AN OVERVIEW: IMPACT OF FINTECH IN INDIAN BANKING SECTOR

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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.

www.iaset.us

editor@iaset.us

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.

12 AnkitaKujur&Dr.ShreeBhagwat ImpactFactor(JCC):7.4543 NAASRating3.51
Figure1.
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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.

REFERENCES

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AnOverview:ImpactofFintechinIndianBankingSector 13 www.iaset.us editor@iaset.us

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14 AnkitaKujur&Dr.ShreeBhagwat ImpactFactor(JCC):7.4543 NAASRating3.51

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