FINTECH IN INDIA: EMERGENCE, GROWTH AND PATH AHEAD

Abstract [English]

Fintech is the newest buzzword in the financial industry. Financial institutions in the past have been transformed, thanks to fintech. FinTech is a phrase that is used to describe the expanding technological advancements in the financial industry. The wide range of Fintech services, including peer-to-peer lending, robo-advisors, wealth management, Insurtech, and blockchain-based solutions have completely transformed the financial sector. Along with improving accessibility, these services have raised the efficiency and openness of the financial sector. Indian fintech service sector is one of the fastest-growing one in the world. The shape of finance sector of India will change as a result of the growth fintech services. India has the potential to provide opportunities to the Fintech start-ups to grow as unicorn companies. Fintech in India is aiming at entering into new markets in India and outside India, as well. The historically cash-based economy of India has responded positively to the Fintech opportunities, primarily due to a spike in e-commerce and a high smartphone density. The present paper examines the significant transformations that Fintech has brought about in the traditional banking and financial industries, placing a special focus on financial inclusion, innovation, consumer satisfaction and economic growth. It also looks into the difficulties and risks of adopting fintech, such as worries about data security, legal compliance, client uptake, and the effect on conventional financial institutions. It also covers the function of AI and machine learning in Fintech innovation and how they might further transform the sector. In order to identify the difficulties and consider the prospects for Fintech in India, the present study adopts an exploratory method based on a thorough literature analysis. The study provides some recommendations for the policymakers, regulators, business stakeholders, and researchers to support the expansion and development of fintech in India.