Technology Transforming the World of Finance

Technology Transforming the World of Finance

A Changing Behavior

When did you last visit a Fintech has quietly redefined our
bank branch? everyday financial experiences
 Technology Transforming the World of Finance

Fintech’s Early Days

• Late 2000s: Fintech was a niche

space

• Dominated by small startups, slow

innovation, and heavy regulations
Fintech Today

• Now a global force shaping the

economy

• Billion-dollar companies and

breakthrough technologies

Source: Raconteur
 Technology Transforming the World of Finance

What Fintech Means

• Financial technology that designs,

delivers, and improves financial services
and products

• Innovation- Focused on speed, cost, access, and

security
Technology Transforming the World of Finance
Buy Now Pay Later

PayPal, Venmo,
Klarna or Affirm
UPI

Neobanks Betterment or Lemonade

Wealthfront
 Technology Transforming the World of Finance

Helping farmers in
Investing via smartphone
Kenya get paid via
in the U.S
mobile

Instant checkout credit

in Germany
 Technology Transforming the World of Finance
Value and number of investments in fintech worldwide from 2010 to 2024
Investment activity in fintech worldwide 2010-2024
Value of investments (in billion U.S. dollars) Number of investments

300 9000

8000
Value of investments in billion U.S. dollars

250
7000

Number of investments
200 6000

5000
150
4000

100 3000

2000
50
1000

0 0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source(s): KPMG; PitchBook

 Technology Transforming the World of Finance

Value of investment in fintech worldwide from 2014 to 2024, by selected segments (in billion U.S. dollars)

Payments Insurtech Regtech Cybersecurity Wealthtech Digital assets and currencies

120
Value of investment in billion U.S. dollars

100

80

60

40

20

0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Source(s): KPMG; PitchBook
 Technology Transforming the World of Finance

Number of fintechs worldwide from 2008 to 2024, by region

North America Europe Asia-Pacific Latin America Middle East and North Africa

35,000

30,000

25,000
Number of fintechs

20,000

15,000

10,000

5,000

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source(s): CrunchBase; Statista

 Technology Transforming the World of Finance

Most prominent FinTech players can be found in Digital Payments

Sources: AgileIntel Research

 Technology Transforming the World of Finance

Marketplace lending is gaining momentum

Sources: AgileIntel Research

 Technology Transforming the World of Finance

Neobanks are growing at a rapid pace

Sources: AgileIntel Research

 Technology Transforming the World of Finance

List of selected female-founded FinTech startups

Sources: Crunchbase; FT Partners

 Technology Transforming the World of Finance

List of selected female-founded FinTech startups

Sources: Crunchbase; FT Partners

 Technology Transforming the World of Finance

Fintech + Banks: The Future is Collaborative

Fintech innovation is no longer about replacing banks — it’s about redefining

finance together

• Coexistence over Competition

• How Banks Are Responding

• Acquiring fintech companies
• Investing in fintech startups
• Partnering with tech firms
 The Key Pillars of Fintech Innovation

Digital Payments

• Replace cash, checks, and bank visits with instant digital tools

Pillar 1 • Accessible via mobile phones, smartwatches, and voice assistants

• Enable cashless instant transactions for goods, services, and salaries

Digital Types of Digital Payment Transactions

Payments What’s Not Included
Mobile POS B2B payments, mPOS dongles
Digital Commerce Digital Remittances
Payments (card readers), eBanking
Online shopping Cross-border transfers transfers, Social media
In-store smartphone payments, Domestic bill-
transactions Via cards, by migrants
app payments splitting, Remittances via
direct debit, invoices, Internet-based, fast
PayPal, Alipay Contactless via Apple and low-cost banks, post offices, or agents
Pay, Samsung Pay
 The Key Pillars of Fintech Innovation

Digital Payments

Pillar 1
Over 400M
Everyday 11B+ monthly
users; $1T+
utility in transactions
in payment Tap-and-go China
volume in the US
Digital
Payments and Europe
Number of fintech users worldwide from 2017 to 2024, with a forecast until 2029, by segment (in
billions)
Digital payments Digital assets Digital investment Digital banking

5.0

4.5

4.0

3.5
Users in billions

3.0

2.5

2.0

1.5

1.0

0.5

0.0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Description: The digital payments segment dominates the fintech market in terms of user base. As of 2024, it boasted over three billion users and is projected to reach 4.45 billion by 2029. Other segments trail significantly behind: digital assets with 860 million users,
digital investment with 590 million users, and digital banking with 300 million users. According to Statista Market Insights, while all segments are expected to grow their user base in the coming years, digital payments will maintain its [...] Read more
Note(s): Worldwide; 2017 to 2024; data shown is using current exchange rates and reflects market impacts of the Russia-Ukraine war
Source(s): Statista; Statista Market Insights
Total number of cashless transactions worldwide - including B2C and B2B - from 2014 to 2023, with
forecasts for 2024 and 2028, by region (in billions)
Asia-Pacific (APAC) Europe North America Latin America Middle East, Africa (MEA)

3,000

2,500
Number of transactions in billions

2,000

1,500

1,000

500

0
2018 2021 2022 2023 2024 2028
Description: The number of cashless payments in Asia-Pacific is forecast to be higher than transactions in Europe and North America combined. This is according to research from Capgemini Research Institute for Financial Services Analysis. In 2023 - the most recent
year estimated by the source - 645.8 billion non-cash transactions were carried out in Asia-Pacific. Europe and North America followed, with 361.1 and 237.3 billion transactions respectively. From 2024 onwards - which are all forecasts - the [...] Read more
Note(s): Worldwide; October 2024
Source(s): Bank for International Settlements; Capgemini; ECB
Market share of digital/mobile wallets in total e-commerce and POS transaction value worldwide in
2024 with a forecast for 2030, by region

Worldwide Asia Pacific North America Europe Middle East & Africa Latin America

90%
80%
80%
74%

70%
Share of total transaction value

65% 65%

60%
53% 54%
52%
50% 46% 45%
39% 39%
40% 35%
33% 32%
29% 29%
30% 27% 27%
22% 23%
21%
20% 16%
14% 13%
10%

0%
2024 - E-commerce 2024 - POS 2030 - E-commerce 2030 - POS

Description: Digital wallets were significantly more used in Asia-Pacific than in other parts of the world in 2024. Wallets accounted for almost 75 percent of e-commerce payments in the region, more than roughly 50 percent in both Latin America and MEA. Wallets
accounted for more than half of global e-commerce payment transactions, which will increase to 65 percent in 2030. Read more
Note(s): Worldwide; 2024
Source(s): GlobalData; IMF; McKinsey & Company; World Bank; Worldpay
 The Key Pillars of Fintech Innovation

Digital Payments

Real-Time and Cross-Border Payments

Pillar 1

Digital
Payments

Speed, cost efficiency, and transparency redefining global commerce

 The Key Pillars of Fintech Innovation

Digital Payments

Cardless & Biometric Payments

Pillar 1
• QR codes, biometrics, and wearables replacing plastic cards

• In China, QR and facial recognition are mainstream

Digital
Payments
• Frictionless payments improving user experience
 The Key Pillars of Fintech Innovation

Digital Payments

Rise of Payment Orchestration

Pillar 1
• Merchants connect to multiple payment systems via one platform

• Boosts conversions, supports global expansion, reduces failures

Digital
Payments • Handles fraud detection, currency conversion, compliance in
background
 The Key Pillars of Fintech Innovation

Digital Payments

Stakeholder Benefits
Pillar 1

Digital
Payments

Consumers Merchants Governments

Speed Broad Reach Financial Inclusion

Convenience Higher Loyalty Reduced Shadow Economy
Lower Costs Smoother Ops Better Benefits Delivery
 The Key Pillars of Fintech Innovation

Pillar 1 Pillar 2

Digital Digital
Payments Lending &
Credit
 The Key Pillars of Fintech Innovation

Digital Lending & Credit

Traditional Loan Process

Pillar 2

Digital
Lending &
Credit
 The Key Pillars of Fintech Innovation

Digital Lending & Credit

Pillar 2

Digital
Lending &
Credit
 The Key Pillars of Fintech Innovation

Digital Lending & Credit

Transparent BNPL with low/no interest

Alternative credit scoring models

Pillar 2
• Goes beyond credit scores
• Uses:

Digital
Lending &
Credit

• Expands access to gig workers, youth, and informal sector

LazyPay: Instant
app-based loans Data-driven SME loans
Cred: Lending
based on credit
behavior
 The Key Pillars of Fintech Innovation

Digital Lending & Credit

UPI-linked lending Blockchain-Based Lending Decentralized Finance (DeFi)
Microloans with instant Tamper-proof, automated No banks, no paperwork
Pillar 2 disbursal/repayment contracts Lending via smart contracts
Ideal for cross-border (e.g., Aave, Compound, MakerDAO)
lending Fully transparent and blockchain-
governed
Digital
Lending &
Credit
 The Key Pillars of Fintech Innovation

Digital Lending & Credit

Stakeholder Benefits
Pillar 2

Digital
Lending &
Credit
Financial Systems
Consumers Small Underserved
Businesses Populations
Banks pressured to evolve
New models driving
Smoother cash Faster capital Formal financial
regulatory reform
flow, better for growth and inclusion through
Credit becomes fairer,
credit access expansion mobile-first
faster, and more inclusive
lending
 The Key Pillars of Fintech Innovation

Pillar 1 Pillar 2 Pillar 3

Digital Digital Digital

Payments Lending & Assets and
Credit Blockchain
 The Key Pillars of Fintech Innovation

Digital Assets and Blockchain Technologies

What is Blockchain?

• A type of Distributed Ledger Technology (DLT)

Pillar 3 • Secure, transparent, and decentralized record-keeping
• No need for a central authority

What Are Digital Assets?

Digital
Assets and • Include cryptocurrencies (e.g., Bitcoin, Ethereum)
Blockchain
• Also includes stablecoins, tokenized assets, and CBDCs
• All built on blockchain infrastructure

Why It Matters

• Transforming payments, lending, asset management, and more

• Enables secure, fast cross-border transactions
• Powers decentralized financial systems
 The Key Pillars of Fintech Innovation

Pillar 1 Pillar 2 Pillar 3 Pillar 4

Digital Digital Digital WealthTech

Payments Lending & Assets and
Credit Blockchain
 The Key Pillars of Fintech Innovation

WealthTech: Democratizing Investing and Redefining Financial Planning

• WealthTech is redefining how people invest and plan financially

Pillar 4 • Traditionally accessible only to the wealthy, now democratized
through fintech
• Everyday individuals can now access sophisticated financial tools

WealthTech
The Rise of Robo-Advisors

• Robo-advisors like Betterment, Wealthfront, Scalable Capital use AI

to build portfolios
• Users answer questions on goals, risk, and timelines
• Platforms offer auto-rebalancing and tax-efficient investing with
minimal fees
 The Key Pillars of Fintech Innovation

WealthTech: Democratizing Investing and Redefining Financial Planning

Making Investing More Inclusive

Pillar 4
• Robo-advisors remove entry barriers (Betterment: $0, Wealthfront: $500)
• Ideal for beginners with limited capital
• Automated, emotion-free investing encourages long-term discipline
WealthTech
Growth of Neobrokers

• Neobrokers like Robinhood (US) and Groww (India) make investing app-
based
• Trade stocks, ETFs, crypto in a few taps
• Gamification makes investing more engaging and less intimidating
• Raises awareness around regulation and responsible investing
 The Key Pillars of Fintech Innovation

WealthTech: Democratizing Investing and Redefining Financial Planning

Enabling Fractional Investing

Pillar 4
• Platforms allow buying part of a stock, not just full shares
• Users can invest in Amazon or Tesla with as little as $10
• Makes high-value assets accessible to small investors
WealthTech
ESG Investing via WealthTech

• Align investments with values: sustainability, ethics, governance

• Betterment offers climate-focused portfolios
• Wealthfront supports socially responsible investing
• Combines financial returns with personal impact
 The Key Pillars of Fintech Innovation

WealthTech: Democratizing Investing and Redefining Financial Planning

The Tech Behind the Experience

Pillar 4
• Platforms use data analytics, real-time market feeds, and risk modeling
• Machine learning refines advice over time
• Users enjoy a clean, guided experience while complex systems run in the
WealthTech background

Transformative Customer Impact

• Empowers users regardless of income or financial literacy

• Transparent fees and easy-to-use tools build trust
• Enhances financial literacy and long-term wealth building, especially for
Gen Z and millennials
 The Key Pillars of Fintech Innovation

WealthTech: Democratizing Investing and Redefining Financial Planning

Disrupting the Industry

Pillar 4
• Competition drives innovation in user experience and affordability
• Traditional players adapting with digital platforms or fintech partnerships
• Regulators stepping in to ensure safety and fairness in digital investing
WealthTech
 The Key Pillars of Fintech Innovation

Pillar 1 Pillar 2 Pillar 3 Pillar 4 Pillar 5

Digital Digital Digital WealthTech RegTech

Payments Lending & Assets and
Credit Blockchain
 The Key Pillars of Fintech Innovation

RegTech: Transforming Compliance and Risk Management in Financial Services

What is RegTech?
Pillar 5
• RegTech = Regulatory Technology
• Helps financial institutions manage compliance and risk
efficiently
RegTech • Automates tasks tied to KYC, AML, fraud detection, and
regulatory reporting

The Compliance Challenge

• Financial regulations are increasingly complex

• Manual compliance is time-consuming, costly, and error-
prone
• Small failures can lead to major fines and reputational
damage
 The Key Pillars of Fintech Innovation

RegTech: Transforming Compliance and Risk Management in Financial Services

RegTech’s Digital Advantage

Pillar 5
• Automates compliance workflows
• Reduces costs, increases speed, and improves reliability
• Enhances trust and transparency
RegTech

KYC Transformation

• Traditional KYC: physical documents, long wait times

• RegTech KYC: instant digital verification using facial
recognition & document scans
• Examples: Onfido, Jumio
 The Key Pillars of Fintech Innovation

RegTech: Transforming Compliance and Risk Management in Financial Services

Smarter AML with Real-Time Monitoring

Pillar 5
• Real-time transaction scanning and threat detection
• Examples: ComplyAdvantage, Fenergo
• Alerts compliance teams to suspicious activities
RegTech

Automating Regulatory Reporting

• Replaces manual reports with auto-generated filings

• Pulls data directly from internal systems
• Improves accuracy, timeliness, and reduces burden on
teams
 The Key Pillars of Fintech Innovation

RegTech: Transforming Compliance and Risk Management in Financial Services

Why RegTech Attracts Investment

Pillar 5
• Rising demand despite market
slowdowns (e.g., 2024)
• Helps firms meet growing regulatory
RegTech pressure cost-effectively
• Seen as essential for financial system
stability

Source: Worldwide; PitchBook; KPMG; 2010 to 2024

 The Key Pillars of Fintech Innovation

RegTech: Transforming Compliance and Risk Management in Financial Services

Tech Power Behind RegTech

Pillar 5
• Robotic Process Automation (RPA): automates repetitive
tasks like data entry and verification
• Explainable AI (XAI): provides transparency in AI-driven
RegTech decisions — critical for audits and compliance
• Enables smarter, explainable, and auditable automation

Impact of RegTech

• For financial institutions: Lower risk, lower cost, faster

compliance
• For regulators: Improved oversight and systemic trust
• For customers: Faster, smoother onboarding and
transactions
 The Key Pillars of Fintech Innovation

RegTech: Transforming Compliance and Risk Management in Financial Services

Real-World Examples
Pillar 5 • EU: Digital reporting cut submission time from weeks to
days

• India: RBI promotes RegTech to fight fraud and boost

RegTech financial inclusion in digital lending
 The Key Pillars of Fintech Innovation

Pillar 1 Pillar 2 Pillar 3 Pillar 4 Pillar 5 Pillar

6

Digital Digital Digital WealthTech RegTech InsurTech

Payments Lending & Assets and
Credit Blockchain
 The Key Pillars of Fintech Innovation

InsurTech: Reinventing Insurance Through Technology and Innovation

What is InsurTech?
Pillar • Tech-driven innovation transforming the insurance industry
6 • Replaces paperwork and long claim cycles with smart, real-time
processes
• Makes insurance more efficient, personalized, and user-friendly
InsurTech

AI-Powered Automation

• AI used to underwrite policies and process claims instantly

• Example: Lemonade uses chatbots for seamless, fast claims
• Enhances speed, reduces cost, and improves customer
satisfaction
 The Key Pillars of Fintech Innovation

InsurTech: Reinventing Insurance Through Technology and Innovation

Usage-Based Insurance (UBI)

Pillar • Pricing based on real-time behavior data, not demographics
6 • Auto insurers like Root (US) and Acko (India) use driving
behavior to calculate premiums
• Safer behavior = lower costs for users
InsurTech

Embedded Insurance

• Insurance offered at checkout during purchases

(e.g., flights, phones)
• Integrated into e-commerce and digital platforms
• Increases convenience and improves conversion
• Examples: Cover Genius, BIMA
Uno: Embedded insurance
platform of BIMA
 The Key Pillars of Fintech Innovation

InsurTech: Reinventing Insurance Through Technology and Innovation

Advanced Risk Assessment with AI

Pillar • Machine learning detects fraud, flags risky claims
6 • Improves accuracy, reduces fraud and overbilling
• Predictive analytics enables proactive customer care
InsurTech

IoT and Real-Time Data

• Smart home devices, fitness wearables, and connected

cars feed insurers live data
• Enables dynamic pricing, rewards good behavior
• Example: discounts for leak sensors or fitness
achievements
 The Key Pillars of Fintech Innovation

InsurTech: Reinventing Insurance Through Technology and Innovation

Customer Impact
Pillar • Faster access to insurance with minimal paperwork
6 • Quicker claim settlements
• Personalized, transparent, and flexible insurance products
• More relevant to modern lifestyles
InsurTech

Industry Disruption

• Forces traditional insurers to modernize

• Sparks partnerships between tech startups and insurers
• Regulators adapting to balance innovation and consumer
protection
 The Key Pillars of Fintech Innovation

Pillar 1 Pillar 2 Pillar 3 Pillar 4 Pillar 5 Pillar 6 Pillar 7

Digital Digital Digital WealthTech RegTech InsurTech Embedded

Payments Lending & Assets and Finance
Credit Blockchain
 The Key Pillars of Fintech Innovation

Embedded Finance: Integrating Financial Services Into Everyday Life

Embedded Finance
Pillar 7 • Integration of financial services into non-financial platforms

• Allows apps (e.g., e-commerce, ride-sharing, travel) to offer

payments, credit, insurance, and more
Embedded
Finance
• Seamless, in-app access to financial tools without switching
platforms
 The Key Pillars of Fintech Innovation

Embedded Finance: Integrating Financial Services Into Everyday Life

Embedded Finance
Pillar 7

Embedded
Finance
 The Key Pillars of Fintech Innovation

Embedded Finance: Integrating Financial Services Into Everyday Life

Changing the Distribution Model

Pillar 7 • Traditional: Visit a bank or insurer for services
• Embedded: Financial products appear right when needed
• Frictionless, context-aware, and often invisible to the user
Embedded
Finance
Customer Benefits

• Convenience: No need to visit banks or download extra apps

• Speed: Instant approvals and embedded claims/payouts
• Personalization: Relevant products offered in real time
 The Key Pillars of Fintech Innovation

Embedded Finance: Integrating Financial Services Into Everyday Life

Business Impact
Pillar 7 • New revenue streams through financial services
• Improved conversion rates and customer loyalty
• Example: Shopify offers embedded payments and
business loans
Embedded
Finance
Tech Behind the Scenes

• Powered by APIs – modular and plug-and-play financial

integration
• Enables even non-financial firms to offer fintech
products quickly
• Reduces technical complexity and speeds up go-to-
market
 The Key Pillars of Fintech Innovation

Embedded Finance: Integrating Financial Services Into Everyday Life

Expanding Into New Sectors

Pillar 7
Healthcare
Embedded medical
payment plans
Embedded
Finance

Social Media
Real Estate Embedded tipping and
Security deposit insurance creator payments
in rental platforms
 The Key Pillars of Fintech Innovation

Embedded Finance: Integrating Financial Services Into Everyday Life

Embedded finance can unlock an opportunity bigger than the current value of all fintech
startups and the top global banks and insurers, combined
Pillar 7

Embedded
Finance
 The Key Pillars of Fintech Innovation

Pillar 1 Pillar 2 Pillar 3 Pillar 4 Pillar 5 Pillar 6 Pillar 7 Pillar 8

Digital Digital Digital WealthTech RegTech InsurTech Embedded Neo

Payments Lending & Assets and Finance Banking
Credit Blockchain
 The Key Pillars of Fintech Innovation

Neobanking: Redefining Banking for the Digital-First Generation

What is Neobanking?

Pillar 8 • Digital-only banks with no physical branches

• Fully online account opening via smartphone
• Fast, paperless, and accessible banking experience

Neo
Banking
Key Features of Neobanks

• Zero/minimal fees, instant money transfers

• In-app budgeting, savings goals, expense tracking
• Early paycheck access, fee-free ATMs, crypto options
 The Key Pillars of Fintech Innovation

Neobanking: Redefining Banking for the Digital-First Generation

Designed for the Digital Generation

Pillar 8 • Popular with Millennials and Gen Z

• Mobile-first experience is an expectation, not a bonus
• Banking integrated into daily digital lifestyles

Neo Global Leaders in Neobanking

Banking

Multicurrency, crypto, global

accounts
Early deposits, no
overdraft fees

Financial inclusion
for millions
 The Key Pillars of Fintech Innovation

Neobanking: Redefining Banking for the Digital-First Generation

Explosive Market Growth Transaction value in the global neobanking market, from 2018 to 2028
(in trillion U.S. dollars)
Pillar 8 • Global neobank transactions:
$230B in 2017 → $10.4T by 2028
• 41.5% CAGR — among the fastest-growing
sectors
Neo • Top markets: USA, UK, Brazil, France,
Banking Russia
Financial Inclusion in Emerging Markets

• Rapid growth in Nigeria, Ukraine,

Bangladesh, Uruguay, Morocco
• Serving the previously unbanked
• Easy access to savings, loans, and payments
via mobile Source: Statista Market Insights
 The Key Pillars of Fintech Innovation

Neobanking: Redefining Banking for the Digital-First Generation

Why Neobanks Matter

Pillar 8 • Rethinking banking from the ground up

• Customer-first design and intuitive user experience
• Forcing traditional banks to modernize and compete
• Enabling a more inclusive and digital future for finance
Neo
Banking
Emerging Technologies Powering the Future of
Fintech

Blockchain and Distributed Ledger Technology

• Everyone has access to the same version

• No one can secretly change what's written
• Acts as a distributed, tamper-proof ledger
 Blockchain and Distributed Ledger Technology

Step 3: Verification (Validation)

Step 2: Broadcast
Is the sender authorized?
Step 1: Transaction to Network Do they have sufficient funds?
Initiation Is the digital signature valid?
Only valid transactions are approved

Step 4: Block Creation

Verified transactions are grouped
into a block, ready to be shared
with the network

Step 5: Block Broadcast and

Consensus
The block is shared, and nodes
reach consensus to approve it

Step 7: Transaction Complete Step 6: Ledger Update

transaction is now final, Block is added to the blockchain, all
irreversible, and permanently nodes update their ledger with new
recorded on the blockchain block to complete the transaction
Blockchain and Distributed Ledger Technology

Decentralized: Data is spread across

multiple computers (nodes), not controlled
by one entity

Transparent: Everyone can see the full

transaction history

Immutable: Records cannot be changed or

deleted once added

Secure: Protected by cryptography and

network consensus
 Blockchain and Distributed Ledger Technology

Centralized Ledger Distributed Ledger

• Blockchain is a special type of

database distributed across many
systems (nodes) globally –Distributed
Ledger

• No central authority or bank controls

the data

• Transactions are securely verified

and stored in a tamper-proof way
Blockchain and Distributed Ledger Technology

Step 3: Verification (Validation)

Is the sender authorized?
Do they have sufficient funds?
Is the digital signature valid?
Blockchain and Distributed Ledger Technology

Block contains:
• Set of transactions
• Timestamp
• Hash of the previous block
Blockchain and Distributed Ledger Technology

Distributed Ledger Technology

Blockchain Directed Acyclic Graph Hash Graph

(DAG)

Corda
 Blockchain and Distributed Ledger Technology

Number of cryptocurrencies worldwide from 2013 to March 2025

12,000
Blockchain Challenges and Limitations 10,567
9,929 10,025 9,935
10,000 9,310 9,321 9,024

Cryptocurrency number
8,000
6,826
6,044
6,000

4,000
2,817

2,000 1,335
562
66
0

Aug 2021

Aug 2023

Aug 2024
Jan 2022

Jan 2024
2016

Jan 2025
Feb 2021
Jul 2021

Feb 2022

Feb 2023

Dec 2023

Sep 2024

Dec 2024
2013
2014
2015

2017
Mar 2018

Mar 2025
Oct 2021

Jun 2024
Nov 2019

Nov 2021

Nov 2022

Nov 2024
 Number of cryptocurrency users in millions

0
1,000

100
200
300
400
500
600
700
800
900
2016
2017
2018
Q3 2020
Jan 2021
Feb 2021
Mar 2021
Apr 2021

Source(s): Cambridge Judge Business School; Crypto.com

May 2021
Jun 2021
Dec 2021
Jan 2022
Feb 2022
Mar 2022
Apr 2022
May 2022
Jun 2022
Jul 2022
Aug 2022
Sep 2022
Oct 2022
Nov 2022
Dec 2022
Jan 2023
Feb 2023
Mar 2023
Apr 2023
May 2023
Jun 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024
Nov 2024
Blockchain and Distributed Ledger Technology

2025 (lowest forecast)

2025 (highest forecast)
Number of identity-verified cryptoasset users from 2016 to November 2024, with a forecast for 2025 (in millions)
Blockchain Technology: Applications

Digital Application, stores, receive,

and store cryptocurrencies
Blockchain Technology: Applications
Blockchain Technology: Applications
Blockchain Technology: Applications

Achieving Consensus
Blockchain Technology: Applications

In the block, Verified transaction grouped with

other verified transactions that happened around
the same time. Each Block contains:
• Set of transactions
• Timestamp
• A unique code (hash) linking it to the previous
block
Blockchain Technology: Applications
Blockchain Technology: Applications
 Blockchain Technology: Applications

Traditional Banking Blockchain

No need for
Reconciliation

Permissioned Faster
Blockchain:
only authorized
participants can join
the network
Reduced Costs

Improves
Require Delays Increased Error, Fraud
Accuracy
Reconciliation Costs Risks
&
Intermediaries
(Clearing
houses)
 Blockchain Technology: Applications

Blockchain

Data Access & Privacy

Permissioned
• Every bank holds a copy of the ledger, but doesn’t see all data Blockchain:
• Permissions and encryption ensure privacy only authorized
• Example: Bank Z can’t view Bank X’s customer data unless participants can join
the network
involved

Adding New Participants

• New banks (e.g., Bank Y) need approval to join
• Once added, they can validate and submit transactions
• Access to historical data depends on network rules
 Blockchain Technology: Applications

Key Benefits & Challenges

Benefits uses blockchain for payments & liquidity

• Faster settlements, lower costs, enhanced security

Challenges
• Interoperability with legacy systems RBI pilot – exploring blockchain in
• Governance and decision-making trade finance
• Compliance with legal and regulatory standards
 Key Blockchain Use Cases in Fintech

Digital Payments

• Traditional cross-border payments are slow & costly

• Blockchain enables faster, cheaper transfers
• Example: Ripple – instant international payments used
by global banks

Lending & Borrowing (DeFi)

• No paperwork or banks — just smart contracts

• Borrow/lend directly on platforms like Aave and
Compound
• Billions in crypto loans without intermediaries
 Key Blockchain Use Cases in Fintech

Asset Tokenization

• Turn real-world assets (like real estate) into digital tokens

• Enables fractional ownership and greater market liquidity
• Investing in property becomes as easy as trading stocks

Digital Identity

• Create a blockchain-based digital ID

• Share only what's necessary, keeping personal data secure
• Helps with KYC and fraud prevention in fintech apps
 Key Blockchain Use Cases in Fintech

Regulatory Technology (RegTech)

• Automated compliance and auditing

• Real-time, tamper-proof data reduces fraud and delays
• Saves cost for banks and increases transparency for regulators

Central Bank Digital Currencies (CBDCs)

• Blockchain powers Digital Rupee and other CBDC pilots

• Issued by central banks, functions like digital cash
• More secure, traceable, and efficient than physical currency

Insurance Automation

• Smart contracts automate payouts (e.g., for flight delays)

• No need to file claims manually
• Brings speed, accuracy, and trust to the insurance process
 Smart Contracts and Automation in Finance

What Are Smart Contracts?

• Self-executing programs on the blockchain

• Enforce agreement terms automatically when conditions are met
• No lawyers, paperwork, or middlemen needed
 Smart Contracts and Automation in Finance

Smart Contracts in Finance

 Smart Contracts and Automation in Finance

Lending with Smart Contracts (DeFi)

• Peer-to-peer loans without banks

• Contract locks terms, enforces repayment, and handles defaults

• Example: Used on DeFi platforms like Aave, Compound

 Smart Contracts and Automation in Finance

Insurance Automation using Smart Contracts Insurance Smart

Contract
• Smart contracts can automate claim settlements
• If the flight is delayed, API verifies status, payout is triggered
instantly
• No claims, no waiting

Other Use Cases

• Decentralized exchanges
• Automated market makers (AMMs) No
• Payroll systems in crypto startups
• All reduce costs and eliminate intermediaries
 Smart Contracts and Automation in Finance

Advantages Challenges

• Transparency – anyone can verify the code and • Code bugs can be exploited
execution • Needs external data feeds (oracles), which may be
• Accuracy – runs exactly as written, no manual errors unreliable
• Efficiency – faster processing, lower costs • Legal clarity is still evolving — smart contracts may
not always be enforceable in court

Smart contracts = automation + trust without intermediaries

Transforming financial services with faster, cheaper, and reliable

processes

But require careful design, security, and governance

 Blockchain’s Energy Challenge and the Rise of
Sustainable Consensus Models

• Blockchain’s energy use is a growing concern

 Blockchain’s Energy Challenge and the Rise of
Sustainable Consensus Models

• Focus on two major consensus models: Proof of Work (PoW) and Proof of Stake (PoS)
 Proof of Work

Blockchain systems (e.g., Bitcoin) that use

Proof of Work consume enormous amounts of energy
Proof of Work

Is the transaction
real or fake?

Proof Of Work
 Proof of Work

Validates Shares Blocks &

Stores Full copy Mines New
Type of Node Incoming Transaction
of Blockchain Blocks
Transactions Data

Regular Node

Mining Node

Blockchain -a digital ledger — a long,

continuous record of every
transaction that has ever taken place
on the network
 Proof of Work

Validates Shares Blocks &

Stores Full copy Mines New
Type of Node Incoming Transaction
of Blockchain Blocks
Transactions Data

Regular Node

Mining Node

• Sender has enough balance

• Signature is valid Node accept the
• Funds aren’t double-spent transaction as valid
 Proof of Work

Validates Shares Blocks &

Stores Full copy Mines New
Type of Node Incoming Transaction
of Blockchain Blocks
Transactions Data

Regular Node

Mining Node
 Proof of Work

Validates Shares Blocks &

Stores Full copy Mines New
Type of Node Incoming Transaction
of Blockchain Blocks
Transactions Data

Regular Node

Mining Node
 Proof of Work

Ensures Shares Blocks &

Stores Full copy Validates Mines New
Type of Node Transactions Transaction
of Blockchain Transactions Blocks
Follow Rules Data
Regular Node
Mining Node
 Step 5:
Network Verifies the Block
Hash is correct?
Puzzle was solved properly? Regular Node (Verifier)
All transactions in the block valid and follow the rules?

Step 6:
Block is Added to
Blockchain

Step1.
Collect Valid
Step 3:
Transactions
Solve the Puzzle
(Hashing with Nonce Guessing)
Step 2:
Bundle
Into a Block
Step 4:
First Miner to Solve the Puzzle Step 7:
Broadcasts the Block Miner Gets Reward
 Step 5:
Network Verifies the Block
Hash is correct?
Puzzle was solved properly? Regular Node (Verifier)
All transactions in the block valid and follow the rules?

Step 6:
Block is Added to
Blockchain

Step1.
Collect Valid
Step 3:
Transactions
Solve the Puzzle
(Hashing with Nonce Guessing)
Step 2:
Bundle
Into a Block
Step 4:
First Miner to Solve the Puzzle Step 7:
Broadcasts the Block Miner Gets Reward
 Step 5:
Network Verifies the Block
Hash is correct?
Puzzle was solved properly? Regular Node (Verifier)
All transactions in the block valid and follow the rules?

Step 6:
Block is Added to
Blockchain

Step1.
Collect Valid
Transactions Step 3:
Solve the Puzzle
(Hashing with Nonce Guessing)
Step 2:
Bundle
Into a Block
Step 4:
First Miner to Solve the Puzzle Step 7:
Broadcasts the Block Miner Gets Reward
 Step 5:
Network Verifies the Block
Hash is correct?
Puzzle was solved properly? Regular Node (Verifier)
All transactions in the block valid and follow the rules?

Step 6:
Block is Added to
Blockchain

Step1.
Collect Valid
Step 3:
Transactions
Solve the Puzzle
(Hashing with Nonce Guessing)
Step 2:
Bundle
Into a Block
Step 4:
First Miner to Solve the Puzzle Step 7:
Broadcasts the Block Miner Gets Reward
 Step 5:
Network Verifies the Block
Hash is correct?
Puzzle was solved properly? Regular Node (Verifier)
All transactions in the block valid and follow the rules?

Step 6:
Block is Added to
Blockchain

Step1.
Collect Valid
Step 3:
Transactions
Solve the Puzzle
(Hashing with Nonce Guessing)
Step 2:
Bundle
Into a Block
Step 4:
First Miner to Solve the Puzzle Step 7:
Broadcasts the Block Miner Gets Reward
 Step 5:
Network Verifies the Block
Hash is correct?
Puzzle was solved properly? Regular Node (Verifier)
All transactions in the block valid and follow the rules?

Step 6:
Block is Added to
Blockchain

Step1.
Collect Valid
Step 3:
Transactions
Solve the Puzzle
(Hashing with Nonce Guessing)
Step 2:
Bundle
Into a Block
Step 4:
First Miner to Solve the Puzzle Step 7:
Broadcasts the Block Miner Gets Reward
 Step 5:
Network Verifies the Block
Hash is correct?
Puzzle was solved properly? Regular Node (Verifier)
All transactions in the block valid and follow the rules?

Step 6:
Block is Added to
Blockchain

Step1.
Collect Valid
Step 3:
Transactions
Solve the Puzzle
(Hashing with Nonce Guessing)
Step 2:
Bundle
Into a Block
Step 4:
First Miner to Solve the Puzzle Step 7:
Broadcasts the Block Miner Gets Reward
 Proof of Work (PoW)

Why Proof of Work Requires Effort

Built-in Security: Cheating is too costly and time-consuming

Incentive: First to solve gets Bitcoin + fees

Proof of work: Puzzle proves real work was done

Valid Data Only: Invalid blocks get rejected — no reward
Verified by Network: Other nodes double-check the block
Fairness Ensured: System rewards honesty, rejects fraud
 Proof of Work (PoW)

Alice wants to send Signs Transaction Sends to the Miner validates and
1 Bitcoin to Bob network include in block
(Enough bitcoins
available)

Block is added to the Solves puzzle and

Blockchain Nodes verify broadcasts
Bob receives Bitcoin, and
the miner gets the reward
 Proof of Work (PoW)

Eve has only 2 Creates fake Sends to the Honest miners reject
Bitcoins but tries to transaction network invalid transactions
send 10

Cheating costs more

than it’s worth

Resources wasted—no The fake block is never Nodes detect the fake
reward for Eve added to the chain and discard the block
 Proof of Work (PoW)

Alice wants to send Signs Transaction Sends to the Miner validates and
1 Bitcoin to Bob network include in block
(Enough bitcoins
available)
Honesty is rewarded

Block is added to the Solves puzzle and

Blockchain Nodes verify broadcasts
Bob receives Bitcoin, and
the miner gets the reward
Proof of Work (PoW)

Proof of Work addresses the digital money

challenge of 'double spending' by ensuring each
transaction is securely validated before being
added to the blockchain
 Proof of Work (PoW)

• PoW is secure but wastes energy

• Only one miner wins, others waste power

• High environmental impact

• Shift toward greener Proof of Stake

 Proof of Stake (PoS)

Step 1: Validators staking some of their

coins to get picked up for adding a new • Depends on financial trust
block of and responsibility
transactions Step 4: Eva got selected to add
Step 3: Function that her block to blockchain

Adam Claire Eva

randomly picks a network • Blockchain security comes
validator
from economic risk, not
energy use

• Cheating is possible but

extremely costly and risky
— attackers need over 50%
Step 5: New block validated
by Validators in the network
stake and risk losing it all

• Eco-friendly—it uses very

Valid Invalid little electricity

Step 2: Coins at “STAKE”

in an escrow account
Eva gets to add her new block Eva loses hers staked coins to
and receives cryptocurrency the network Slashing
as a reward
 Estimated terawatt hours per year

-10
110

10
30
50
70
90
May 2017
Jul 2017
Sep 2017
Nov 2017
Jan 2018
Mar 2018
May 2018
Jul 2018
Sep 2018
Nov 2018

Source(s): Digiconomist; ID 1265897

Jan 2019
Mar 2019
May 2019
Jul 2019
Sep 2019
Nov 2019
Jan 2020
Mar 2020
May 2020
Jul 2020
Sep 2020
Nov 2020
Jan 2021
Mar 2021
May 2021
Jul 2021
Estimated TWh per year

Sep 2021
Nov 2021
Jan 2022
Mar 2022
May 2022
Jul 2022
Global Ethereum (ETH) energy consumption up to March 20, 2025

Sep 2022
Nov 2022
Jan 2023
Mar 2023
May 2023
Minimum TWh per year

Jul 2023
Sep 2023
Nov 2023
Jan 2024
Mar 2024
May 2024
Jul 2024
Sep 2024
Nov 2024
Jan 2025
Mar 01, 2025
Mar 03, 2025
Mar 05, 2025
Mar 07, 2025
Mar 09, 2025
Ethereum energy consumption worldwide from May 2017 to March 20, 2025 (in terawatt hours)

Mar 11, 2025

Mar 13, 2025
Mar 15, 2025
Mar 17, 2025
Mar 19, 2025
 Proof of Stake (PoS)

Policymakers now expect transparency on blockchain energy use

Proof of Stake (PoS)
 Blockchain, Economic Policy, and the Regulatory
Challenge

Economic policy: Government decisions to manage inflation, interest rates, money

supply, and spending

Role of central banks: Use tools like rate cuts or money supply to boost growth

Blockchain disruption: Cryptocurrencies like Bitcoin have fixed supply — no central

control

Limited supply impact: Bitcoin can’t be adjusted for economic needs — independent of
policy

Pros and cons: Protects from inflation, but reduces central bank influence

Currency shift risk: If people switch to crypto, central banks lose control — like losing
the steering wheel
 Blockchain, Economic Policy, and the Regulatory
Challenge

Taxation problem: Harder to track income or enforce taxes if earnings are in anonymous
crypto

Example: Companies paying in Bitcoin reduce national currency use, weakening

economic control

CBDCs: Government-issued digital currencies (e.g., India’s Digital Rupee) restore

control while using blockchain tech

Regulatory dilemma: How to regulate something decentralized and borderless?

Different global views: US treats crypto as property, El Salvador treats Bitcoin as

currency
 Blockchain, Economic Policy, and the Regulatory
Challenge

Privacy conflict: Blockchain is permanent, but privacy laws (like GDPR) require data
deletion

Smart contracts vs regulation: Code governs actions, but bugs or abuse (like DAO hack)
reveal flaws

DAO hack: Code flaw led to major theft — Ethereum split into two chains after a
controversial fix

Emerging governance: New models include voting, councils, and foundations for safer
systems

Blockchain challenges how economies run; regulation and governance are essential for
adoption
AI and Fintech: From Fraud Detection to Generative
Innovation

Artificial Intelligence

Think Decide Interact

 AI and Fintech

Recognizes patterns in historical data

24/7
Makes predictions

Learns from new data Artificial Intelligence Speed

Understands human language

Takes decisions Consistent

AI in Digital Payments

Artificial Intelligence

Primary decision: Is the transaction

genuine or fraud?

Data Points:
• Is the amount consistent with your past
behavior?
• Are you in the same city where your
phone is located?
• Has your card been used in unusual
patterns recently?
 AI in Digital Payments

Artificial Intelligence

Fraudster is using your card in London

You are buying coffee in Mumbai

 AI in Digital lending and credit

Artificial Intelligence
Traditional credit scoring Non-traditional credit scoring
• Credit history • Rent payment history
• Income documents • Phone bill payment history
• Employment status • Cash flow patterns
• …… • Mobile usage behavior
• …
 AI in Wealth Advisory

Based on:
• Your goals
• Your risk appetite
• Your investment horizon AI allocates your funds

AI is the backbone of robo-advisory platforms

 AI in InsurTech

AI based Chatbots

Can issue insurance Can process claims

policy in minutes in seconds
 AI in RegTech

Know Your Customer

(KYC) AI based system can:
• Scan documents
Artificial Intelligence • Verify identities
• Flag suspicious transactions
Anti-Money • Generate compliance reports
Laundering (AML) • ….
 AI in FinTech Marketing

AI monitors:
• User behavior
Personalized
• Purchase history
Artificial Intelligence marketing
• Financial activity
• Click patterns
 Generative AI in Fintech: Creating Content,
Conversations, and Customer Value

Traditional AI Generative AI

Recognizes patterns to make predictions Gen AI creates!

It creates text, images, code, audio,
video…

Gen AI can greatly help in the labor intensive and low value work in the financial sector
 What is Generative AI
Large Language Models (LLMs) and other generative neural networks that create new content

Generate investment Automating Personalize email Generate Simulate financial

summaries and responses to campaigns marketing content planning scenarios
portfolio reports routine queries

Uses Gen AI to power Research and generate reports

a support chatbot for high-net-worth clients
 Gen AI in FinTech

Gen AI is being used internally in fintech

companies also

Automatically generate Translate regulatory text into Prepare meeting summaries

compliance documentation plain language from client interactions.
 Considerations while using Generative AI

Gen AI can be wrong, safeguards are essential

Explainable AI Data governance Ethical framework

 What is Generative AI

Pre-trained using Underneath is a Large Fine-tune using

Large amount of Language Model (a domain specific data
textual data huge neural network)
 Model Pre-training
Agenda is to learn basics of human language

What is a credit score

Write a regulatory
disclosure for a fintech
It is like a person who reads Large Language Model loan product in India
a lot becomes better at
writing and comprehension
 Model Fine-tuning
Agenda is to turn from generalist to a specialist in financial services

Fine-tuning is done using:

• Regulatory filings like Reserve Bank/

Federal Bank circulars, SEC reports
• Historical customer support chats
• Loan application data and summaries
• Investment research reports from analysts Pre-trained Large
• Compliance documentation Language Model
 Model Fine-tuning
Agenda is to turn from generalist to a specialist in financial services

Summary of an RBI guideline

Draft a response to a loan
applicant
Answer questions like, “Why was
my transaction declined?”
Generate a customized investment
overview based on a client’s
profile.

Read all internal documents

Go to library and read as

many books as you can
 IoT in Fintech – What It Is and How It Works

What is IoT?

• IoT = Network of physical devices connected to the internet

• Devices collect, exchange, and process real-world data
• Examples: Smartphones, smartwatches, wearables, connected cars,
smart appliances

How Does IoT Work?

• Devices use sensors to collect data (e.g., heart rate, location)

• Analyzed in real time or stored for future insights
• Enables automation, feedback, and seamless user experience
 IoT in Fintech – What It Is and How It Works

Everyday Example of IoT

IoT brings real-world context

to financial services

IoT Fintech
 IoT in Fintech – What It Is and How It Works

Payments & Contactless Transaction

• Smartwatches/bands enable tap-to-pay using NFC

• Eliminates need for physical wallets or cards
• Example: Apple Watch, Google Wear OS

Insurance Innovation: Usage-Based and Behavior-Based Pricing

• Auto Insurance: Telematics monitors driving for usage-based pricing

• Health Insurance: Wearables track fitness for rewards/discounts
• Focus shifts from risk coverage to health promotion
 IoT in Fintech – What It Is and How It Works

Security & Fraud Detection Mumbai Delhi

• Devices track user behavior and location

• Mismatch in device locations = suspicious activity
• Adds biometric and behavioral security layers

Wealth Management & ESG Investing

• IoT sensors monitor real-world ESG performance

• Enables transparent, data-backed sustainability ratings
• Influences ESG-focused investment decisions
 IoT in Fintech – What It Is and How It Works

Fitness tracker linked to health insurance

Usage-based car insurance via telematics
Tracy = cashback

Smartwatch used for payments

Location-based fraud prevention in action

 IoT in Fintech – What It Is and How It Works

Challenges of IoT in Fintech

• Data Privacy: Needs encryption, consent, anonymization

• Interoperability: Complex integrations with banks/APIs

• Compliance: Must align with financial regulations

 Low-Code and No-Code: Accelerating Fintech
Innovation Without Writing Code

Traditional vs. Low-Code Development

• Traditional fintech apps required expert coding & long timelines

• Low-code = visual tools + some coding
• No-code = drag-and-drop tools for non-developers

Why It Matters

• Speeds up fintech innovation

• Enables faster product launches and customer feedback loops
• Reduces development costs and bottlenecks
 Low-Code and No-Code: Accelerating Fintech
Innovation Without Writing Code

Real-World Applications

1) Digital Lending: Set up loan workflows using no-code

No code platform used: Clappia

 Low-Code and No-Code: Accelerating Fintech
Innovation Without Writing Code

Real-World Applications

2) Payments: Easily integrate platforms like Stripe, PayPal 3) Regtech: Automate KYC and compliance checks
 Low-Code and No-Code: Accelerating Fintech
Innovation Without Writing Code

Real-World Applications

4) Wealthtech: Build custom dashboards and tools quickly

 Low-Code and No-Code: Accelerating Fintech
Innovation Without Writing Code

Big Banks Use It Too

• Goldman Sachs: Uses Unqork for onboarding

• HSBC: Uses Appian to speed up compliance processes

 Low-Code and No-Code: Accelerating Fintech
Innovation Without Writing Code

How These Platforms Work

• Visual editors to design UI, workflows, and logic

• Pre-built connectors for databases, APIs, payments, and analytics
• Fast iteration, less risk, and shorter time to market

Example – Maya’s Story

• Maya, a product manager, launches a savings app using no-code tools

• Links to bank systems, sets rewards, and tracks user sign-ups— all
in weeks
 Low-Code and No-Code: Accelerating Fintech
Innovation Without Writing Code

Limitations to Know

• Best for simple to mid-level applications

• Complex systems may still need traditional coding
• Security, compliance, and integration must be managed carefully

The Future of Fintech Development

• Low-code & no-code help solve tech talent gaps

• They democratize innovation and accelerate digital
transformation
• Key to staying agile and customer-focused
 Quantum Computing in Fintech: Unlocking
the Next Frontier

Classical Computers Quantum Computers

Classical Bit: Can be either 0 or 1. Quantum Bit (Qubit): Can be both 0 and 1
at the same time — called superposition

Qubits can also be entangled, meaning

their states are linked — even across
distances

Qubits allow for massively parallel

processing, enabling faster computation
for complex tasks

It can solve complex financial problems

much faster than classical systems
 Quantum Computing

Use Case – Portfolio Optimization

• Quantum algorithms can analyze millions of

investment combinations simultaneously

• Example: JPMorgan Chase & IBM Quantum

exploring quantum-powered investment planning

Use Case – Fraud Detection

• Can detect subtle transaction patterns across huge

datasets

• Leads to faster, more accurate fraud prevention with

fewer false positives
 Quantum Computing

Use Case – Cross-Border Payments

• Helps optimize routing, currency checks, and regulatory verification

• Could cut settlement times from hours/days to seconds

Use Case – Derivative Pricing

• Derivatives require complex real-time calculations

• Goldman Sachs is working with QC Ware to apply quantum

solutions
 Quantum Computing

Current Limitations

• Quantum machines are still fragile, require ultra-cold environments, and

are error-prone

• Commercial use is 5–10 years away, but progress is accelerating

Fintech Leaders Are Preparing

• Building partnerships, launching pilot projects, and training teams

• Early movers will gain the competitive advantage when quantum scales
Bringing It All Together – The Future Built on
Emerging Technologies

Fintech
Emerging
Tech.
 Bringing It All Together – The Future Built on
Emerging Technologies
• Creates trustless, transparent, and tamper-proof
systems
• Turns raw data into actionable insights • Enables digital currencies, tokenized assets, and
• Supports real-time risk assessment, customer decentralized finance
personalization, and proactive decisions

• Adds intelligence to digital finance

• Powers fraud detection, robo-advisory,
compliance automation, and customer
Fintech engagement
Emerging
• Links physical behavior to financial systems Tech.
• Enables usage-based insurance, smartwatch
payments, and context-aware services

• Still early-stage, but promises massive speed

and scale for: Risk modeling, Derivative
• Speeds up product development without needing full pricing, Cross-border payments etc.
developer teams
• Empowers business users to launch fintech solutions
faster
Bringing It All Together – The Future Built on
Emerging Technologies

These are not isolated tools — they amplify one another:

• AI + Big Data = smarter decisions

• Blockchain + IoT = real-world asset tracking

• Quantum + Predictive models = deeper insights

• Low-code/ no-code enables rapid deployment of all the

above

Success needs more than tech — it needs:

Ethical Regulatory Responsible design

frameworks clarity (e.g., Explainable AI, privacy by
design
 The Revolution in Digital Payments and
Transaction Processing: Real-Time Payments
 Unified Payment Interface (UPI)

What Are Real-Time Payments?

• Transfers happen instantly, 24/7/365 — no delays, no holidays

• Contrast: Traditional transfers can take hours or days

UPI – India’s Real-Time Success Story

• UPI (Unified Payments Interface) by NPCI allows:

• Linking multiple bank accounts to one app
• Instant transfers via mobile number, QR code, or UPI ID

• Over 10 billion transactions/month — secure, free, interoperable

 Unified Payment Interface (UPI)

You (the sender) Rahul (the receiver)

UPI enabled
apps

UPI ID: rahul@oksbi

& more……
 Unified Payment Interface (UPI)

UPI Apps with Partner Banks and Their Common VPA Suffixes

App Name Supported/Partner Banks Common VPA Suffix (Handle)

Yes Bank, Axis Bank, HDFC Bank, @ybl, @axl, @okhdfcbank, @oksbi,
PhonePe
SBI @okaxis
ICICI Bank, Axis Bank, SBI, HDFC @okicici, @okaxis, @oksbi,
Google Pay
Bank @okhdfcbank
Paytm Paytm Payments Bank @paytm
Amazon Pay Axis Bank @apl
@upi, @oksbi, @okicici, @okaxis
BHIM App NPCI (All major banks supported)
(custom)
@okicici, @okaxis, @okhdfcbank
Cred ICICI Bank, Axis Bank, HDFC Bank
(based on bank)
Tata Neu ICICI Bank @icici

Mobikwik Mobikwik (wallet) & partner banks @ikwik, @okicici, @okaxis, etc.
 Unified Payment Interface (UPI)

rahul@oksbi
1. User Initiates 3. NPCI Resolves the
2. Payer PSP Sends Payee’s Address
the Request Request to NPCI
Payment request
initiated Address resolution:
Enter Payee’s UPI ID:
rahul@oksbi UPI ID turned into
Or NPCI UPI Server bank account #
Scan his QR code Response Address
Or passed from Axis bank Resolved
Select his contact no. to Google pay app NPCI instructs
if saved HDFC to debit INR
Enter amount
5. Transaction 500 & response
NPCI instructs SBI to
Confirmation back to NPCI
(E.g. INR 500 ),Hit credit INR 500 to
“Send” and enter Rahul’s account
your
UPI PIN

4. Debit & Credit

Process
 Unified Payment Interface (UPI)

“INR 500 received

from
yourname@okaxis”
“INR 500 sent to
rahul@oksbi”

You (the sender) Rahul (the receiver)

UPI uses two-factor authentication = phone (device binding) + UPI PIN

 Unified Payment Interface (UPI)

• UPI links directly to your bank account, not a wallet

• Supports person-to-person transfers, merchant, bill, donation, and recurring

payments

• QR code and phone number work via linked UPI ID

• UPI is open and interoperable across apps and banks

• NPCI acts as the central switch, ensuring security, speed,

and transparency
 Unified Payment Interface (UPI)

Global Momentum

• FedNow (USA) and Pix (Brazil) inspired by UPI

• Real-time payments are becoming a global expectation

 Cardless and Contactless Payments: The Era
of Tap and Go

• Beyond speed, payments are evolving in how we pay

• Shift from cards to phones, watches, biometrics

• Enabled by NFC (Near Field Communication)

What is NFC?

• NFC = short-range wireless tech (~4 cm range)

• Allows tap-to-pay using phones, watches, cards ETC.

• Powers Apple Pay, Google Pay, Samsung Pay, etc.

Cardless and Contactless Payments: The Era
of Tap and Go
Step 1 – Tap Device or Card

• You tap your device/card at checkout terminal

• Devices detect each other via magnetic field

• Starts a secure handshake

Cardless and Contactless Payments: The Era
of Tap and Go

Step 2 – Tokenization for Security

• Device sends a one-time-use token, not card info

• Tokenization protects your real financial data

• Even if intercepted, token is useless elsewhere

 Cardless and Contactless Payments: The Era
of Tap and Go

Step 3 – Secure Data Exchange

• Terminal adds transaction details (amount, merchant)

• Sends all data securely to payment processor/bank

Cardless and Contactless Payments: The Era
of Tap and Go

Step 4 – Bank Approval

• Bank matches token to card, checks balance, verifies

legitimacy

• If all checks pass, approval is sent back to the

terminal
Cardless and Contactless Payments: The Era
of Tap and Go

Step 5 – Instant Confirmation

• Terminal shows success via beep, green light, or

vibration

• You receive immediate confirmation on your device

• Entire process takes under 2 seconds

 Cardless and Contactless Payments: The Era
of Tap and Go

Why NFC Is So Secure

• Very short communication range (hard to intercept)

• Tokenization means card info is never exposed

• Combines speed + safety

 Biometrics in payments: From PIN to
Fingerprint

Biometrics = security through physical identity

Touch ID (iPhone) and

Face ID are now standard
 Biometrics in payments: From PIN to
Fingerprint

Adhaar-Based Biometric Payments (India)

• Payments via fingerprint scans linked to Aadhaar +

bank

• No phone or card needed — works in remote areas

• Boosts financial inclusion

 Biometrics in payments: From PIN to
Fingerprint

• Biometric login for apps (face/fingerprint)

• Voice biometrics used in customer support

• Adopted by banks like Barclays, HSBC

User Story – Susan

• Unlocks app with fingerprint

• Confirms bill with Face ID

• Calls bank — authenticated by voiceprint

• No passwords used at all

 Biometrics in payments: From PIN to
Fingerprint

Why Biometrics Are Effective

• Convenient + secure
• Hard to fake (unique fingerprints, facial points,
voice tone)
• Reduces password fatigue and fraud risk

Adoption by Generation (U.S. 2023)

• 51% of Gen Z use face recognition; 29% use fingerprint

• Millennials lead in fingerprint scans (41%)

• 84% of Boomers don’t use biometrics

Source(s): Amazon Web Services; PYMNTS

 Biometrics in payments: From PIN to
Fingerprint

Why People Use Biometrics Main solutions to replace workplace passwords in the United States 2023
Share of respondents

0% 10% 20% 30% 40% 50% 60% 70%

Faster Fraud
Ease of use
checkout prevention Biometrics such as facial recognition,… 58%

Multi-Factor Authentication 46%

Biometrics Replacing Passwords One-Time Passwords (OTP), magic links,… 37%

Security keys such as Yubico 37%

• 58% of firms are replacing passwords with biometrics
Passkeys 35%
• Other methods: MFA, OTP, passkeys, QR codes PIN codes 34%

Single Sign-On (SSO) 30%

Passphrases 26%
 Biometrics in payments: From PIN to
Fingerprint

Risks from Generative AI

Liveness Detection = Protection

• Confirms it’s a real person, not a

deepfake

• Face: Blink, turn, smile

• Voice: Natural speech

• Fingerprint: Pulse/temperature checks

 Biometrics in payments: From PIN to
Fingerprint

Multimodal Biometrics

• Combines multiple methods for stronger security

• Example: Face + voice, or fingerprint + behavior

• “Face” and “Multimodal” will see biggest growth

Source(s): Biometrics Institute; ID 1339349

 Biometrics in payments: From PIN to
Fingerprint

Source(s): Idemia; Dentsu Digital Inc.; ID 1338824 Source(s): Duo Security; ID 1303227 Source(s): Idemia; Dentsu Digital Inc.; ID 1338830
 Payment Orchestration

What Is Payment Orchestration?

• A central platform that connects businesses to multiple

payment methods and providers

• Handles cards, wallets, UPI, crypto — all through one

integration
Payment Orchestration

Businesses accepting payments globally

Payment Orchestration

API connects businesses to the entire payment network

Payment Orchestration

Smart Routing: Chooses best processor

Payment Orchestration

Reconciliation & Settlement: Ensures

accurate tracking, reconciliation, and
settlement
Payment Orchestration

Real-time reporting gives businesses

insights into payment performance across
countries and platforms
Payment Orchestration

Third-party tools like fraud detection,

secure card storage, loyalty programs, and
invoicing enhance the platform’s power
and flexibility
Payment Orchestration

Connected to payment providers like

banks, card acquirers, and PSPs (e.g.,
Stripe, PayPal, Adyen) — they process the
actual transactions.
Payment Orchestration

Example: GlobalStyle Clothing – powered by

Adyen for seamless global payments

A global clothing store serves customers paying via Visa (US),

UPI (India), and PayPal (Europe)

Without orchestration: multiple integrations, contracts, and

compliance steps

With orchestration (e.g., Stripe, Adyen): single integration,

auto-routing by region/payment method

Adds fraud checks, real-time tracking, and backup routing if a

provider fails — ensuring seamless, reliable payments
 Payment Orchestration
Comparison of Leading Payment Orchestration APIs
Platform Global Reach Key Strengths Suitable For Pros Cons
Easy integration, Developer-friendly,
Startups, SaaS, May be costly for high-
Stripe 40+ countries embedded finance, wide ecosystem,
Marketplaces volume merchants
fraud tools reliable
End-to-end stack,
Enterprise, Retail, High performance, Less flexible for small
Adyen 30+ countries unified commerce, data
Airlines single platform businesses
insights
Performance Fewer localized
Global eCommerce, Transparent pricing,
Checkout.com 50+ countries optimization, deep payment options in
Fintech fast scaling
analytics smaller markets
Can be complex to
Fintech-as-a-service, Emerging markets, Massive coverage,
Rapyd 100+ countries navigate for smaller
local payments, wallets Fintech built-in compliance
teams
B2B payouts,
Freelancers, Simple UX, good for Limited feature set for
Payoneer 200+ countries freelancer and SMB
Marketplaces cross-border B2B orchestration use cases
support
No-code automation,
Developers, SaaS, Highly customizable Newer player, fewer
Primer Global drag-and-drop
SMEs workflows enterprise use cases
integrations
Deep PayU network, Acquirer-centric, less
Smart routing, real- Large merchants, India
Zooz (PayU) Global good for emerging support for fintech
time data, retry logic LATAM
markets layering
Travel/airline routing Niche expertise,
CellPoint Travel-focused Airlines, Mobility Narrow industry focus
optimization revenue recovery focus
 Credit Card Balance Transfers

What is a Balance Transfer?

• Move debt from one card to another for lower interest

• Common offers: 0% APR for 6–12 months
• Helps reduce interest and simplify repayment

APR (Annual Percentage Rate) - total yearly cost of borrowing,

including interest and fees

0% APR - no interest is charged during the promo period —

helping save money while repaying debt
 Credit Card Balance Transfers

0% APR For 12 months on

20% APR balance transfers

• Acquiring bank (Barclays) – the bank

offering you the new credit card

• Original source bank (Citibank) – the one

holding your existing card debt

• Card network – like Visa, Mastercard, or

RuPay, which acts like a secure
communication bridge between banks
(Ideally before the 12-month
promo ends to avoid interest)
 Credit Card Balance Transfers

0% APR For 12 months on

20% APR balance transfers

(Ideally before the 12-month

promo ends to avoid interest)
 Credit Card Balance Transfers

0% APR For 12 months on

20% APR balance transfers

(Ideally before the 12-month

promo ends to avoid interest)
 Credit Card Balance Transfers

0% APR For 12 months on

20% APR balance transfers

(Ideally before the 12-month

promo ends to avoid interest)
 Credit Card Balance Transfers

0% APR For 12 months on

20% APR balance transfers

(Ideally before the 12-month

promo ends to avoid interest)
 Credit Card Balance Transfers

0% APR For 12 months on

20% APR balance transfers

(Ideally before the 12-month

promo ends to avoid interest)
 Credit Card Balance Transfers

0% APR For 12 months on

20% APR balance transfers

Core Banking
Card Management
System (CBS):
System (CMS):
Handles actual
Tracks credit limits, API fund movements
usage, payments,
and interbank
and offers.
settlements
Secure data
exchange bridge
(Ideally before the 12-month
promo ends to avoid interest)
 Credit Card Balance Transfers

Security & Protection

• Encryption: All interbank data is securely encrypted
• Tokenization: Sensitive info like card numbers replaced
with secure tokens

Customer Benefits

• Lower Interest: Save money with 0% APR offers (watch out for 1–
3% transfer fees)
• Debt Consolidation: Combine multiple balances into one card
• Credit Score Boost: Lower credit utilization = better credit score
(if managed well)
 Payment Orchestration

What Is Payment Orchestration?

• A central platform that connects businesses to multiple

payment methods and providers

• Handles cards, wallets, UPI, crypto — all through one

integration

Why It Matters

• Enables global scale, higher success rates, fewer failures

• Cuts costs and delivers seamless experiences to users