Fintech: A Revolution

6 min readDec 28, 2022

The term “FinTech”, which is currently popular all around the world, is in use. You’ve come to the proper place if you’re looking for the definition of this word precisely.

Let’s find out what “FinTech” means.

FinTech is an acronym for “Financial Technology.” FinTech refers to technology that enhance and automate the provision of financial services. And a “FinTech Company” is a business that employs this technology to connect with its numerous clients digitally and offer them a quick, simple, and secure means of doing transactions.

For example, we used to stand-in long queues and wait for our count on deposit money in the account, check the account balance, etc., but today all this is attainable in seconds. Well Thanks to FinTech.

There are many apps that make these belongings very easy, fast and secure. Apps like Paytm, Google Pay, PhonePe, BharatPe, BHIM preserve our time. You can transfer money to someone’s account accompanying a few clicks, you can check your account balance, you can directly pay your bills, book travel tickets, book movie tickets and today loans are too available.

Evolution of Fintech

After the worldwide financial crisis of 2008, nevertheless, FinTech has evolved to disrupt and reshape retailing, payments, investment, asset management, insurance, clearance and settlement of securities and even money itself accompanying cryptocurrencies such as Bitcoin.

In 1866, the first transatlantic cable was successfully laid, providing infrastructure for financial globalization.
In February 1950, the Diners Club issued the first “General Purpose Credit Card” invented by Frank X. McNamara.
On June 27, 1967 Barclays in Enfield became home to the world’s first cash machine. On 30 June 1975, a more sophisticated Auto Teller Machine(ATM), called Barclay Bank was launched.
In 1971, NASDAQ(National Association of Securities Dealers Automated Quotations) invented electronic trading of securities and the IPO, giving growth companies the opportunity to raise capital from public markets.
In 1981, Michel Bloomberg, created Innovative Market Solutions(IMS) to provide real-time market data, financial calculations and other financial analytics to Wall Street Firms. The company was renamed Bloomberg L.P. in 1986.
In 1982, William Porter, created Trade Plus, which kickstarted the online brokerage investment revolution and quickly started driving down the cost of online trading. The company was recognized as E*Trade Group in 1994.
Apiece beginning of 21st Century internal processes of banks, interaction with outsiders and retail custo mers has become sufficiently digitized and then happened Global Financial Crisis in 2008.
After Global Financial Crisis of 2008 community begun distrusting Traditional Banking Systems, and this performed a very main function in the Evolution of FinTech Startups. In 2009, Bitcoin v0.1 announced and it made a tremendous impacton Financial World and suddenly a boom came of various Cryptocurrencies but in 2018 there took place a great crypto crash.
And another main factor in forming the fintech into a disruptive technology was the introduction of smartphones. People begun using WWW and can use different financial services. And in 2011 Google introduced Google Wallet followed by Apple Pay in 2014.
From 2014–2017, west begun dominating financial world and studied the growth in digital investment all around the sphere. The main thing they were focusing the WWW usage of consumers, how they use the Internet. In China and India, markets didn’t have time to focus on Physical Banking Infrastructure and immediately they were open to new solutions more quickly.

FinTech Today

Blockchain Technologies and open investment are continuosly playing a very important part in developing FinTech.

On other side, Machine Learning also revamping the way population interacts with banks and insurance companies. Another major determinant is Integrated Payment Providers, they are offering payments as an adding to an already inclusive business management arrangement. Fintech startups have taken funding from banks and frequently rely on banking, protection to deliver their gist products. Banks have also acquired fintech startups or invested in them to improve their existing operations and contributions.

Key Driver of Fintech Benefits

Fintech is shaping financial services from the outside in.
Fintech is driving the future of financial services and increasing customer satisfaction.

For the Regulator — Its REGTECH

The term RegTech refers to a set of companies and solutions that marry innovative technology and regulation to address regulatory requirements across industries, including financial services.

Role of Cryptocurrencies in FinTech

In past few age Cryptocurrencies had a big impact on financial world. But as I mentioned above there was great crypto crash and before expected time they are looking stablizing. The trends that have arose, as cryptocurrency gains more traction engaged of global business, are constituting new challenges and opportunities for financial area players. The arising financial landscape has established room for smaller trades to grow on the back of , while best financial organizations are starting to see the profit in the speed and security offered for one distributed account book systems pioneered by digital currencies.

Fintech in India

According to a report, India’s fintech industry valuation is estimated at $150–160 billion by 2025 and is currently the second highest funded industry in the country.

Currently there are more than 2100 startups that formed a fintech industry in India and 67% of those startups were formed in the last 5 years that means even pandemic hasn’t been able to stop this industry to grow exponentially.

Biggest Fintech Startups in India.

Paytm
Razorpay
Upstox
CRED
ETMONEY
Instamojo
Pinelabs
PayU
BharatPe

Big Giants started their own payment system

OLAPay
Amazon Pay
Google Pay
Apple Pay

Key Market Trends of Fintech Industry in India

Increase in mobile banking- The main in the boom of Mobile Banking in India was the Demonatization.
Deals in Indian Fintech Startups- According to PwC report, With $4.6 billion, India’s FinTechs raised 3X more funds in 2021, three-times more in the first three quarters of calendar year 2021, compared with the whole of 2020. InsurTech, WealthTech, Neobanks and financial technology enablers also witnessed a renewed interest.

Challenges in Fintech Industry

Well every industry have challenges and this industry is in it’s development phase. According to me these are the main challenges in fintech industry.

Peer-to-Peer Landing or Online Loan Grow — If banks are giving you loans it means there is something with your credit industry, and if peer-to-peer landing is happening through an application without any financial institution like banks then it might be possible the person who who took the loan might not return or lender can put high interest rate on the consumer.
Abundance of data — There is so much data in fintech industry like how we are spending our money, which industry is getting most out of it means there is so much of consumer data and that comes out with challenges for data security in fintech industry.

There are startups growing in data security field as well because the more fintech industry grows it will have more threats on data security in fintech industry. But apart from all of this FinTech is growing with a very high speed, it is a revolution in Financial World and the growing number of unicorns(privately held startup trades with a value over $1 Billion) is an sign of this.