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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470 | IF: 4.101

about 150 million in 2016, the digital banking 10. Public Relations: Moreover, the government has
footprint is projected to grow faster than ever before. also played a strong role in encouraging and educating
The NPCI has also introduced several innovative consumers in the economy towards digitized
products, such as RuPay cards, which will allow for monetary systems, providing a much need PR push
immediate money transfers and a more convenient towards digitisation. The industry is still suffering
experience for the customer. These initiatives provide from regulatory uncertainties, particularly with
a solid foundation for a digitally enabled financial respect to new business models enabled by Fintech
sector in India, giving Fintech start-ups the applications such as P2P transactions, crowd funding
opportunity to leverage these technologies and and data security. More than 40% of industry
initiatives to be adopted into the mainstream banking incumbents and start-ups reported such regulatory
experience in India. uncertainties to be a major hurdle while working to
implement innovative solutions.

11. Funding Trends: The Fintech sector saw a to do e-KYC checks more frugally, thereby reducing
decrease in global funding in 2016 due to increased transaction costs for customers.
global uncertainty, driven by lack of clarity
surrounding Brexit and the US presidential election, Facts & Figures
among others. VC-backed global Fintech investment The Fintech industry attracted over US$13.1b in VC-
in 2016 was $12.7 billion, which was down 13% from backed investments in 2016, about five times more
2015’s record high of $14.6 billion. A breakdown by than investments four years earlier (see Figure 1). The
geographical region found that Fintech investment in growth of the industry has strengthened the common
Europe and the US was affected the most. VC-backed belief that Fintech will disrupt banking. But
funding was down 25% YoY in Europe and 29% YoY collaboration — not competition — will be the
in the US in 2016. primary driver of disruption. A government push for
financial inclusion, digitization and startup activity
12. Aadhaar Adoption: The RBI recently has has led to the introduction of policy initiatives which
permitted Aadhaar based biometric authentication, provide a strong foundation to the Fintech sector in
which will consent for bank accounts to be opened India.
through e-KYC at any Banking Correspondent (BC)
location. This will allow financial services companies

@ IJTSRD | Available Online @ www.ijtsrd.com | Conference Issue: ICDEBI-2018 | Oct 2018 Page: 175