e-ISSN: 2582-5208

International Research Journal of Modernization in Engineering Technology and Science

( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:04/April-2023 Impact Factor- 7.868 [Link]

GROWTH OF FINTECH IN BANKING INDUSTRY IN INDIA

Rohit Jain*1, Dr. Mercia Selva Malar*2
*1,2Dept. Of Finance, Xavier Institute Of Management And Entrepreneurship,
Bangalore, India.
ABSTRACT
Fintech could be a new trend in today's global market. Giving a whole new shape to the global financial
sector. This new venture between finance and technology is finding success in India with the help of new
startups. Today, India competes with China for the adoption of fintech applications. Financial institutions,
governments, regulators, and corporations all have a part to play in pushing this new idea forward in India.
India is projected to contribute 2% to the global digital payments market by 2023, according to a KPMG
report. This is made possible by additions within the Connectivity Technology Plan, Market Systems.
We used to go to the bank a lot, and as a result, we spent too much money on our daily transactions. But with
the recent trend of going cashless, technology, he wants to create a variety of transactions from one source. And
not just to make payments, today we have several applications that allow American nations to buy stocks and
manage their investments. Several governments are coming and initiatives are pushing this company into the
Indian market such as Jan Dhan Yojana, Digital India program running on digital payment gateways. The use of
fintech apps has overheated during this pandemic, with people paying online mainly for caution and security
reasons, and even domestic providers are easily accepting payments. Measure progress in shaping the sharing
economy and customer intelligence while chains, AI, etc., continue to decline.
I. INTRODUCTION
Innovation and generation have fundamentally changed the traditional money supply. Currently, technology
appears to be the primary key to the growth of cryptocurrency devices. Over time Indian banks and commercial
issuers have carefully found time to expand their customer reach and offer telcos and operational performance
in evolving markets and technological developments. However, the pace of technology adoption is still not the
same as functionality.
So there is a gap in the implementation of financial offers. Traditional banks and financial institutions have
positioned Generation as a potential improvement in business organization propositions to sites that actually
create propositions for new commercial enterprises. However, financial technology (FinTech) companies are
enhancing this trait by turning to digital technologies to create new industrial organizational forms and address
new market segments that were previously unviable. Even RBI could step up the fintech sector to expand the
reach of banking services to the unbanked.
Fintech is a legitimate view of leveraging generation to offer new financial products and iconic products that
capture new market segments in a commercially viable way. From a version standpoint, the FinTech space
is emerging with the help of technology conglomerates, each of which has intermediaries or partners
with established banks and financial institutions outsourcing their strategic payments and marketplaces. trying
to eliminate Fintech is therefore being used by all major players within Indian business service organizations
such as regulators, traditional banks, NBFCs, clearing banks, buyers, fee service providers, brokerage firms,
asset management companies, insurance companies, and of course gambling. It is increasingly becoming the
number one attraction for stakeholders. FinTech game enthusiast.
II. LITERATURE REVIEW
Analytical studies state that the fintech approach began with the development of technology to create
humanoids that imbibe humans and conduct financial transactions. However, the use of humanoids has
communicative and humane implications. FinTech has the modulation to add value to financial services.
(Arslanian, H., & Fischer, F.) oversees the greater integration of technology for the distribution of financial
instruments requires appropriate oversight, control, and governance to operate in accordance with financial
sector compliance and reporting standards. Kang, J. (2018) Security and privacy of customer data are also
important issues for Fintech development. Technical mechanisms allow robust authentication systems to avoid
[Link] @International Research Journal of Modernization in Engineering, Technology and Science
[396]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:04/April-2023 Impact Factor- 7.868 [Link]
data breaches. Fintech's innovative advantages are rapidly penetrating the financial market, saturating the
notch developed by traditional financial institutions and significantly increasing user satisfaction. Ray, T.
(2020, June 09). The range of research and literature sources available reflects the growing research and
interest in approaches related to Fintech and its role in the Indian financial system. Moreover, the correlation
between FinTech's financial efficiency and COVID-19 pandemic in India is very important.
Growth Of Fintech evaluates the Bank Correspondent (BC) model that was introduced in 2005 to facilitate the
penetration of financial services into rural households. Dubey, V. (2019). Companies such as FinoPayTech and
Eko India are key start-ups that have taken advantage of this opportunity and built their services around the BC
model. From 2005 to 2010, prominent fintech startups such as Oxygen, Mobikwik, Paytm and Freecharge
emerged. Rega, F.G.(2018) elaborates the emergence of these payment startups occurred with mobile
wallets, electronic bill payments, and mobile top-up services respectively. Several FinTech startups have
emerged in different segments such as lending (100+), personal finance management (40+) and investment
management (90+). From 2014 to 2016, venture capital firms funding fintechs increased his
investments by 40%. This growth is due to the growth of the Internet.
Innovation and Technology have fundamentally transformed traditional financial services. Today, technology
seems to be the key to the growth of the digital economy. Gupta, S., & Yadav, A. (2017). Over the past
year, Indian banks and financial services providers have carefully adopted technology to expand their reach
to customers, improve their services and operational efficiencies in line with growing markets and
technological advances. Gopalan, S., Jain, G., Kalani, G., & Tan, J. (2012) argues the dynamics of technology
adoption have not reached their potential. Therefore, there is a gap in the realization of financial services.
Traditional banks and financial institutions recognize that technology can enhance business propositions
rather than create new business propositions themselves. Anand, V., & Bhatia, P. (2017) overviews the
financial technology (FinTech) companies are changing this role, using digital technology to establish new
business propositions and address new market segments that were not previously possible. RBI is enabling the
development of the fintech sector and expanding the reach of banking services to the unbanked.
Banking Industry assesses that all stages since the global financial crisis of 2008 were pivotal moments
separating the early stages of development of financial technology 'FinTech' from the current model of
regulatory technology 'RegTech' doing. Kumar. (2021) presents the global situation represents a new world of
financial technology institution development, represented by a growing number of start-ups. Thakor, A. V.
(2020) states that most of these start-ups are IT and e-commerce companies that have entered the financial
services market. Regulators face new challenges from the growing fintech industry. Similar parallels can be
seen with the growth of technology-regulated companies.
III. OBJECTIVES
 To verify that Government initiatives have infused the growth of fintech in the banking industry.
 To identify the most used financial technologies in BFSI
 To identify the most used financial technologies in specific banking business applications.
HYPOTHESIS
 Government support has a positive impact on the effect of fintech on the banking industry.
 Financial Technologies have a positive impact on Banking Sector.
 Financial Technologies have a positive impact on banking applications.
 Covid has influenced the growth of fintech.
 PEs and VCs have influenced the growth of fintech.
IV. DATA COLLECTION
This is the process of carefully gathering all the relevant data from multiple sources to help explain the
complexity of the study. There are secondary and primary methods of data collection. This paper
contains secondary data to fully understand the research objectives. Journal articles, book chapters, guides,
organizational reports, consulting reports, newsletters, and websites are secondary data sources. Most of the
secondary data comes from research papers and statements. These provide food for thinking about market
[Link] @International Research Journal of Modernization in Engineering, Technology and Science
[397]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:04/April-2023 Impact Factor- 7.868 [Link]
trends in particular. Also, the motivation for choosing secondary sources is that data on FinTechs, the Indian
financial system, and future activities are confidential. Therefore, primary sources cannot provide the same.
Therefore, secondary source helps to evaluate and analyze other actions.
V. FINDINGS AND RESULTS
This section contains the main points or keywords of the collected data. Collected data leads to empirical
insights that help generate valuable results for research. Answers to research questions in this study are
provided based on empirical findings and results will be used for further conclusions.
GOVERNMENT INITIATIVES
Government support has been key – not solely from the regulative stance – but conjointly in providing crucial
facultative help. Be it broadband infrastructure to boost web access in rural areas or digital accomplishment
and monetary programs, varied government programs have accelerated the expansion of the Fintech business
in the Republic of India. These embody the Startup Republic of India, Digital Republic of India program,
Republic of India Stack, January Dhan Yojana, regulative sand boxes by run, and IRDAI for Fintech. Moreover, a
strong public digital infrastructure assisted with Aadhar, UPI, account aggregation, etc, and a supportive
regulative setting has alleviated and increased the technological transition in the Republic of India. Regulators
(RBI, IRDAI, and SEBI) have undertaken varied measures to make sure multiplied responsibleness and also
the uninterrupted handiness of a secure and cheap digital monetary system.
JAN DHAN YOJANA
Launched in August 2014, PM Jan Dhan Yojna is aimed at achieving financial inclusion at the last mile. It is a
scheme that allows new bank account enrolment of beneficiaries for the transfer of direct benefits and helps in
accessing various financial services applications.

SOURCE – [Link] (PRADHAN MANTRI JAN DHAN YOJANA)

DIGITAL INDIA
Digital India is a campaign launched by the Government of India to make government services electronically
accessible to citizens by improving online infrastructure and internet connectivity or digitally empowering the
country in the technological sector. The launch of the government's Digital India initiative indicates that the
country's digital population will reach around 658 million active users in February 2022, following the rise in
internet penetration in recent years.

[Link] @International Research Journal of Modernization in Engineering, Technology and Science

[398]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:04/April-2023 Impact Factor- 7.868 [Link]

UNIFIED PAYMENTS INTERFACE

Unified Payments Interface is a real-time payment system developed by the National Payments Corporation of
India. This interface enables peer-to-peer and person-to-merchant transactions between banks. Use
it on your mobile device to instantly transfer money between two bank accounts. Considering the above
situation, NPCI conducted a pilot launch with 21 member banks. The pilot project was started on April 11,
2016, by Dr. Lagram G Rajan, RBI Governor of Mumbai. The bank started uploading UPI-enabled apps
to its Google Play store starting August 25, 2016.

Value of Unified Payments Interface (UPI) transactions in India from the financial year 2019 to 2021, with
estimates until 2026

[Link] @International Research Journal of Modernization in Engineering, Technology and Science

[399]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:04/April-2023 Impact Factor- 7.868 [Link]
BHARAT INTERFACE FOR MONEY (BHIM)
BHIM is an Indian mobile payment app developed by the National Payments Corporation of India and based on
the Unified Payments Interface. Launched on December 30, 2016, the service aims to facilitate electronic
payments directly through banks and facilitate cashless transactions. The number of transactions made through
the Bharat Interface for Money (BHIM) app surpassed 25 million in January 2022. Android as of September 30,
2022: -199.15 million installs (including devices that previously had his BHIM app installed). iOS installs as of
September 30, 2022: 5.05M. The growth of BHIM App and the volume of transactions involving BHIM has been
depicted in the form of a table below.
YEAR-ON-YEAR GROWTH OF BHIM
TABLE 1
NUMBER OF TIMES BHIM %INCREASE FROM
YEAR VOLUME % INCREASE
APP HAS BEEN INSTALED THE PREVIOUS YEAR

2017 34 - 9.03 -
2018 44 129.41 7.99 88.48
2019 19 43.18 0.76 9.51
2020 23 121.05 6.89 906.57
2021 88 382.60 2.3 33.38
2022 47 53.40 1.99 86.52
SOURCE – BHIM WEBSITE
GROWTH FROM BASE YEAR
TABLE 2
YEAR % INCREASE FROM THE BASE YEAR

2017 34 -
2018 44 129.41
2019 19 55.88
2020 23 67.64
2021 88 258.82
2022 47 138.23
SOURCE – [Link] (BHIM Website)
TRADE RECEIVABLES DISCOUNTING SYSTEM (TReDS)
M1xchange TReDS is a digital marketplace for the sale of receivables to banks/NBFCs set up with the approval
of the Reserve Bank of India (RBI) to facilitate bills and bill discounting on a PAN India basis.
On 24th November 2015, the Reserve Bank of India (RBI) gave its approval "in principle" to the three
companies to set up the Accounts Receivable Discounting System (TReDS) platform. Mynd Solutions Pvt
Ltd launched its TReDS platform 'M1xchange' on April 7, 2017, under the Payment and Settlement System
(PSS) Act 2007 with invoices and invoice discounts for MSMEs to PAN promotion India It is one of three
companies that have migrated. base. M1xchange was launched on 7th April 2017 to meet the financial needs of
SMEs across India. The exchange allows small businesses to secure financing by converting their accounts
receivable into cash without refunds. The exchange hosted nationalized private and foreign banks
to fund these claims on the most competitive terms using a proprietary bank bidding model.”

[Link] @International Research Journal of Modernization in Engineering, Technology and Science

[400]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:04/April-2023 Impact Factor- 7.868 [Link]
INDIA STACK
The India Stack is a moniker for a set of open APIs and digital public goods that aim to unlock the economic
primitives of identity, data, and payments at the population scale. Although the name of this project bears the
word India, the vision of India Stack is not limited to one country; it can be applied to any nation whether
developed or developing.
Total number of digital identity verifications - 67 billion
INR total value of monthly real-time mobile payments - 5.47 trillion
The total volume of monthly real-time mobile payments is 2.8 billion
E- PAYMENTS FOR EVERYONE, EVERYWHERE, AND EVERY TIME (4E’s)
We aim to provide all users with safe, secure, fast, convenient, accessible and affordable electronic payment
options. It aims to provide strategic direction and implementation plans for the structured development of
India's payment and settlement system through its periodic Payments Vision document launched in 2001.
How COVID has influenced the growth of Fintech
As COVID-19 sweeps the world, there is a paradigm shift in customer priorities and business service delivery.
This is driving the need for digital transformation in every industry. Block notifications and social distancing,
for example, are fueling the tremendous growth of digital financial services fueled by the growth of e-
commerce. Therefore, fintech companies have room to innovate and create innovative solutions for their
customers. Meanwhile, businesses will seize the opportunity to invest in mobile HE applications, e-shops and
other ways to improve customer experience.
In recent years, the government has initiated several national-level initiatives to centralize digital payment
systems. One of the biggest game changers like Unified Payments Interface (UPI) and Reserve Bank of India,
which regulate India's digital payment environment, has boosted its business. Among all other forms, UPI is
considered the most convenient way of investing. Since customers can pay without fees, many companies
integrate cross-channel UPI payment methods to help customers send and receive payments seamlessly. In
addition, these initiatives will help the country reach its financial inclusion goals and boost the business sector.
Additionally, India's growing startup culture is driving investment in the fintech sector. India's 33 deals are
worth $647.5 million compared to China's $284.9 million in the June 2020 quarter, according to the report,
giving the fintech segment a was the most invested.
PEs and VCs have influenced the growth of fintech
India is growing rapidly, with over 4,200 fintech startups developing credit and debit cards, co-branded cards,
fintech SaaS and other fintech products and solutions, making it a global fintech hub. It is Do it in Japan.
According to a report by Inc42, India's fintech startup ecosystem will create a $1.3 trillion market opportunity
by 2025, with a CAGR of 31% from 2021 to 2025. 21 fintech unicorns in India and over 550 startups funded.
The success of India's fintech ecosystem is driven not only by startups but also by fintech investors. Fintech has
raised its $23.6 billion venture capital funding in India since 2014, slightly lagging behind some segments such
as consumer internet and e-commerce. In the first quarter of 2022, he had 81 deals in the fintech sector with a
total value of $1.77 billion. Compared to the first quarter of 2021, the amount increased by 155%,
and compared to the previous fourth quarter of 2021, it increased by 45%. This number is larger
than all fintech funding in 2020, accounting for almost 44% of all funding in 2021. Of the 1,219 fintech loans
from 2014 to 25 June 2022, 676 were from the region's 30 largest investors, accounting for more than 55% of
total loans.
PRIVATE BANKS IN INDIA
TABLE 3
NAME TECHNOLOGY TECHNOLOGY TECHNOLOGY

ARTIFICIAL
HDFC MACHINE LEARNING BLOCKCHAIN
INTELLIGENCE

[Link] @International Research Journal of Modernization in Engineering, Technology and Science

[401]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:04/April-2023 Impact Factor- 7.868 [Link]
ARTIFICIAL
ICICI MACHINE LEARNING BLOCKCHAIN
INTELLIGENCE
ARTIFICIAL
IDFC MACHINE LEARNING BLOCKCHAIN
INTELLIGENCE
ARTIFICIAL
DCB BLOCKCHAIN
INTELLIGENCE
ARTIFICIAL
YES MACHINE LEARNING BLOCKCHAIN
INTELLIGENCE
ARTIFICIAL
SOUTH INDIAN BLOCKCHAIN
INTELLIGENCE
ARTIFICIAL
KOTAK MAHINDRA BLOCKCHAIN
INTELLIGENCE
ARTIFICIAL
FEDERAL BLOCKCHAIN
INTELLIGENCE
ARTIFICIAL
AXIS MACHINE LEARNING BLOCKCHAIN
INTELLIGENCE
ARTIFICIAL
INDUSIND BLOCKCHAIN
INTELLIGENCE
ARTIFICIAL
IDBI MACHINE LEARNING BLOCKCHAIN
INTELLIGENCE
ARTIFICIAL
KARUR VYSYA MACHINE LEARNING BLOCKCHAIN
INTELLIGENCE
ARTIFICIAL
DHANLAXMI BLOCKCHAIN
INTELLIGENCE

SOURCE - Compiled
The above table provides the financial technologies that are used by private banks in India. As we can see,
Artificial Intelligence and Blockchain are the most widely used by private banks.
PUBLIC BANKS IN INDIA
TABLE 4
NAME TECHNOLOGY TECHNOLOGY TECHNOLOGY

ARTIFICIAL
SBI MACHINE LEARNING BLOCKCHAIN
INTELLIGENCE
ARTIFICIAL
BANK OF BARODA BLOCKCHAIN
INTELLIGENCE
ARTIFICIAL
CANARA BLOCKCHAIN
INTELLIGENCE
INDIAN BANK BLOCKCHAIN
ARTIFICIAL
INDIAN OVERSEAS MACHINE LEARNING BLOCKCHAIN
INTELLIGENCE
ARTIFICIAL
UCO
INTELLIGENCE
[Link] @International Research Journal of Modernization in Engineering, Technology and Science
[402]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:04/April-2023 Impact Factor- 7.868 [Link]
ARTIFICIAL
UNION
INTELLIGENCE

SOURCE - Compiled
The above table provides data on the financial technologies used by public banks in India. The widely used
technology is Artificial Intelligence, followed by blockchain and the least used is machine learning.
FOREIGN BANKS IN INDIA
TABLE 5
NAME TECHNOLOGY TECHNOLOGY TECHNOLOGY TECHNOLOGY

MACHINE ARTIFICIAL
CITI BLOCKCHAIN
LEARNING INTELLIGENCE
MACHINE ARTIFICIAL
HSBC BLOCKCHAIN
LEARNING INTELLIGENCE
BANK OF MACHINE ARTIFICIAL
BLOCKCHAIN
AMERICA LEARNING INTELLIGENCE
MACHINE ARTIFICIAL
DEUTSCHE BLOCKCHAIN IOT
LEARNING INTELLIGENCE
ARTIFICIAL
BARCLAYS BLOCKCHAIN IOT
INTELLIGENCE
MACHINE ARTIFICIAL
DBS BLOCKCHAIN
LEARNING INTELLIGENCE
STANDARD MACHINE ARTIFICIAL
BLOCKCHAIN
CHARTERED LEARNING INTELLIGENCE
MACHINE ARTIFICIAL
RBL BLOCKCHAIN
LEARNING INTELLIGENCE

SOURCE - Compiled
The above table provides data on the financial technologies used by foreign banks in India.
BANKS AND TYPE OF TECHNOLOGY THEY ARE USING FOR THEIR DAY-TO-DAY ACTIVITIES
TABLE 6
ARTIFICIAL
BANK MACHINE LEARNING BLOCKCHAIN IOT
INTELLIGENCE

PRIVATE
HDFC ACCOUNT OPENING PAYMENTS LOAN
ICICI ACCOUNT OPENING LOAN PAYMENTS
ACCOUNT
IDFC PAYMENTS LOAN
OPENING
PAYMENTS +
DCB ACCOUNT LOAN
OPENING

[Link] @International Research Journal of Modernization in Engineering, Technology and Science

[403]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:04/April-2023 Impact Factor- 7.868 [Link]
ACCOUNT
YES PAYMENTS OPENING + PAYMENTS
LOAN
ACCOUNT
SOUTH INDIAN PAYMENTS
OPENING
ACCOUNT
KOTAK
OPENING + LOAN
MAHINDRA
PAYMENTS
ACCOUNT
FEDERAL LOAN
OPENING
ACCOUNT
AXIS PAYMENTS OPENING + LOAN
PAYMENTS
ACCOUNT
PAYMENTS +
INDUSIND OPENING +
LOAN
PAYMENTS
IDBI ACCOUNT OPENING PAYMENTS LOAN
ACCOUNT
KARUR VYSYA ACCOUNT OPENING LOAN
OPENING
LOAN +
DHANLAXMI ACCOUNT PAYMENTS
OPENING

PUBLIC
PAYMENTS +
SBI ACCOUNT OPENING PAYMENTS
LOAN
ACCOUNT
BANK OF
OPENING + LOAN
BARODA
PAYMENTS
ACCOUNT
CANARA OPENING + LOAN
PAYMENTS
ACCOUNTS
OPENING +
INDIAN BANK
PAYMENTS +
LOAN
INDIAN
ACCOUNT OPENING PAYMENTS LOAN
OVERSEAS
ACCOUNT
OPENING +
UCO
PAYMENTS +
LOAN
ACCOUNT
UNION
OPENING +

[Link] @International Research Journal of Modernization in Engineering, Technology and Science

[404]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:04/April-2023 Impact Factor- 7.868 [Link]
PAYMENTS

FOREIGN
CITI ACCOUNT OPENING PAYMENTS LOAN
ACCOUNT
HSBC PAYMENTS + LOAN LOAN
OPENING
BANK OF ACCOUNT PAYMENTS +
CASH FLOW FORECASTING
AMERICA OPENING LOAN
DEUTSCHE ACCOUNT OPENING LOANS PAYMENTS PAYMENTS
ACCOUNT
OPENING +
BARCLAYS PAYMENTS PAYMENTS
PAYMENTS +
LOAN
BUILDING
LOAN +
DBS ACCOUNT OPENING DIGITAL
PAYMENTS
ASSETS
STANDARD LOAN +
ACCOUNT OPENING PAYMENTS
CHARTERED PAYMENTS
LOAN +
RBL PAYMENTS PAYMENTS ACCOUNT
OPENING

SOURCE - Compiled
INFERENCE: The above table provides a detailed analysis of the financial technologies used by private, public,
and foreign banks in India and for what purpose the financial technologies are used.
FINANCIAL TECHNOLOGIES USED BY BANKS
TABLE 7
TYPE OF MACHINE ARTIFICIAL
NUMBER BLOCKCHAIN IOT
BANK LEARNING INTELLIGENCE

Number / Number / Number /

Percentage Percentage Percentage
PRIVATE 15 9 60 13 86.66 13 86.66 0 0
PUBLIC 7 2 28.57 6 85.7 5 71.42 0 0
FOREIGN 8 7 87.5 8 100 8 100 2 25

INFERENCE: The table provides the data for the financial technologies used by private, public, and foreign
banks in India, and which financial technology is most used by the three types of banks. As we can see 60%
(9/15) of private banks use machine learning, 86.66% (13/15) of private banks use artificial intelligence, and
86.66% (13/15) of private banks use blockchain technology.
Coming to public banks, 28.57% (2/7) use machine learning, 85.7% (6/7) use artificial intelligence, and 71.42%
(5/7) use blockchain technology.

[Link] @International Research Journal of Modernization in Engineering, Technology and Science

[405]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:04/April-2023 Impact Factor- 7.868 [Link]
Next, the foreign banks, 87.5% (7/8) use machine learning, 100% (8/8) use artificial intelligence, 100% (8/8)
use blockchain, and 25% (2/8) use IOT technology.
From the data, we can easily evaluate that foreign banks have a better adoption rate of technologies across all
four technologies, followed by private banks and then the public sector banks.
BANKS USING MACHINE LEARNING FOR THEIR DAY-TO-DAY ACTIVITIES
TABLE 8
TYPE OF BANK MACHINE LEARNING
ACCOUNT OPENING PAYMENTS LOAN

Number / Percentage Number / Percentage Number / Percentage

PRIVATE 6 50 3 60 0 0
PUBLIC 2 16.66 0 0 0 0
FOREIGN 4 33.37 2 40 1 100

TOTAL 12 5 1
The above table shows detailed information on how the private, public, and foreign banks are using Machine
Learning and for which banking service. As we can see from the data, Machine Learning is mostly used for
Account Opening, followed by Loan services, and is barely used for payments.
First, of the private banks, 50% (6/12) use machine learning for account opening, 60% (3/5) use it for
payments and none of the private banks use machine learning for loan activity.
Second, of the public banks, 16.66% (2/12) use machine learning for account opening and none of the public
banks use machine learning for payments and loan activity.
Third, of the foreign banks, 33.37% (4/12) use machine learning for account opening, 40% (2/5) use it for
payments and 100% (1/1) use it for loan activity.
From the data, we can easily conclude that foreign banks use machine learning for all three activities, whereas
private banks use machine learning for two activities and public banks use it only for account opening.
BANKS USING ARTIFICIAL INTELLIGENCE FOR THEIR DAY-TO-DAY ACTIVITIES
TABLE 9
ARTIFICIAL
TYPE OF BANK
INTELLIGENCE
ACCOUNT OPENING PAYMENTS LOAN

Number / Percentage Number / Percentage Number / Percentage

PRIVATE 10 58.82 6 35.30 3 37.5
PUBLIC 4 23.52 6 35.30 1 12.5
FOREIGN 3 17.64 5 29.40 4 50

TOTAL 17 17 8
The above table shows detailed information on how the private, public and foreign banks are using Artificial
Intelligence and for which banking service. As we can see from the data, Artificial Intelligence is mostly used for
Account Opening and Loan services by banks and the least for Payment services.

[Link] @International Research Journal of Modernization in Engineering, Technology and Science

[406]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:04/April-2023 Impact Factor- 7.868 [Link]
First, the private banks, 58.82% (10/17) use artificial intelligence for account opening, 35.30% (6/17) use it for
payments, and 37.5% (3/8) for loan activity.
Second, the public banks, 23.52% (4/17) use artificial intelligence for account opening, 35.30% (6/17) use it for
payments, and 12.5% (1/8) use it for loan activity.
Third, the foreign banks, 17.64% (3/17) use artificial intelligence for account opening, 29.40% (5/17) use it for
payments, and 50% (4/8) use it for loan activity.
We can easily evaluate that private banks have the highest adoption rate of artificial intelligence, followed by
public banks, and then comes foreign banks.
BANKS USING BLOCKCHAIN FOR THEIR DAY-TO-DAY ACTIVITIES
TABLE 10
TYPE OF BANK BLOCKCHAIN
ACCOUNT OPENING PAYMENTS LOAN

Number / Percentage Number / Percentage Number / Percentage

PRIVATE 0 0 6 50 8 47.05
PUBLIC 1 50 2 16.67 5 29.42
FOREIGN 1 50 4 33.33 4 23.53

TOTAL 2 12 17
The above table shows detailed information on how the private, public, and foreign banks are using Blockchain
and for which banking service. As we can see, banks are using the Blockchain mostly for Payment services,
followed by Loan services, and the least for Account Opening.
First, the private banks, none of the private banks (0/2) use blockchain for account opening, 50% (6/12) use it
for payments, and 47.05% (8/17) for loan activity.
Second, the public banks, 50% (1/2) use blockchain for account opening, 16.67% (2/12) use it for payments,
and 29.42% (5/17) use it for loan activity.
Third, the foreign banks, 50% (1/2) use blockchain for account opening, 33.33% (4/12) use it for payments,
and 23.53% (4/17) use it for loan activity.
We can easily evaluate that foreign banks have the highest adoption rate of blockchain, followed by public
banks, and then comes private banks.
BANKS USING IOT FOR THEIR DAY-TO-DAY ACTIVITIES
TABLE 11
TYPE OF BANK IOT
ACCOUNT OPENING PAYMENTS LOAN

Number / Percentage Number / Percentage Number / Percentage

PRIVATE 0 0 0 0 0 0
PUBLIC 0 0 0 0 0 0
FOREIGN 0 0 2 100 0 0

TOTAL 0 2 0

[Link] @International Research Journal of Modernization in Engineering, Technology and Science

[407]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:04/April-2023 Impact Factor- 7.868 [Link]
The above table shows detailed information on how the private, public, and foreign banks are using IOT and for
which banking service. As we can see, foreign banks are the only bank using the IOT, and that too only for
Payment services.
FINANCIAL TECHNOLOGIES ADOPTED BY BANKS WITH RESPECT TO GOVERNMENT INITIATIVES
TABLE 12
GOVERNMENT MACHINE ARTIFICIAL
YEAR BLOCKCHAIN IOT TOTAL
INITIATIVE LANGUAGE INTELLIGENCE

Number / Number / Number / Number /

Percentage Percentage Percentage Percentage
DIGITAL INDIA 2015 - - - - -
UPI 2016 2 22.22 3 33.33 3 33.33 1 11.11 9
NACH 2016 2 22.22 3 33.33 3 33.33 1 11.11 9
BHIM 2016 2 22.22 3 33.33 3 33.33 1 11.11 9
TREDS 2017 7 33.33 8 38.10 6 28.57 0 0 21
INDIA STACK 2018 5 27.77 7 38.88 6 33.33 0 0 18
- 2019 0 0 1 20 4 80 0 0 5
- 2020 2 33.34 3 50 1 16.66 0 0 6
- 2021 0 0 4 50 4 50 0 0 8
4E’s 2022 0 0 0 0 1 100. 0 0 1

INFERENCE: The above data provides information about which government initiative has infused the growth of
Fintech in Banks.
In 2016 UPI initiative was launched, 9 FinTechs were adopted by banks, 22.22% (2/9) machine language was
adopted, 33.33% (3/9) artificial intelligence was adopted, 33.33% (3/9) blockchain was adopted, and 11.11%
(1/9) IOT was adopted and that too only by the foreign banks.
In 2016 NACH initiative was launched, 9 FinTechs were adopted by banks, 22.22% (2/9) machine language was
adopted, 33.33% (3/9) artificial intelligence was adopted, 33.33% (3/9) blockchain was adopted, and 11.11%
(1/9) IOT was adopted and that too only by the foreign banks.
In 2016 BHIM initiative was launched, 9 FinTechs were adopted by banks, 22.22% (2/9) machine language was
adopted, 33.33% (3/9) artificial intelligence was adopted, 33.33% (3/9) blockchain was adopted, and 11.11%
(1/9) IOT was adopted and that too only by the foreign banks.
In 2017 TReDS initiative was launched, 21 FinTechs were adopted by banks, 33.33% (7/21) machine language
was adopted, 38.10 % (8/21) artificial intelligence was adopted, 28.57% (6/21) blockchain was adopted, and
none of the banks had adopted IOT.
In 2018 India Stack initiative was launched, 18 FinTechs were adopted by banks, 27.77% (5/18) machine
language was adopted, 38.88% (7/18) artificial intelligence was adopted, 33.33% (6/18) blockchain was
adopted, and none of the banks had adopted IOT.
In 2019 no government initiative was launched, 5 FinTechs were adopted by banks, 20% (1/5) adopted
artificial intelligence, 80% (4/5) adopted blockchain, and none of the banks adopted machine learning and IOT.
In 2020 no government initiative was launched, 6 FinTechs were adopted by banks, 33.34% (2/6) adopted
machine learning, 50% (3/6) adopted machine learning, 16.66% (1/6) adopted blockchain, and none of the
banks adopted IOT.

[Link] @International Research Journal of Modernization in Engineering, Technology and Science

[408]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:04/April-2023 Impact Factor- 7.868 [Link]
In 2021 no government initiative was launched, 8 FinTechs were adopted by banks, 50% (4/8) adopted
artificial intelligence, 50% (4/8) adopted blockchain, and none of the banks adopted machine learning and IOT.
In 2022, only 1 FinTech was adopted and that was IOT.
During the Treds initiative, there has been the highest number of FinTech adoptions by banks (21) Artificial
Intelligence was the most adopted FinTech. Artificial Intelligence was the most adopted FinTech, followed by
Machine Learning and then Blockchain.
The next initiative which made a huge impact is the India stack initiative. A total of 18 FinTech adoptions were
made by the banks. Artificial Intelligence was the most adopted FinTech, followed by Blockchain and then
Machine Learning.”
VI. CONCLUSION
As seen from the collected data, government initiatives have definitely pushed the growth of fintech in the
banking industry. More and more banks are on the verge of adopting fintech for their day-to-day activities.
During the Treds initiative, there has been the highest number of FinTech adoptions by banks (21) Artificial
Intelligence was the most adopted FinTech. Artificial Intelligence was the most adopted FinTech, followed by
Machine Learning and then Blockchain.
Another initiative that has had a huge impact is the India stack initiative. Banks made a total of 18 FinTech
adoptions. Artificial Intelligence was the most widespread FinTech, followed by Blockchain and then Machine
Learning.
Over the past two years, India has become more accepting of FinTech businesses and fostered widespread
adoption of digital financial models. Fintech has transformed every aspect of the conventional banking system,
including paperless lending, mobile banking, digital payments, mobile wallets, insurance, loans and more.
The development and use of financial technology has transformed the banking and financial services industry
in many ways. The diversity and breadth of fintech applications available today enable individuals to create a
culture of banking and investment and a cashless society through digital payments. Fintech has the potential to
revolutionize the financial industry by leveraging technology, enhancing merchant-consumer relationships and
addressing the issue of financial inclusion. Blockchain, AI, machine learning and many other cutting-edge
technologies will benefit emerging markets like India.
VII. REFERENCES
[1] Arslanian, H., & Fischer, F. (2019). The future of finance: The impact of FinTech, AI, and crypto on
financial services.
[2] Gomber, P., Kauffman, R. J., Parker, C., & Weber, B. W. (2018). On the fintech revolution: Interpreting
the forces of innovation, disruption, and transformation in financial services.
[3] Chen, X., You, X., & Chang, V. (2021). FinTech and commercial banks' performance in China: A leap
forward or survival of the fittest?
[4] Gupta, S., & Yadav, A. (2017). The impact of electronic banking and information technology on the
employees of the banking sector.
[5] Kang, J. (2018) Mobile payment in Fintech environment: trends, security challenges, and services.
[6] Gurung, S. (2018). FinTech: A Messiah for the ailing Banking Industry in India.
[7] Dubey, V. (2019). FinTech Innovations in Digital Banking.
[8] Vijai, R. (2021). The Revolutionized Finance Sector.
[9] Kumar. (2021). Impact of Fintech on the Profitability of Public and Private Banks In India.
[10] Anusha, P. (2019). Fintech issues and challenges in India.
[11] Rega, F.G.(2018): The bank of the future, the future of banking—an empirical analysis of European
banks.
[12] Arner, D. W., Barberis, J., & Buckley, R. P. (2016). The evolution of FinTech: A new post-crisis paradigm?
[13] Gopalan, S., Jain, G., Kalani, G., & Tan, J. (2012). Breakthrough IT banking.
[14] Lee, I., & Shin, Y. J. (2018). Fintech: Ecosystem, business models, investment decisions, and challenges
[15] Frame, W. S., Wall, L. D., & White, L. J. (2019). Technological change and financial innovation in banking:
Some implications for fintech.
[Link] @International Research Journal of Modernization in Engineering, Technology and Science
[409]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:04/April-2023 Impact Factor- 7.868 [Link]
[16] Goldstein, I., Jiang, W., & Karolyi, G. A. (2019). To FinTech and beyond.
[17] Guild, J. (2017). Fintech and the Future of Finance.
[18] Thakor, A. V. (2020). Fintech and banking: What do we know?
[19] Chen, M. A., Wu, Q., & Yang, B. (2019). How valuable is FinTech innovation?
[20] Buttice, C. (2020, June 23). Top 12 AI Use Cases: Artificial Intelligence in FinTech.
[21] Jacob, C. (2020, February 25). Blockchain In Fintech - Technology - India.
[22] Kavuri, A. S., & Milne, A. (2018, August 07). Fintech and the Future of Financial Services: What are the
Research Gaps?
[23] Ray, T. (2020, June 09). Scopes and Impact of Cloud Computing on Banking & FinTech.
[24] Shrivastava, D. (2020, September 23). Fintech Industry in India: History, Growth, And Future of Fintech
In India.
[25] Srivastav, S. (2020, November 12). Blockchain in Fintech: A Catalyst for Disruption in Finance.
[26] Berger, Allen, “The Economic Effects of Technological Progress: Evidence from the Banking Industry”.
[27] Anand, V., & Bhatia, P. (2017). FinTech in India: Ready for the breakout.
[28] Gupta, S. and Verma, R. (2008, May), Changing Paradigm in Indian Banking.
[29] Leong, K., & Sung, A. (2018, April). FinTech (Financial Technology): What is It and How to Use
Technologies to Create Business Value in Fintech Way?
[30] Tafti, Z., Jariwala, D., Jain, A., & Gupta, S. (2020). Impact of the COVID-19 outbreak on digital payments.

[Link] @International Research Journal of Modernization in Engineering, Technology and Science

[410]