Sourav Seminar PPT.pdf.............................

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1. FinTech & its
Disruption in Banking
GURU JAMBESHWAR UNIVERSITY OF SCIENCE AND
TECHNOLOGY
Presented By -
Name - Sourav
Course - MBA Finance (P)
Roll No - 250101040044

2. FinTech refers to the use of technology
to provide, enhance and automate
financial services.
What does FinTech Mean?
It covers a wide range of applications that
streamline everything from payment and
investments to lending and personal
finance.

3. Financial Activities
Included in FinTech
money transfer
depositing a cheque with cheque depositing
machine
bypassing a bank branch to apply for credit
raising money for a business startup
or managing your investments, generally
without the assistance of a person.
Fintech now decribes a variety of financial activities, such as:

4. Traditional Banking
It consists of following aspects : -
In-person
transactions
Account
Management
Loan and
credit
services
Other
Financial
Products
Paper Based
Transactions

5. How FinTech Change
Traditional Banking
Convenience - 24/7 mobile access.
Speed - Fast loans, transfers and account opening.
Customization - Tailored financial solutions using data
analytics.
Financial Inclusion - Services to understand populations.
Low Operational Costs - Don’t have to maintain physical
branches or large staff team.

6. FinTech Disruptions in Banking
Increased Competition
Need for Digital Transformation
Traditional bank face pressure from new
FinTech competitors that have entered the
financial services space.
Bank must either integrate new technology
or completely revamp them to remain
relevant.

7. Shift in Business Models
Pressure on Profitability
Customer-centric models & provide a superior
customer experience
Intense competition and the need for
investment in FinTech has put pressure on
profit margin.
Data Privacy
FinTech company handle vast amount of
sensitive personal and financial data, making
them prime targets for cyberattacks and data
breaches.

8. Regulatory Compliance
It involves data protection, KYC norms,
cybersecurity, to ensure safe and legal
operations.
Case Study of Paytm
Overview -
Paytm Payment Bank fined Rs. 5.49 crore by FIU-IND under
PMLA (Prevention of Money Laundering Act).
Case linked to improper KYC and AML violations.

9. Key Issues -
Thousands of non-KYC or duplicate accounts.
Same PAN used for multiple wallets.
Dormant accounts used for suspicious transactions.
Weak internal monitoring and compliance.
Regulatory Action -
RBI ordered Paytm Payments Bank to stop fresh deposits and top-ups.
FIU-IND imposed Rs. 5.49 crore penalty (March 2024).
Paytm claimed issue was from an old business segment, now
discountinued.

10. Banks admit that they are having trouble facing
the Fintech challenge on their own:
Banking culture - risk averse
culture makes it difficult to
develop and execute vision
Concerns about security risks
Lack of agility. Slow to market
Unable to attarct the right
people

11. The Fintech firms that succeed will be the
ones that partner well - and their natural
partners are the banks.

12. Banks are not going to be Ubered or Amazoned. Instead, their
path will be to combine forces with Fintech through
acquisitions or partnerships. Some thoughts on “Fintegration”.
Instead IT in due diligence
and integration planning
Combining a bank and Fintech is at its heart
combining two technologies - start early with a
tech-driven roapmap to the end state.
Ring fence the new culture
Make regulatory
integration an early
ii
Keep the innovation of Fintech alive within a risk
conscious banking environment.
The exception is regulation - it is manadtory to
bring the accuireq entity under the bank’s
regulatory standards and systems.

13. Make data security an
early priority
Data Integration
Integration of Enterprise
Infrastructures
Security is top-of-mind for both parties, and
for good reason. Bring the combined entity
up to the higher security standard of the
two.
Create a data integration plan, with early
priority on creating one customer. Flexible
cloud systems should help.
Once these priorities have been met, the
process of integrating the two infrastructures
- data centres, data networks, network and
application architecture, etc - begins.

14. Conclusion of FinTech and disruption
in bankingThe ultimate conclusion of fintech’s disruption in banking is that it is not a replacement but a
powerful catalyst for transformation, innovation, and partnership. FIntech companies, with their
agile, technology-first approach, have compelled traditional banks to modernize, shifting the industry
from a place-first approach, have compelled traditional banks to modernize , shifting the industry
from a place-based service model to an activity-based, customer-centric one. The future of banking is
a hybrid model defined by collaboration rather than pure competition.