Fintech refers to a service or product which cuts across technology and finance. Covering everything from Blockchain/Cryptocurrency and Artificial Intelligence to data and the Internet-of-Things, it is becoming integral to India’s development agenda.
India’s financial technology (fintech) sector may be young but is growing rapidly, fueled by a large market base, an innovation-driven startup landscape, and friendly government policies and regulations.The FinTech industry’s rapid growth can be attributed to the three things: The Banks, Government and Startups.
With fintech now becoming integral to India’s development agenda, and given its dynamic nature, it is critical to have a holistic understanding to be able to ensure a comprehensive interplay of regulations/ policies/ laws for all the elements that are considered to be fintech. This will enable the streamlined growth of fintech in India, where it is currently at a nascent stage.
Fintech service firms are currently redefining the way companies and consumers conduct transactions on a daily basis. This is why global investments into fintech ventures have been increasing at record speed – tripling to US$ 12.2 billion in 2014 from US$ 4.05 billion in 2013, and reaching US$ 19.1 billion in 2015.
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, and reached US$ 450 million in 2015. India has a large untapped market for financial service technology startups – 40 percent of the population are currently not connected to banks and 87 percent of payments are made in cash.
With mobile phone penetration expected to increase to 85-90 percent in 2020 from 65-75 percent currently, and internet penetration steadily climbing, the growth potential for fintech in India cannot be overstated.
Fintech firms are breaking new ground in the formal finance sector through innovative and dynamic use of technology in the lending process and with the RBI’s intention to regulate the digital payments space in the country becoming increasingly clear, this online certification course becomes all the more relevant for the dynamic and evolving financial jurisprudence.
Given the fact that India has a huge potential to change into a developed economy, FinTech space has made use of new technologies and disruptive approaches to come up with better and innovative products. This trend is expected to continue and go bigger in the coming years. Banks will go through a revolutionary change with AI and MI in the centre of all the disruption that will happen in this sector.
Wealth management which consisted mainly of high net worth individuals now has room due to cheaper services to advise more customers in the coming times. There is automation in Corporate and Investment Banking, which has led to cost reduction and improved efficiency in all major banks. India is on the cusp of the FinTech revolution, accelerated in part by the Government’s policy initiatives and development of the Indian Stack. India’s vast under-banked and new-to-bank population makes it the most exciting opportunity place to be in right now. It is now to be seen as to how the FinTech revolution is going to change the habits and behavior of the Indian population.
The year 2018 was a big one for the Indian financial technology and financial services ecosystem. With $2.34 billion being raised across 145 deals, fintech finally unseated eCommerce from the top of the list after years of dominance. The year, also saw multiple regulations that led to shifts in the sector. Among these was the Supreme Court’s judgement on Aadhaar in September. The apex court struck down Section 57 of the Aadhaar Act, which allowed the sharing of citizens’ data with private entities.
Subsequently, UIDAI cut APIs to the industry, and Indian retail payment organisation National Payments Corporation of India (NPCI) suspended the e-sign mandate. Not only did these moves hit the growth rate of Indian fintech startups, it also made the customer onboarding processes more cumbersome and made it difficult for players to collect auto-mandated payments.
Looking at the industry-wide impact, many fintechs have turned to offline collection of documents to keep their operations afloat. However, 2019 might well see an interesting trend with the evolution of specialised players who support fintechs by helping them onboard offline customers.
The topics covered by Enhelion for this course cover the following:
- Module 1: RBI Regulation of the Financial Sector
- Module 2: Legal Framework Governing FinTech Space
- Module 3: Security Risks faced by FinTech
- Module 4: FinTech Companies v. Financial Institutions
- Module 5: Evolving Relationship between FinTech, Regulators and Financial Institutions
- Module 6: Payment and Settlements Systems Act 2007 [PSS Act] and PSS Regulations 2008
- Module 7: Regulatory Sandbox for FinTech
- Module 8: Artificial Intelligence [AI] and FinTech
- Module 9: FinTech and Indian Scenario
This particular Enhelion course is very useful as it will help the paritcipants to have a deeper understanding of the dynamism of the term ‘fintech’ as the course elaborates upon the legal framework governing FinTech space and also takes the participants through detailed analysis of the security risks faced by FinTech in the Indian scenario.
For more details on our Certification course on Fintech and The Law Contact Us or write to us on info@enhelion.com