The Role of Fintech in financial markets.

A PowerPoint presentation showing how fintech has impacted financial markets in various ways.

1. The Role of FinTech in Financial Markets Transforming Traditional Financial Systems

2. index Introduction Types of Financial Core Impact Areas of FinTech FinTech Milestones in India The Road Ahead: Future of FinTech Summary & Conclusion

3. 1. Introduction to FinTech & Financial Markets FinTech refers to integrating technology in financial services to improve processes, products, and customer experience. Major technologies: Blockchain, AI, Big Data, Digital Platforms, eKYC , Automated Systems, Mobile Apps. Impact of FinTech : Increased market access for retail investors. Faster transaction execution and reduced costs. Real-time data, automation, and enhanced security.

4. 2. Evolution of Financial Markets with FinTech .

5. 2. Evolution of Financial Markets with FinTech: Equity Market Aspects Traditional Methods FinTech-Driven Methods Technologies Trading Method Manual trading through brokers, over the phone. Online trading via apps like Zerodha, Robinhood. Online Trading Platforms, Mobile Apps Settlement Time T+5 settlement (delayed) T+1 or T+2 settlements (faster). Blockchain, Real-Time Settlement Records Contract notes were Delivered via Posts Contract notes instantly delivered to emails Email Automation

6. Evolution of Financial Markets with FinTech: Forex Market Aspect Traditional Methods FinTech-Driven Methods Technologies Trading & Settlement Manual currency conversion, delayed settlement Instant currency conversion, real-time cross-border payments. Online trading platforms Information Flow Relied on physical trade confirmations via brokers. Digital platforms provide real-time data. Automated Forex Platforms Cost & Fees High fees for cross-border payments. Lower transaction fees using blockchain-based systems (Ripple, Stellar). Blockchain, P2P Systems

7. Evolution of Financial Markets with FinTech: Bond And commodity market Aspect Traditional Methods FinTech-Driven Methods Technologies Trading Manual trading through brokers via paper contracts, phone, etc. Online trading platforms. Digital Platforms Ownership Physical bond certificates. Dematerialized bonds for easier access and trading. Demat Services, Tokenization Market Accessibility Limited to large institutions. Fractional ownership and broader access. Tokenization Platforms,

8. 3. Core Impact Areas of FinTech .

9. Modern Kyc process Digitized KYC : Streamlined through e-KYC platforms. Online Verification : Instant identity verification via automated systems (e.g., Aadhaar-based in India). Digital Signatures : Secure electronic signing of documents, eliminating physical presence. Speed : Reduced processing time to minutes or hours.

10. Modern Trading Platforms & Execution Direct Access : Platforms like Robinhood, E TRADE, and Zerodha offer real-time trading from smartphones or computers. Instant Execution : Trades are executed almost immediately with automated systems. AI & Algorithms : Advanced automated trading and portfolio management tools, optimizing trade timing and strategy. Reduced Costs : Lower execution costs compared to traditional methods.

11. Modern Record Keeping & Settlement Digitized Records : Equity ownership maintained on secure electronic databases. Blockchain Technology : Ensures transparency and immutability, reducing fraud risk. Faster Settlements : Reduced to T+1 or T+0, processed electronically. Efficient Clearing : Minimizes delays and errors in the settlement process.

12. Modern Security & Compliance Reg-tech Solutions : Automated compliance with real-time regulatory checks. Advanced Fraud Detection : AI and machine learning for continuous monitoring and alerts. Encryption & Authentication : Advanced encryption, biometric authentication, and multi-factor authentication (MFA). Real-time Reporting : Automated, real-time regulatory reporting.

13. Modern Access to Financial Markets Democratization : Broader access for retail investors previously restricted to high-net-worth individuals and institutions. Low-Cost Access : Easy, affordable investment options through online platforms. Fractional Shares : Allows purchase of portions of shares, enabling smaller investments in high-value companies. Global Reach : Access to international markets with a few clicks.

14. 4. FinTech Milestones in India .

15. 4. FinTech Milestones in India UPI Revolution (2016) Unified Payments Interface (UPI) changed digital payments in India. 2023: UPI processed 74 billion transactions worth ₹139 trillion. Shifted India to a global leader in real-time digital payments. Aadhaar-Based eKYC Enabled instant digital identity verification for financial services. Reduced time and cost for KYC from days to minutes. Financial Inclusion: Pradhan Mantri Jan Dhan Yojana (PMJDY): Opened 500+ million bank accounts . Linked many to digital platforms like UPI, driving financial access.

16. 5. The Road Ahead: Future of FinTech .

17. 5. The Road Ahead: Future of FinTech AI & Algorithmic Trading: AI is expected to power 50% of market trading in India by 2025. Improves trading efficiency, reduces human error, and enables predictive analysis. Blockchain & CBDC (Central Bank Digital Currency): Blockchain revolutionizing settlement systems with secure, tamper-proof records. India piloting CBDC for digital transactions, aiming for full launch by 2025 . Robo-Advisors & Automated Investments: Robo-advisory market projected to handle ₹4 trillion in assets by 2028, making investing more accessible and affordable.

18. 6. Summary .

19. Summary FinTech's Transformation of Financial Markets: Enhanced access, speed, and security through digital innovation. Key technologies like UPI AI Blockchain Technology Robo-Advisors Big Data & Analytics Biometrics & Cybersecurity Internet of Things (IoT) Augmented Reality (AR) & Virtual Reality (VR) are leading the shift. Future Trends: AI-driven trading, blockchain for record-keeping, and India's move towards CBDC will continue to drive FinTech’s impact on financial markets.

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