India has seen a lot of changes in the past few years. Closing in on the financial arena, the government has introduced changes after changes with demonetization and the GST reforms. To gear up for these changes, Fintech is an idea worth exploring. FinTech is the innovative use of technology in banking and financial services. It’s first recorded use was way back when in the 1980’s by Peter Knight, the editor of a business newsletter in the Sunday Times. He used it to describe a bot which had altered his mailbox. The phrase was commonplace in specialist financial magazines and newspapers. However, it wasn’t until the 2007 financial crash when ‘fintech’ became a common term outside of the finance world. This was due to various venture capitalist…show more content… Data sources and industry watchers estimate that Asia has approximately 2,500 fintech start-ups while the U.K. and the U.S. have a combined total of 4,000. The major reason for the boom has to do with the 2008 credit crisis. Since then, banks have been slapped with several new regulations and dealt heavy fines and penalties for non-compliance. Front-office, client focused talent pools, once happily employed and generously paid by banks are moving into the technology and start-up arena. Fintech start-ups have been able to create business models which avoid the structural formalities of being a bank, while providing a more efficient means of serving customer needs. For example, marketplace lending, with players such as Lending Club and Prosper in the U.S., represent a fintech category where the lack of capital stringent capital requirements on newer players has provided far better returns for these new upstarts compared to traditional…show more content… A number of financial organizations are including technology startups in their partnership/vendor strategies. For example, MasterCard Worldwide is evolving from a marketing/branding company to a high-tech organization. The MasterCard StartPath ™ Program demonstrates their commitment to innovation through partnerships with early stage startups to accelerate the future of eCommerce. The program continues to team the needs of startups with MasterCard to develop new products and solutions.
Citigroup recently launched a program in which a select group of FinTech startups compete to develop a specific product for the prize of becoming a Citigroup vendor. These types of programs targeting startups have become common among large organizations seeking to outsource technology and create product