KHECHARI MEDABOYINA

21BBA7040

Transforming the Banking sector into Fintech space.

- From the past several years, traditional banks have enjoyed a monopoly in the market.
Traditional banking is more of a regulatory and compliant body of their individual
countries, which is backed and shaped by ruling national governments.
The technological revolution in industrialized and emerging countries has progressed
at a gradual pace from internet banking to mobile banking and is now taking a new
direction to digital banking, which is the ongoing era. Fintech company, which I am
planning is actually a non-banking company, but as a technology-driven start-up. So
what exactly encapsulates the idea of Fintech (short for Financial Technology)
initiative?
In essence, FinTech encourages start-ups to develop novel services using digital
technology, including online banking, mobile payments and all-rounded financial
planning. It now includes various consumer-oriented applications. We can use this
technology to make investments in stocks and shares, oversee accounts, and pay for
our insurance and meals alike.
Coming to the banking sector, Fintech has revolutionised various services and
transformed the methods in which customers handle and maintain their financial
activities and endeavors. It has an influence on everything from digital money
transfer apps to insurance and trading firms.
Consumers have become less enthusiastic in engaging with traditional financial
applications and services in the present day of digitalization . Alternatively,
consumers now prefer speedy, efficient and secure services. This is exactly what
Fintech accomplishes with great ease.

Over 32 billion digitized payments worth over Rs 70 trillion were processed in India
in the year 2019. Digital purchases in India are anticipated to exceed ₹ 235 trillion by
the year 2025. Such large, positive statistics demonstrate the reason as to
how FinTech companies have made financial services more accessible and easier.
Numerous internet applications can now assist customers in calculating credit
loans and insurance premiums, etc, increasing their financial understanding.
Furthermore, a survey conducted by the Ministry of Electronics and Information
Technology revealed that it has experienced tremendous upward trends in
India's economic sphere. According to their report, the digital economy of our country
India adds 8%, which translates to 200 billion dollars, to the country's Gross Domestic
Product. As per the estimates, the digital market will generate approximately a
whopping 1 trillion dollars in economic terms for the country by the year 2025.
Worldwide investments in FinTech start-ups and initiatives have more than coupled to
a boggling $110 billion, up from $50 billion of the previous years. This is more than
the required proof for establishing that this sector is on the verge of a digital
revolution. There are around 1.8 billion individuals operating daily life without a bank
account in the world as of now. FinTech is a lifesaver for all of these folks, allowing
them to engage in and access monetary transactions without the requirement for bank
accounts. FinTech is the optimal choice for achieving financial inclusion since it was
 created to equip customers clear-cut control of their account with the use of
convenient yet state-of-the-art technology. By the first half of 2021, India's fintech
start-up system experienced a 5.5x increase in terms of capital inflow, reaching over
4.5 billion dollars across 160 acquisitions.
Fintech has evolved from entering as the new and skeptical entity on the world
platform to becoming the standard in the services of the financial sectors during the
last 10-15 years. The barriers between digitalization, technology and transaction and
monetary businesses are becoming increasingly blurred, and both start-up companies
and conventional banks have identified and accepted the value of tech innovation and
are employing it to develop incredible and original services and products for their
clients and customers. Having grasped the profound potential and incredible impact
Fintech possesses, I have come up with the ideas of action of incorporating Fintech
services. I believe these will set our start-up apart from the rest of the herd.

I would be planning around “Consumer and Commercial lending space” and

“Payments space” and based on scalability, it would be around “Commercial real
estate space” (by targeting HNI’s in India)

- Consumer and Commercial lending space (sub-verticals)

o Using the state-of-the art AI, ML and Deep Learning technologies to cut down
the time of approving a loan (if applicant is eligible).
o Eligibility would also be notified within minutes by scrutinizing and verifying
the documents using OCR and Image processing techniques.
o Generating further revenue by Peer-to-Peer lending (connecting the lenders to
borrowers and vice-versa), through fees and charges, from all the parties of
interest without any investment of funds by approval from regulators to enable
security in the transactions.

- Payments space (sub-verticals)

o Today, with the advancement of mobile gadgets, payments through digital

channels have disrupted the older mode of payment streams.
o Using advanced integration capabilities, allowing the customers to directly
partner with the merchant vendor by removing the third-party channels to the
eliminate the costs to the customer and providing them better customer
experience. (I'd earn revenue in this sector by introducing an e-wallet and
charging a merchant, a percentage of the revenue he generates from
transactions.)
o To develop a blockchain-based decentralized payment platform with high
security and minimal regulations.
- Commercial Real Estate (sub-verticals)

o India has been rapidly developing in the emerging tech and it has been
attracting many FII ‘s to push their investments into India, which is helping IT
industry to emerge new start-ups every year.
o These start-ups are in the need of workspaces—a need for co-working space,
which can be monetized -to create an investment option and attract HNI’s to
invest in it.
o Similarly, younger people below 28 years of age are the ones, who are being
hired by start-ups and also well established MNCs in India—a need for living
spaces has come out, which can again be monetized -to create an investment
option and attract HNI’s to invest into it.
o Multiple revenue models like (revenue sharing and profit-sharing) and others
can be used to build a brand and attract more investors, which will increase the
revenue of the firm, thus rising the Net Profit. This monetization can help in
minimizing the debts to grow the business.

The bottom line being, no consumer or client has the luxury of affording the choice of
waiting for days for even the simplest of operations to be completed. FinTech is critical
for the finance and banking industries' digital transformation. FinTech firms like ours
will contribute to the development of consumer-indulging banking services that will
transform the banking and financial companies' primary activities. For our valued
clients, transactions will be quicker, easier, and much more reliable than ever before.
India's fintech field is not only a fast-growing and emerging area of our economy, but it
is also the current apple of the global eye! I strongly believe that coupling these great
performance expectations with innovative plans of action can bring our start up
initiative closer to greatness and prosperity.