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Fintech An Introduction

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33 views20 pages

Fintech An Introduction

Uploaded by

mayankggg09
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Fintech: An

Introduction
Traditional Financial
System
What is Fintech?
Fintech is generally described as an industry that uses technology to make
financial systems and the delivery of financial services more efficient (RBI,
2020).

It is "technologically enabled financial innovation that could result in new


business models, applications, processes or products with an associated
material effect on financial markets and institutions and the provision of
financial services“ (FSB, 2019).
Fintechs are "start-ups and other companies that use technologies to conduct
the fundamental functions provided by financial services, impacting how
consumers store, save, borrow, invest, move, pay, and protect money"
(McKinsey, 2016).
Fintech- few important points to note

→ For users, digital technologies enabled by the near-ubiquity of cell and smart
phones offer an opportunity to access faster, more affordable, more tailored, more
secure, and more convenient financial services.

→ For both incumbents and new fintech financial service providers, the costs of
offering customers digital products can be considerably lower than those using
physical infrastructures and relying mostly on paper- and human-based business
models. Fintech enables remote, contactless, and cashless transactions.
Fintech- few important points to note

→ Big tech companies have expanded into financial services by leveraging their large
platforms and troves of alternative customer data that can be analyzed for insight
through big data analytics.

→ Over the past decade, fintechs have attracted more than $500 billion in funding.

→ Since 2019, they have received roughly 20% of global venture capital outlays—
attracting large amounts of capital from generalist, technology private investors and
hedge funds—beyond the financial services specialists who had historically funded
these businesses.
Revenue multiple of the sector

Source: BCG QED Global Fintech Report 2023


Funding to the sector stage-wise

Source: BCG QED Global Fintech Report 2023


Strong Fundamentals

Source: BCG QED Global Fintech Report 2023


Customer Satisfaction

Source: BCG QED Global Fintech Report 2023


Large potential market

Source: BCG QED Global Fintech Report 2023


Potential for increased Digitization -2021

Source: BCG QED Global Fintech Report 2023


Types / Classification of Fintech
Top 10 global
fintech deals
in H1 2023
Top 10 Asia Pacific
fintech deals in H1
2023
Understanding the Fintech space
Understanding the Fintech Sector

Group no. Financial Service Questions


1 Payments- Domestic 1 and 2
2 Payments- Cross-border 1 and 2
3 Banking 1 and 2
4 Investment & Wealth Management 1 and 2
5 Insurance 1 and 2
6 Payments- Domestic 3 and 4
7 Payments- Cross-border 3 and 4
8 Banking 3 and 4
9 Investment & Wealth Management 3 and 4
10 Insurance 3 and 4
Questions to be addressed

1. How has this financial service changed over the last decade?

2. How are the traditional financial institutions responding to this change?

3. Highlight any two prominent fintech players within the financial service and their
business model in brief

4. What is the Indian scenario wrt this financial service (status and a few players)
Company Sector Company Sector

Paytm Payments Zeta Technologies Banking Products

PolicyBazaar Insurance BharatPe Payments

Billdesk B2B Payments Acko Insurance

Pine Labs PoS Payment Sol. Upstox Brokerage

Razorpay Payment Gateway Slice CreditCards / BNPL

PhonePe Payments Oxyzo Marketplace SME Lending

Digit Insurance Insurance CredAvenue Debt Marketplace

CRED Payments Open Financial Technologies Neobank


Groww Brokerage & MFs BillDesk Payments

CoinDCX Crypto Assets Coinswitch Crypto Assets

Indian Fintech Unicorns

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