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our society, culture and business. For consumers, the real tools that allow financial institutes to find "people like
promise of the ubiquitous connectivity of the IoT era is to you" or with similar profile for customers and prospects,
help us save time, work smarter, drive safer and live a allowing them to target and tailor offerings based on
healthier and more active lifestyle. Benefits of IoT in customer profile and behavior.
Banking and Finance Industry can be listed as; Management
Y Innovative distribution channels: Help in innovative
and Product Planning , Personalized Marketing , Cyber distribution channels to have wider reach of customers
Security , Customer Relationship Management , Proactive with low operational and acquisition cost.
Services , Data Analysis
Y Access to unserved/underserved segments: With
Financial Technologies and Its impact on improved distribution and innovative low-cost solutions
such as robo-advisors, firms can now tap into these
Financial Worlds: segments as well as with convenient and affordable
With the widespread use of financial technologies by the services.
Banks and Financial Institutions and the emergence of new Y Operational efficiency: Innovative technology with low
FinTech companies, the impact and benefits on the financial investment is lowering entry barriers and spurring
world can be enumerated as under: competition, which is forcing large traditional financial
Y New business models: Introduction of new business services firms to increase efficiency through process
models such as peer-to-peer (P2P) lending, which may
automation and business-model transformation.
have a significant impact on the lending sector.
Y Advanced data analytics: Advanced analytics, combined
Y Faster and more efficient service: Use of variety of
with broader pool of data sources give better risk
technologies to increase the accessibility and speed of management and underwriting capability, which is
their services (real-time updates, mobile connectivity) leading to lower costs and higher efficiency.
that appreciably enhance customer experience.
Y Personalization: Offers personalized customer service Benefits of financial technology for
and products by using customer data. Personalized
financial advice based on the risk appetite, lifestyle and consumers
life-stage needs and social affiliations/ preferences of Consumers stand to benefit by extensive use of financial
customers. Leveraging innovation to offer better technology in the financial world. Chief amongst the benefits
product with advanced underwriting and risk assessing they are set to experience, will be (i) increased competition
capabilities. and the gains in choice, service and value that follow; and
Y Lower-priced services: Use of Financial Technologies (ii) increased access and opens up financial services to groups
of consumers for whom such services had previously been
helps to reduce operating costs thereby provide
comparatively lower-priced services. beyond reach, or sub-optimal.

Y Predictive modeling: Using predictive and analytical
The challenges that FinTech presents for
consumers and regulators

The followings explore a number of issues where excessive
use of financial technology by the financial world:
Y Identity theft: FinTech has led financial services to
become the most intensive users of data. As a data
intensive ecosystem, FinTech gives rise to security
concerns around hacking and data breaches and in a
banking context, identity theft and the theft of assets
can be simultaneous, leading to potentially catastrophic
detriment for consumers
Y Breach of Privacy: As per "The Economist" reports an
intensifying data arms-race, and points to a situation

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