Indian Institute of Foreign Trade
Adapting to
The New Normal Fintech Innovation vs Data Security Laws
From the
Editor’s Desk Dear Readers, Welcome to yet another edition of InfiNeeti!
A collaboration of Capital, the Finance and Investments Club and Equity Research Cell; the Finance Society delivers the complex finance in an easy to understand way. The society provides a platform to discuss and present to its readers, the recent happenings in the world of finance. Finance Society hosts intracollege & inter-college competitions in the field of investment banking and equity research, which gives the students an opportunity to test their financial expertise and prepares them for the real world.
In this edition, we have tried to cover varied topics ranging from the effect of coronavirus on the economy and possible measures for revival of the market so affected to mergers of banks which has come to be prevalent in the last few years and whether the measure has actually brought about the desired effects. Apart from these we have also focused on the rising importance of fintech and the corresponding risks that it brings which brings about the need for laws to be established. It was humbling to receive so many responses from students from all walks of life.
Each article contributed more to our understanding of the topics and enriched us. We hope they enlighten you the readers too. Happy reading!
Foreword Readers, Greetings from InfiNeeti I am happy to present to you the first edition of InfiNeeti 2020. This edition has been placed before you at a very critical juncture. The Coronavirus has swept the globe, hitting people and businesses alike. The IMF predicts India’s GDP will see a 4.5% contraction for FY21, and it seems only a matter of time before we officially enter a recession. However, crises also bring opportunities – to invest intelligently and to innovate smartly so that we come out on top. At times like these, the headlining question appears to be only one – what measures can be taken to revive the market, what steps can the government take to boost the economy. However, we’ve also become guilty of focusing heavily on just one issue, while ignoring the myriad other problems that are part of our system – is merging banks a good idea or not, should taxpayer money be used to bail out failing banks, are we creating banks who are just too big to fail, what implications is FinTech innovation having on data security? Each edition of this magazine has helped raise the bar even higher and has been of great service to the student fraternity and has helped bring diverse viewpoints to the fore. This edition of InFINeeti is trying to analyze some of these questions and provide interesting insights. I hope you enjoy reading this edition. Wishing all students a glorious year ahead!
Dr. K Rangarajan Center Head IIFT Kolkata Prof. K. Rangarajan is an Accredited Management Teacher (AMT conferred by AIMA) and is a member of several professional bodies including AIMM (Australia). He is also amongst the Board Of Directors of The State Trading Corporation of India Limited (STC). His expertise includes Business Strategy and Strategic Planning.
The Team
Contents
Sr. No
Theme
Page
1
Fintech Innovations vs Data Security Laws
6
2
Governmental measures to uplift the economy given the slowdown coupled with aftermath of Covid-19
15
3
Is any bank too big to fail?
25
4
Is the government use of taxpayer money to bail out failing banks the solution to the problem?
30
Fintech Innovations vs Data Security Laws
Bhavya Shrivastava IIFT Kolkata
By the end of 2020, millennials will comprise of 50% of population •Increased adoption of mobile devices for banking and investment needs •Self-directed investment needs
Approximately 50% of the world’s population lives in urban areas. •Sharingeconomy • Rising need for personalized services
Global middle class is projected to increase by 180% over the next 20 years •Accessible investment guidance •Growing disposable income •Consumption of technology
Changed customer behaviours and expectations
Advent of new business models and start-ups Fig 1: Fintech Services
Fig 2: Global Megatrends affecting the landscape of financial services
2015
1502
2014
247
2013
24
2012
17
2011
31
Chart 1: Investments in VC-backed fintech companies (million USD)
Fig 3: Mapping main security issues and their technical solutions
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Fintech Innovation VS Data Security Laws
Harshit Kumar Vatsyayan IIFT Kolkata
Vishishtha Upal XLRI Jamshedpur
Angshuman Pal XLRI Jamshedpur
Governmental measures to uplift the economy given its slowdown coupled with the spread of the coronavirus
Aneri Shah IIM Bangalore Ananth Narayanan IIM Bangalore
รท
Measures for revival of markets from Covid-19’s aftermath
Sai Shashank Garimella IIFT Kolkata
Tanuku Tanmai Prateek IIFT Kolkata
Measures for Revival from COVID-19
Vivitsa Upasti XLRI Jamshedpur
Afreen Raunaq IGNOU
Kanika Tripathi IGNOU
Is any bank too big to fail?
Anshul Sharma Department of Financial Studies, DU
Radhika Kejriwal IMT Nagpur
Aishwarya Chaudhary IMT Nagpur
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Is the government use of taxpayer money to bailout failing banks the solution? Tanvi Sawant IIM Bangalore Yashika Mehta IIM Bangalore
Yes Bank Stock price 300 250 200 150 100 50 0
Stock price