Financial Technology Revolution in India: An Appraisal

Abstract

Role of artificial intelligence has increased tremendously in the field of finance. Traditional banking and financial players are challenged by technological start-ups with the help of services like international money transfer, online portfolio management, crowd funding platforms, and mobile payment solutions. To promote digital financial services in India main foundation stones are Unified Payment Interface (UPI), JAM trinity i.e. JAN-Dhan, Adhar and Mobile. So, to study FinTech revolution in Indian context this research article has been planned. Further, this paper has been divided into three parts to achieve two objectives. First objective is to study the evolution of FinTech worldwide, and its relationship with data science and artificial intelligence. Secondly, to analyse FinTech revolution, trends, problems and prospects in Indian Context. A descriptive research approach is adopted to examine FinTech Industry status in India. Various sources like research articles, papers, government reports, and websites have been considered to gather various data for this work. Further, chart and table has been used to explain data. For more precise explanation, a comparison has also been done with global trends. The study revealed some of the gap areas in Financial Inclusion in financially underserved India and these are low insurance penetration, lack of strong telecom network, lack of access to formal credit, lack of collateral for loans, building a cashless economy, low financial literacy, lack of acceptable identification, high brokerage cost and low penetration. Finally, the research article also highlighted the regulatory framework for FinTech industry in India.