Shikshan Sanshodhan : Journal of Arts, Humanities and Social Sciences

Financial technology (FinTech) has evolved from a specialised financial innovation into a significant component of the digital economy. Mobile connectivity, cloud systems, data analytics, artificial intelligence, application programming interfaces and digital public infrastructure have changed the way financial services are produced and delivered. This paper examines the economic role of FinTech with particular reference to India. It argues that digital finance can reduce transaction and information costs, accelerate payments, widen access to formal finance and create new business models. Its developmental significance is especially visible where households and small enterprises face barriers of distance, cost or limited financial histories. India provides an important case because public digital infrastructure has created a scalable foundation for private and institutional innovation. At the same time, technological access does not automatically guarantee inclusive outcomes. Cyber fraud, privacy risks, opaque algorithms, irresponsible lending, digital exclusion and market concentration require continuing policy attention. The paper therefore advocates a framework combining innovation with accountability, interoperability with competition, and digital access with user capability. It concludes that the durable contribution of FinTech will depend on whether it can deliver trusted, affordable and productive financial services rather than merely increase the volume of digital transactions.

Financial technology (FinTech) has evolved from a specialised financial innovation into a significant component of the digital economy. Mobile connectivity, cloud systems, data analytics, artificial intelligence, application programming interfaces and digital public infrastructure have changed the way financial services are produced and delivered. This paper examines the economic role of FinTech with particular reference to India. It argues that digital finance can reduce transaction and information costs, accelerate payments, widen access to formal finance and create new business models. Its developmental significance is especially visible where households and small enterprises face barriers of distance, cost or limited financial histories. India provides an important case because public digital infrastructure has created a scalable foundation for private and institutional innovation. At the same time, technological access does not automatically guarantee inclusive outcomes. Cyber fraud, privacy risks, opaque algorithms, irresponsible lending, digital exclusion and market concentration require continuing policy attention. The paper therefore advocates a framework combining innovation with accountability, interoperability with competition, and digital access with user capability. It concludes that the durable contribution of FinTech will depend on whether it can deliver trusted, affordable and productive financial services rather than merely increase the volume of digital transactions.