FinTech is the new applications, processes, products, or business models in the

financial services industry, composed of one or more complementary financial

services and provided as an end-to-end process via the Internet.
HISTORY OF FINTECH
 HISTORY
• The history of Financial Innovation goes as far back as the
1860’s, when a device known as the pantelegraph was
invented.
• It is used to verify signatures in banking transactions by
sending and receiving transmissions on telegraph cables.
• In 1880’s consumers exchange their goods and services for
credit using charge coins and charge plates.
• In 1966, the telegraph was replaced by telex network for long
distance communication.
• First ATM was installed by Barclays Bank in the North London.
 HISTORY CONTD..
• In 1971, the establishment of the National
Association of Securities Dealers Automated
Quotations (NASDAQ) transformed Fintech.
• 1980’s evolution of E-Trade and Online
Banking began.
• In 2009, the Cryptocurrency, Bitcoin was
released.
• In 2011, LuFax, an online Internet finance
market place is created.
 SCOPE OF FINTECH
• Fintech service firms are currently redefining the way
companies and consumers conduct transactions on a
daily basis.
• The global investments into fintech ventures have been
increasing at record speed – tripling from $4 to $12
billion.
• In India, the scale has been much smaller but at similar
growth rates.
• Investment in India’s Fintech industry grew 282 percent
between 2013 and 2014.
• The scope of FinTech is enormous not in size or growth of
this particular industry but also impacts other industries.
• FinTech is all about improving the currently existent
financial services by using some form of technology.
• The scope of fintech includes the following
large spheres:
• 1. Blockchain and Cryptocurrency
• 2. Open banking
• 3. Insurtech
• 4. Regtech
• 5. Inclusive fintech
• 6. Cybersecurity.
• 7. Robo-advisors.
 ADVANTAGES
• Banks are getting Digitalized.
• Better Customer Service - Fintech can speed
service and bolster security,
• Real-Time Data Collection - The ability to
remotely evaluate insured property is especially
useful to companies and clients
• Easier Payments through smartphones, cards, or
other RFID or NFC-equipped devices.
• Effective Interaction - Interaction between IoT
sensors, apps, and customers could be tailored to
encourage better money management habits.
 DISADVANTAGES
• Lack of Security – Data that is available online can
easily be stolen by third parties or Hackers.
• Complex Networks - The larger the network, the
more difficult it is to maintain & Maintenance is
tricky.
• Only applies to large companies - Effectively large
companies started using the FinTech.
• Enormous operating cost stemming from multi-
layered managements structures and large offices
in prime locations.