FINTECH

ZAIN ANSARI
MGW6212000
INTRODUCTION
• Fintech (Financial Technology) is the concept of utilization of technology to deliver financial
services digitally
• Specialized softwares, algorithms and smart devices are utilized to efficiently deliver financial
services and thus reducing human interaction eliminating associated shortcomings.
• Technologies involved in Fintech are :
 Aritificial Intelligence (AI)
 Machine learning (ML)
 Big data Analytics
 Blockchain
 Cloud and quantum computing
 Application Programming interface (API)
 Robotic Process Automation (RPA)
 Augmented reality (AR)
DIGITAL PAYMENT
WHAT IS DIGITAL PAYMENT ?
• Digital payment is the method of payment for goods and services by digital means without using cash.
• E.g. Debit card, credit card, e- checks, internet banking, mobile wallet, Unified Payments Interface(UPI),etc.
HOW DOES DIGITAL PAYMENT WORK ?
• The customer selects a good it wants to purchase and clicks on Buy button and enters card details or online banking
details.
• Data entered by customer is encrypted and is redirected to merchant and then to payment processor via payment
gateway.
• Payment processor then forwards the data to the issuing bank.
• The issuing bank then confirms card details and performs fraud check. It also checks customer bank balance or its credit
details for funds. If everything is OK, then the issuing bank sends confirmation to payment processor.
• The payment processor then sends confirmation to merchant via payment gateway.
• The issuers bank then transfers the order amount to merchants bank and deduct the same amount from customers bank
account or raise a credit.
• The merchants bank then transfers the funds to merchants bank account.
• The merchant and customer get notification that transaction is successful.
DIGITAL PAYMENT…. continued
STAKEHOLDERS IN DIGITAL PAYMENT AND THEI ROLES:
• The stakeholders involved are: customer, merchant, bank, payment gateway, payment
processor.
• Customer : Customer is the one who buys a good or service and he/she will use the
digital payment network to make payments.
• Merchant : Merchant is the one who sells goods and services and he/she will be paid for
it.
• Bank : The merchant’s bank pays the merchant after it receives funds from customer’s
issuing bank . The customer’s bank gets its money either from the customer’s deposited
money or extends a line of credit.
• Payment Gateway : They transit transaction information to payment processors and
merchants bank.
• Payment Processor: They handle transactions for merchant and communicate between
customer and banks.
ARTIFICIAL INTELLIGENCE (AI) IN FINTECH
• AI based bots can act as financial advisor to the customers for best
financial investment plans
• AI based bots can help profiling customers based on the risk and thus
can used to initiate recovery process
• AI based bot can asses customers credit and investment data and
thus draft a most suited offer for loans and investments
• AI based bots can be used to process customer request for insurance
claims
• AI bots act as service provider and help solve customer query in an
efficient manner
DATA ANALYTICS IN FINTECH
• Data analytics is used to collect comprehensive customer data and
behavior trend and thus provides hints on the kind of product to be
promoted to those people
• Data analytics of stock market behavior and trade practices can help chalk
out best trading options
• Data Analytics helps preventing frauds by analyzing customer’s past
transaction history and identifying warning signs
• Data analytics helps in recruitment process by screening out unfavorable
resumes
• Data analytics helps ensure compliance to organizational, regulatory and
statutory requirements.
BLOCKCHAIN IN FINTECH
• Blockchain technology is used for secure payments and transactions and it
also speeds up cross border payments
• Blockchain helps improve up trading process by eliminating intermediaries
and thus helps speed up transaction and settlement process
• Blockchain helps ensuring compliance to statutory and regulatory
requirements as data stored on blockchain are secure and cannot be
change without authorization
• Blockchain helps prevent fraud as customer data is safely stored in block
chain and is shared with only authorized entities
• Block chain helps maintain smart contract wherein terms of agreement are
written on the computer code instead of maintaining physical records
leading to inefficiencies.
THANK YOU