FINTECHS: ISSUES AND CHALLENGES

Fintech is a combination of two words "financial" and "technology".

- Pankaj Dadhich

Any technology or app or software that provides a facility to people or businesses to access, manage, or gain insights into their finances digitally or carry out the financial transactions may be called as fintech.

With manifold increase in number of mobile users especially smart phones and availability of cost effective internet, fintechs have evolved very fast in last 10 years and has disrupted the entire financial services market through their tech driven innovative solutions. Fintechs also offer easier tracking, greater control, more options etc. On account of convenience, cost effectiveness, fast and ability to provide customized solutions the consumers have adopted it and started relying on these fintechs ranging from banking to investments and budgeting to funding.

Fuelled by investments and returns of existing fintechs, many players are entering into the market with the augmented features driven by artificial intelligence, machine learning and big data.

Two basic features are common in most of the fintechs which form foundation for any fintech company in delivering services to their consumers

Financial APIs: API (application program interfaces) connects consumers' bank accounts to fintech apps and services safely and securely for sharing financial data, transfer funds, and verify their identities. Through the use of financial APIs these apps provide facility to transfer funds anywhere without visiting any bank branch or even website of the bank.