DRIVERS BEHIND THE RISE OF FINTECHS, BENEFITS AND CHALLENGES FACED - A STUDY WITH REFERENCE TO BENGALURU FINTECHS

Abstract

Purpose: The development of digital transformation in India has paved the way for the emergence fintech (financial technology) initiatives which has been accepted as the most innovation in the financial industry. Benglauru fintech ecosystem is thriving with start-ups leveraging cutting edge technology to transform traditional service. But Bengaluru fintech industry presently facing unique challenges and opportunities that are not fully understood. The cardinal intention of the presented research paper is to study how far the demographics impact on the study. Further the study also concentrates on drivers behind the rise of fintech start-ups in Bengaluru, benefits derived and challenges faced by fintechs at Bengaluru.

Methodology/Design: A structured questionnaire was well administered for the purpose of data collection. The questions were in the nature of open and end type and as per the study objectives only the questions were framed. x², contingency coefficient, Kendal's coefficient of concordance, Extent of Challenges Faced Index (ECFI) and Likert scale was performed to place the opinions of respondents in 3-point scale with concerned weights, 3, 2 & 1.

Findings: The study reveals that all the demographics are positively impacting on the study with significant variation in the data and with highest relationship between the related two variables. Further, the study found that factors like advance in technology, mobile and internet penetration, favourable demographics are the drivers of rise in fintech startups at Bengaluru. Further, the study found challenges faced by fintechs at Bengaluru which includes poor internet connectivity, cyber threats and lack of financial literacy knowledge, and the study also found benefits of fintech like more speed of service, higher personalisation and decreased credit sales.