“India is on the way to becoming Asia’s top Financial Technology (FinTech) hub with 87 per cent FinTech adoption rate as against the global average of 64 per cent. The Reserve Bank is intensively involved in developing an ecosystem, which would not only nurture the future technologies, but also stimulate the technological aspirations of the financial community.”
Financial Technology is used to describe new technology that seeks to improve and automate the delivery and use of financial services. FinTech is utilized to help companies, business owners, and consumers better manage their financial operations, processes, and lives. It is composed of specialized software and algorithms that are used on computers and smart phones. FinTech is a shortened combination of “Financial Technology.”
Incorporation of technological innovations while provisioning and designing financial services has significantly altered the dynamics of financial sector. While the exact scope of activities under FinTech will keep evolving with emerging use cases. What will remain constant is the increasing embrace of technology by the financial sector. To keep pace with the dynamically changing landscape, Reserve Bank has been making conscious efforts to facilitate innovation in FinTech sector, for attaining the larger public good.
When FinTech emerged in the 21st century, the term was initially applied to the technology employed at the backend systems of established financial institutions. FinTech now includes different sectors and industries such as education, retail banking, fundraising and nonprofit, and investment management, to name a few.
New Technologies, such as machine learning/artificial intelligence (AI), predictive behavioral analytics, and data-driven marketing, will take the guesswork and habit out of financial decisions. FinTech is also a keen adapter of automated customer service technology, utilizing chat bots and AI interfaces to assist customers with basic tasks and keep down staffing costs.
FinTech refers to the integration of technology into offerings by financial services companies to improve their use and delivery to consumers. It primarily works by unbundling offerings by such firms and creating new markets for them. Companies in the finance industry that use FinTech have expanded financial inclusion and use technology to cut down on operational costs.
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