Emerging Opportunities and Challenges in FinTech Industry – A Comparative Study of India With Other Jurisdictions

The evolution of new technologies like cloud computing, artificial intelligence and block chain has led to phenomenal growth of the FinTech Industry. The digital-only banking also known as neo, virtual or challenger banks leverage these technologies with the ultimate aim of enhancing the reach of the formal banking sector to the hinterlands of our country which are currently plagued with the problem of inadequate infrastructure. It is evident that convergence of the neo-bank with the traditional banking system would be a path-breaker as it caters to the gamut of services which can be offered to the end customer. Recent trends indicate that regulators are concentrating on consolidating different enactments in the form of codes instead of separate and piecemeal laws to control regulatory cholesterol and promoting digital technologies, thereby nurturing competitiveness in the market. Through this chapter we aim to do a comparative analysis of the technological advancements and its implementation in India with other jurisdictions. We will be relying on secondary data sourced from various governmental websites, surveys and journals. With the FinTech industry gaining traction and decentralization of this sector, it becomes imperative to have proper regulations to curb unwarranted risks, the absence of which might just halt the potential growth and can turn out to be a nightmare for the economy if not dealt with caution. There exists unexploited potential in the digital sector which can also be used across the borders to realize its true worth. However, it should be based on responsible innovation which attends to the interoperability issues while preserving the functioning and stability of the financial system.