Page 27 - Banking Finance December 2022

ARTICLE

As of now, countries with highest usage of fintech are china 3. GREENSKY is acting as a bridge and linking banks and
followed by India with usage of 69% and 52% respectively persons who intending home improvements and saves
followed by UK. Graphical representation showing adoption interest by offering zero interest loans during
rate of fintech's in different countries is as shown below. promotional periods.
4. TALA entered in to micro
finance world, by offering
credit to individuals with poor
or less credit history by doing
deep data analysis of the smart
phone they are using for
transaction history as well as
seemingly un related things
like what games user plays
etc.,

5. Google pay, phone pay
and Paytm etc., have changed
the payment habit of the
citizens. Due to their easiness
in their operation, seamless
and successful transactions,
have penetrated in to Indian
market and laid a platform for digital revolution in the
(Source: https://www.e-zigurat.com/innovation-school/blog/
financial market in the country.
evolution-of-fintech/ dt.10.08.2021)
As technology has become evermore central in the financial Why retail credit is affected by Fintech's
environment, actually banks and fintech's, are fighting with
more than any other credit segment?
each other to improve and protect their share in the market.
Retail credit, is a special kind of segment evolved in banks
even centuries before. Tailor made products specifically to
Fintech's being evolved with an objective to threat the
meet the consumer demands (End-use) - is a simplest
traditional financial services & to grab the market at a faster
definition for retail credit.
rate. Because of tech solutions, the processes involved are
nimble. Services will be offered to underserved population
It is also known as personal credit because of its character,
of the country at an affordable cost and in a faster way,
thereby disrupt the traditional financial service market.

Fintech in the market:
Some evolving fintech in the financial service market are,
1. AFFIRM is offering short term loans to e commerce
users, there itself on the site. It can take away larger
share of business of credit card by traditional banks as
it offers credit even to individuals with less or no credit
history.
2. BETTER MORTGAGE, streamlining the home loan
mortgage processes, through digital-only technology, by
rewarding to users with verified pre approvals, within
24 hours of applying.

BANKING FINANCE | JANUARY | 2023 | 27