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FinTech: The Combination of Finance & Technology

The word ‘FinTech’ is the combination of finance and technology, technology providing financial services by making use of software and modern technology. FinTech providers are offering virtually every product category in retail banking, from payments, to wealth management, to lending. The phenomenon has been named as ‘disruption’ of financial system.

Digital revolution has arrived in the financial services sector, it is clear that FinTech is an opportunity for industry incumbents which will establish financial services players to take bold steps to engage with emerging innovations. Though FinTech was materialize initially to serve the unbanked population specially in remote area but now a days it is an integral part and increasing tremendously for any micro finance services offered to anyone. Meanwhile FinTech boom is driving radical changes in telcos and larger retail chains with astonishing growth in their own versions of banking and payment, using things like e-Wallets. In coming days FinTech will be the only way to reach the customer easy, cheap and transparently with any micro finance services.

Scope –

• Collection of measures to improve human capital;

• Support sustainable economic development in a participatory manner;

• Minimize the vulnerability of low-income people with basic consumption and services;

• Allow people to shift income efficiently over the life-cycle,

• Financing consumption when needed;

• Reduces dependency on manual process;

• Protect or save the natural resources by green initiative;

• Fostering finance and banking learning, creativity and innovation.

Features –

• Can create databases of beneficiaries KYC.

• Appropriate, well designed and Managed Payment System

• Facilitate financial transaction through different delivery channels

• Account Opening Services

• Beneficiary data can be uploaded

• Real time account management

• Transaction profile & Limit control

• Cash deposit and cash withdraw by the beneficiary

• Centralized administration

• Flexible Search Engine

• Allocation of social allowances to proper beneficiary

• Key Data Analysis

• Advantages of Conditional Cash Transfer Programs

• Determine an accurate estimation of clients’ benefits

• Mobile Apps for Beneficiary

• Reduces dependency on manual process

• Less man-hours required

• Paper less payment system

• Audit trial on all transaction

• Each operation is mapped with NID

Benefits –

Financial literacy- Beneficiary of FinTech are mainly diffident people using this latest technology based services will be benefited by knowhow and literacy.

Technical learning- People fee shy to use new technology themselves initially but FinTech teach them bi-lateral way, so people who are recipient will be technically educated invariable.

Behavior analysis- Being the transactions through FinTech is fully automated every history of the transaction remain in the system which can analyze the personal, financial and social behavior.

Financial analysis- Type of transaction, trend of repayment, volum of transaction, size of transaction, loan and lending history, frequency of payment and finally graduating in financial position being recorded may be used for financial analysis by any related party.

Cost control- Using the analysis different type of cost like personal, transactional cost etc., might be minimized.

Forecasting- Now a days it is possible to forecast the revenue, expenditure and other related calculation using FinTech.

Online lending- FinTech has facilitated the capability assessment for lending and taking online loan from banks and other institutions.

Remittance- Local and international remittance services, fund transfer, account transfer is available at the doorstep through FinTech.

Utilities bill payment- It was more challenging to collect bills and make payment now it has become easier, secured, transparent and cheaper.

Reduces dependency on manual process, minimize man-hours required and Mitigates risk Paper less payment system, Changing accountability relationships.

Technology uses in FinTech – Personal computer, laptop, Tab, Mobile phone is used to end point to deliver services. Following security is use to secure the beneficiaries payment.

• Bio-metric enrollment and authentication

• Face enrollment and recognition

• One time password (OTP)

• SMS notification

• Near Field Communication (NFC)


(A) Social: Deprived groups are becoming familiar with the use of modern technologies Getting social security through empowerment Ensuring protection, supervision and advancement Providing free-of-charge different basic financial services for the mass people.

(B) Institutional : Bringing mass people under Institutional umbrella with the collaboration of local different agencies Offering best financial services under financial inclusion Fostering banking learning, creativity and innovation.

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