Question

Analyse how FinTech has evolved over the years and what are the scope of FinTech for the Banking and Financial services and explain how technological advancements mainly Internet of Things (IoT) has redefined the FinTech industry.

(25 Marks)

Answer 1

Financial Technology or FinTech means the technology enabled financial solutions.There is a interlinkage of technology and finance which has evolved over a period of time.The evolution of FinTech evolved several era of FinTech 1.0 where Infrastructure is evolved i.e financial globalization which involves transmission of information across the border using transatlantic cable and fedwire.Fintech 2.0 in this era there is shift from analog to digital.Launching of ATM,calculator,digital stock exchange due to which how fnancial market operate today.In FinTech 3.0 leads to formation of new options along with banks because of financial crisis in 2008 and lost of confidence therein.Access of internet using smartphones,various wallet mode for transactions and evolvement of crypto currency.There are formation of several FinTech startup and bank and financial institutions are making tie up with such startup for making use of the technology made by them.One of the software core banking system used by bank nowadays connect each and every branch of bank with each other using internet and FinTech software which ease the way of operation by bank.