AN OVERVIEW: IMPACT OF FINTECH IN INDIAN BANKING SECTOR

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)

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.

12

   

Figure1.

NAASRating3.51

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

1.FintechInnovationIncubationProgram-Business.(2019,December2).SBI.RetrievedMay9,2022,from https://sbi.co.in/web/business/information/fintech-innovation-incubation-program

2.Goyal,J.(2019,September).EfficiencyandtechnologygapsinIndianbankingsector:

3.Applicationofmeta-frontierdirectionaldistancefunctionDEAapproach.TheJournalof

4.FinanceandDataScience,5(3),156-172.https://doi.org/10.1016/j.jfds.2018.08.002

5.Haralayya,B.(2021).CoreBankingTechnologyandItsTop6ImplementationChallenges.JournalofAdvanced ResearchinOperationalandMarketingManagement,4(1),25-27.https://orcid.org/0000-0003-3214-7261

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

6.Kaur,J.(2021).InnovationinIndianBankingSector.Parichay:MaharajaSurajmalInstitute

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11.Rathi,M.(2020,January).ImpactofDigitalTransformationonEmploymentinBankingSector.International JournaloScientific&Technologyresearch,9(1),4912-4916.https://www.researchgate.net/profile/RathiMeena/publication/339400031_IMPACT_OF

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14.Suseendra,G.(2019,October25).BankingandFinTech(FinancialTechnology)Embracedwith

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

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AN OVERVIEW: IMPACT OF FINTECH IN INDIAN BANKING SECTOR

Published on Dec 31, 2022

IASET Journals

The Indian Banking Sector is modifying their services from traditional banking to modern banking. Financial Technology is one such technology that has been accepted by banks to have that paradigm shift in them to provide their banking services to people more conveniently and fast. Banks are going in this direction as RBI is also promoting Fintech, innovation and entrepreneurship. Fintech provides financial services at a single place through the help of technology, which could be smartphone or computer in case of customers to have access to the services. In the study the services through technology in the banking sector provided will be seen. How technologies are transforming and shaping the scenario of Indian banking. After COVID 19 the need for developing e- services was a necessity as people were not allowed to go out of their homes and if anyone needed financial support the only way was to be done through e-banking.