacilitiesareprovidedonthetipofthefingerthroughthelatesttechnology.Bythedigital servicesnowbankisavailable24*7topeople.Itcanbeaccessedatanytimeandanywhere.Bankinghaschangedand modifieditswaysofprovidingtheirdaytodayservices,thisdirectlyaffectstheworkforceofbanks.
Inthestudythefocusisuponbothpublicsectorbanksandprivatesectorbanks,onhowfintechhascausedthem todeveloptheirservicesaspertoday’s’need.Traditionalbanksandfinancialserviceshavesteppedontheinnovationtrack duetofintechwhichwillbeenlightenedthroughreviewingliteratureandarticlesprovidedbyvariousresearchersand existinginformation.
REVIEWOFLITERATURE
ThesereviewsofliteraturearedoneondifferentresearcherswhohaveworkedontheareaoftechnologyintheIndian BankingSector.
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blockchainforbanksenablestradefinance,security,compliance,customerservicesand intheresearchinnovationhasbeen studyshowswithincreaseduseoftechnologyintheIndianbankingsector, therequirementsofITprofessionals.SuseendranG.(2019)
banksaregettingmoreandmoreautomatedwhichmighteliminatedependencyonphysicalstaff.Thiswouldleantowards
GargPoonam(2021)blockchainforbanksenablestradefinance,security,compliance,customerservicesand costofoperations.Studyprovidesinformationonblockchaintechnologybenefitstothebankingsector.GoyalJatin (2019)researchshowstheIndianbankingsectorwas73.44%efficientin2015-16.Consolidationbringspositivesynergyin effectivelevelsofindustrythroughloweringNPAlevels.KaurJatinder(2020)intheresearchinnovationhasbeen overviewedwherethecauseofmajordevelopmentintheIndianBankingIndustryisPrivateSectorBanks.E-banking,core banking,corporatebanking,investmentbanking,ruralbanking,NRIbankingandretailbankingareinnovativebanking. (Kaur,2020)Ms.M.RathiMeena(2020)studyshowswithincreaseduseoftechnologyintheIndianbankingsector, banksaregettingmoreandmoreautomatedwhichmighteliminatedependencyonphysicalstaff.Thiswouldleantowards therequirementsofITprofessionals.SuseendranG.(2019)outcomeoftheresearchisthatfintechandinternetofthings (IoT)togetherareofferingnewinnovationsbasedontherequirementofthings.Withthesetwobankswouldbloomforthe newgeneration.
Fintech(FinancialTechnology)
Fintech(FinancialTechnology)
Fintechcanbesimplyexplainedasthecombinationoftwowordsthatisfinancialservicesanddigitaltechnology.Fintech isbecomingknowntotheworldwhichisrapidlygrowingintermsoftechnologieswhichassistfinancialservices.Itcanbe saidthatfintechiswhenanyorganizationorbusinesssolicitstoenhancetheperformance,deliveryandprovisionof financialservices.Fintechcoversareaslike:
isbecomingknowntotheworldwhichisrapidlygrowingintermsoftechnologieswhichassistfinancialservices.Itcanbe
Deposit,creditandcapital-raisingservices
Paymentservicesincludeddigitally
Investmentmanagementservices
insurance
FintechmajorstartupswereinFebruary2020andsomeofthetopIndianfintechstartupsareasfollowing:
FinancialTechnologyinIndianBankingSector
Fintechinbankinghasinfluencedalargenumberofapplicationsandrestructuredthewaycustomersusetheirfinances. Bankingistheoneoftheback-boneforfintechbecausefortheexecutionofseveralservicestobeprovidedbyfintechit needsbankssothatfinancialservicescanbeavaileddigitally.Atpresent,customersarelesswillingtogofortheservices providedintraditionalwaysofbankingorfinancialservices.
providedintraditionalwaysofbankingorfinancialservices.
Presentlyapprox.1.7billionpeoplearoundtheworldareaccessingfintechwithouthavingbankaccounts.Fintech helpsthesepeoplethroughprovidingeasyoptionsforparticipationandaccessingfinancialserviceswithouthavingbank accounts.
Servicesprovidedthroughfintechthatischangingfinancialindustriesare:
SmartChipTechnology:therearesmartchipsinATMcardswhichhaveremarkablyminimizedthefinancial lossesoccurredincaseofmishaps.
BiometricSensors:biometricsensorsandirisscannersarethetechnologyadvancementthatATMshavewhich removestheneedtocarryphysicalcardsandtoalwaysrememberyourpin.
OnlineTransaction:AutomatedClearingHouseprovidese-bankingande-interbankingpaymentforinsurance premiums,salary,socialsecurity,dividendpayments,billpayments,directdebitsofmortgage,etc.
Bankingwithoutbranch:fintechhasmovedbankingtowardsdigitalmodethroughinternetandsmartphones whicheliminatedtheneedforbrick-to-brickbranches.
Chatbots:theyareproductivetocustomerinteractionsforhandinganyqueryandleadingcustomersto appropriatedepartments.
ArtificialIntelligence(AI):AIisavitalpartoffintechbankingservices.AIwithitsmachinelearningisalso usefulatfrauddetection.
E-Wallets:PayPal,ApplePayandPaytmareafewexamplesofe-walletwhichuseP2Ppayments,top-up, booking,etc.
MobileBanking:asmoreandmoresmartphoneusersareincreasing;ithasgivenbankstheopportunitytomake mobileapplicationsthatprovidefintechbankingservicesatanytimeandanywhere.
CONCLUSION
Asthetechnologygrowsrapidlywiththeparalleldemandsofcustomersforconvenientanduser-friendlybanking experiencehasinfluencedfinancialservicesandbankstoadoptfinancialtechnology.
Fintechisconstantlygettingtheirwayupsoitcanbesaidthattheywouldalsosteponmoreareastoperform bettersuchaswithsoftwareforretailbanking,financialinstitutionsandmanymore.
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