Fintech

Fintech – financial technology, seeks to improve and automate the delivery and use
of financial service by utilizing specialized software and algorithms that are
used on computers and, increasingly, smartphones

the term was initially applied to technology employed at the back-end systems
of established financial institutions. Since then, however, there has been a
shift to more consumer-oriented services and therefore a more consumer-
oriented definition
financial literacy, advice and education, as well as streamlining of wealth
management, lending and borrowing, retail banking, fundraising, money
transfers/payments, investment management and more
Fintech also includes the development and use of crypto-currencies such
as bitcoin. In market capitalization
According to EY's 2017 Fintech Adoption Index, one-third of consumers utilize
at least two or more fintech services and those consumers are also
increasingly aware of fintech as a part of their daily lives.
Everything from a consumer’s ability to go online and see their financial transactions to
apps that track spending to tools that allow financial institutions to make quick lending
decisions are all part of the evolution of financial services. The ability for investors to do
their own research, choose stocks and see their portfolio performance in real time is also
an example of fintech in action.
In fact, it’s estimated that in 2018 alone, mobile point of sale transactions will top $5.4
billion worldwide
Credit Karma is an example of a fintech that’s providing a service (free credit reports) in
exchange for the ability to advertise loans and credit cards tailored to the specific needs
of its customers.
Envestnet | Yodlee has been at the forefront of the fintech evolution as one of the first
companies to provide data aggregation of financial accounts back in 1998. Since that
time, Envestnet | Yodlee has continued to be a leading innovator in this category
providing advanced Aggregation and Account Verification APIs. The company is also a
leader in the development of personal financial wellness and data analytics offerings.
Additionally, Envestnet | Yodlee has been running a fintech incubator program, working
with select start-ups from around the globe to help deliver the next generation of fintech
solutions using big data and predictive analytics.

Affirm seeks to cut credit card companies out of the online shopping process
by offering a way for consumers to secure immediate, short-term loans for
purchases. While rates can be high, Affirm claims to offer a way for
consumers with poor or no credit a way to both secure credit and also
build their credit histories. Similarly, Better Mortgage seeks to streamline the
home mortgage process (and obviate traditional mortgage brokers) with a
digital-only offering that can reward users with a verified pre-approval letter
within 24 hours or applying. GreenSky seeks to link home improvement
borrowers with banks by helping consumers avoid entrenched lenders and
save on interest by offering zero-interest promotional periods. For consumers
with no or poor credit, Tala offers consumers in the developing world
microloans by doing a deep data dig on their smartphones for their transaction
history and seemingly unrelated things, such as what mobile games they play.
Tala seeks to give such consumers better options than local banks,
unregulated lenders and other microfinance institutions.

A recent report from Accenture found that global investment in

fintech has skyrocketed from $930 million back in 2008 to over $12
billion by the beginning of 2015.
Crowdsourcing, for example, allows people with big ideas to get
funding quickly and easily from anywhere in the world from people
they have never met. Instead of months of investor talks,
entrepreneurs can – thanks to the shop-window that is the internet –
pitch directly to the world. Those with the magic touch can see the
funds roll in within a matter of weeks rather than months.
Fintech firms can pass on huge savings as they are far more agile
than traditional banks
At the Fintech for Inclusion Global Summit hosted by Accion, Quona
Capital and FMO, in the Hague last week, Peter van Mierlo, the CEO of the
Dutch development bank FMO didn’t mince words: “The financial sector
needs to be reinvented.” The Summit was attended by investors,
development finance institutions and leaders of companies around the
world that are doing just that – reinventing the financial sector – by
growing social enterprises that are using Fintech to open new markets and
serve new customers.
Mobile banking apps like Venmo and Zelle, robo-advisors and peer-to-peer
lending services, crowdfunding campaigns and cryptocurrencies – these are
all Fintech innovations.

 Cryptocurrency and digital cash

 Shiksha and paypal
 Blockchain technology, including Etherium, a distributed ledger
technology (DLT) that maintain records on a network of computers, but
has no central ledger.
 Smart contracts, which utilize computer programs (often utilizing the
blockchain) to automatically execute contracts between buyers and
sellers.
 Open banking, a concept that leans on the blockchain and posits that
third-parties should have access to bank data to build applications that
create a connected network of financial institutions and third-party
providers. An example is the all-in-one money management tool Mint.
 Insurtech, which seeks to use technology to simplify and streamline the
insurance industry.
 Regtech, which seeks to help financial service firms meet industry
compliance rules, especially those covering Anti-Money Laundering and
Know Your Customer protocols which fight fraud.
 Robo-advisors, such as Betterment, utilize algorithms to automate
investment advice to lower its cost and increase accessibility.
 Unbanked/underbanked, services that seek to serve disadvantaged or
low-income individuals who are ignored or underserved by traditional
banks or mainstream financial services companies.
 Cybersecurity, given the proliferation of cybercrime and the
decentralized storage of data, cybersecurity and fintech are intertwined.

Chtbots, AI , Machine -learning

Fintech startups received $17.4 billion in funding in 2016 and were on

pace to surpass that sum as of late 2017, according to CB Insights,
which counted 26 fintech unicorns globally valued at $83.8 billion. North
America produces most of the fintech startups, with Asia a relatively
close second.

Users:-

1) B2B for banks and 2) their business clients; and 3) B2C for small
businesses and 4) consumers
Ecommerce:-

Retailers can make use of bacon technology which is a refinement of the virtual reality.
This is similar to the concept of a warning system where upon reaching, the user will be
alerted through apps with alerts of discounts or detailed pick-up information, utilizing
Bluetooth Low Energy technology.

Augmented reality to touch feel object 3d images

With the introduction of GST in India, e-commerce players have better governance by
the government. The decrease in prices of warehousing and delivery, tax collected at
source and increased outreach will boost streamlining the service. The GST will create a
level playing ground for the industry giving a fair chance to all the retailers and also
uphold the business growth.

Walmart – flipkart 12 bn$ …raised flipkart value to 20bn

Investment from Microsoft,tencent,ebay

Morgan Stanley forecastingthat 30 percent annual growth in GMV will take

India’s e-commerce market to $200 billion by 2026.

Amazon 100m prime men=mber most In india

travel agents (“OTAs”), such as MakeMyTrip – which started turning these initial Web users
into Web consumers – have dominated Indian e-commerce 100 m users

payment gateway logistics,UI

About two-thirds of its online traffic of Flipkart comes from users in small cities and towns.
Flipkart’s app-only approach assumes larger significance in these places where most people
don’t own desktop computers and have limited access to broadband.

Google buy now button

50 million Indians will have access to the internet (as per latest figures released by market
research leader IMRB and the Internet and Mobile Association of India (IAMAI)). By the
same time, the population of active users would have reached 111 million.

online retail sales just represent 2% of the total retail spending in India6

When it comes to shopping for clothes & jewellery, Indian consumers like to touch and feel their
products before making a purchase.

Only discounts and offers

70% cod