A study on role of fin- tech in banking services: Opportunities and challenges

Abstract

Fin- tech is one of the fastest-growing areas for banking services. It is simply termed as financial technology in which computer programs and other technology is used to support banking as well as financial services. According to many studies Fin- tech Adoption Index, one-third of consumers utilizes at least two or more fin- tech services and those consumers are also increasingly aware of fin- tech as a part of their daily lives. Entry of Fin- Tech firms in the banking industry has compelled banks to look for new offerings by creating the best environment for innovation with the help of Fin- Techs, considering them as a partner rather than a competitor. Initially, the term was applied to technology which is applied to the back-end of established consumer and trade financial institutions. At the end of the first decade of the 21st century, the term has extended to incorporate any technological innovation in the financial sector, with innovations in financial literacy and education, retail banking, investment and even crypto-currencies. The objective of the study is to analyze the role played by fin- tech in banking services and the opportunities which are serving banking services and the challenges faced by banking sector. Descriptive type of research is used for the study. Secondary as well as primary data has been gathered for the study. The sources for the data are through the websites of the fin- tech companies and banks. The study briefly explains the role played by fin- tech in banks overall development. This helps banks to overcome the situations and sustain to the changes in the market. The study describes the opportunities for banking sector and clearly explains the problems faced by banking sector. The study analyzes the basic terms, objectives of research, assumptions and limitations.