Akanksha Subhedar - 49 - Black Book LLL

"A STUDY ON USE AND GROWTH OF TECHNOLOGY USED
FOR MAKING FINANCIAL TRANSACTIONS"
A project submitted to
University of Mumbai for partial completion of the degree of
B.Com (Accounting and finance)
Under the Faculty of Commerce
SUBMITTED BY
"AKANKSHA SUBHEDAR"
UNDER THE GUIDANCE OF
_ABEDA SHAIKH_
SASMIRA COLLEGE OF COMMERCE AND SCIENCE
Sasmira marg, Worli, Mumbai 400030
ACADEMIC YEAR 2019 – 2020
1
"A STUDY ON USE AND GROWTH OF TECHNOLOGY USED
FOR MAKING FINANCIAL TRANSACTIONS"
A project submitted to
University of Mumbai for partial completion of the degree of
B.Com (Accounting and finance)
Under the Faculty of Commerce
SUBMITTED BY
"AKANKSHA SUBHEDAR"
UNDER THE GUIDANCE OF
_ABEDA SHAIKH_
SASMIRA COLLEGE OF COMMERCE AND SCIENCE
Sasmira marg, Worli, Mumbai 400030
ACADEMIC YEAR 2019 – 2020
2
Certificate
This is to certify that Ms. Akanksha Subhedar has worked and duly completed
her/his Project Work for the degree of B.Com (Accounting and Finance) under the
Faculty of Commerce in the subject of Commerce and her project is entitled, “A study
on use and growth of technology used for making financial transactions” under
my supervision.
I further certify that the entire work has been done by the learner under my guidance
and that no part of it has been submitted previously for any Degree or Diploma of any
University.
It is her own work and facts reported by her personal findings and investigations.
Name and Signature of Guiding Teacher:
Prof. Abeda Shaikh
Date of submission: 09-05-2020
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Declaration by learner
I the undersigned Miss. Akanksha Subhedar here by, declare that the work
embodied in this project work titled “A study on use and growth of technology used
for making financial transactions”, forms my own contribution to the research work
carried out under the guidance of Prof. Abeda Shaikh is a result of my own research
work and has not been previously submitted to any other University for any other
Degree/ Diploma to this or any other University.
Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.
Name and Signature of the learner:
Akanksha Subhedar
Certified by,
Name and signature of the Guiding Teacher
Prof. Abeda Shaikh
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Acknowledgment
To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.
I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.
I would like to thank my Principal, Dr. Ritu Bhattacharyya for providing the
necessary facilities required for completion of this project.
I take this opportunity to thank our Coordinator Prof. Tripurari Jha, for his moral
support and guidance.
I would also like to express my sincere gratitude towards my project guide Prof.
Abeda Shaikh whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference
books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project.
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ABSTRACT
The evolution of technology has resulted in facilitation of new modes of

delivery and processing channels as well as more innovative products and services in
the market. It has expanded the market to the global level, enhancing the consumers to
purchase any product or service from one corner of the world to another. With
increased educational qualification and growing wealth, the consumers’ need and
expectations are continually changing and they are involving
themselves more and more in their financial decisions. Making financial transactions
through technology has made their approach easier through Debit Cards, Credit Cards,
E-wallets, E- cheques, online banking, Micro payment system and smart
cards. The aim of the study is to analyse the extent of use and growth of these
methods of transactions among the public.
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INDEX
CHAPTER TITLE PAGE

NO.
CHAPTER 1: 1.1. Types of financial transactions done using 13

Introduction technology
1.2. Importance of using technology for making 16
financial transactions
18
1.3. Financial technology
19
1.3.1. Areas of application
21
1.3.3. Region of functioning
22
1.4. Impact of technology on the banking sector
25
1.5. Innovation in digital transactions
30
1.6. History
1.7. Top market competitors 35

1.8. Swot analysis of using technology for financial 41
transactions
CHAPTER 2: 2.1. Objectives 44
Research 2.2. Hypothesis 45
methodology 2.3. Research questions 46
2.4. Scope of study 47
2.5. Limitations of study 48
2.6. Sources of data collection 49
2.7. Sample size 49
2.8. Location of study 49
2.9. Tabulation of data 50
2.10. Techniques and tools 52
CHAPTER 3: 3. Literature review 53
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CHAPTER 4: Data 4. Data analysis, interpretation and presentation and 68
analysis hypothesis testing
CHAPTER 5: 5.1 Conclusion 85
Conclusion and
5.2. Suggestions 86
suggestions
Bibliography 87
Annexure 88
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CHAPTER NO. 1
INTRODUCTION
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1. INTRODUCTION
The emergence of Information and Communication Technology (ICT) had completely

changed the lives and operations of individuals and organizations respectively. ICT and
Digital technologies had made great evolutionary development in finance, economics,
operational costs and enhanced organizational performance. The era of ICT and digital
innovations has come along with a dynamic change in the world business environment,
whereby business transactions are constantly shifting from cash-based transactions to
electronic-based ones. Also, the global creation of the internet and its rapid use over the
years had contributed much in facilitating electronic commerce in global business
environment. Consequently, as transactions among business partners continue to extend
on the e-commerce platform, an electronic payment solution emerged to replace the
former cash-based payment systems. The start of this development in the global business
environment challenged most organizations to automatically switch from the traditional
paper-based money transactions to an electronic payment system which is widely known
as the e-payment system. Generally, electronic payment can be defined as a platform used
in making payments for goods/services purchased online through the use of internet. With
the introduction of e-payment system, the world payment system turned out to line up
with the current trend of cashless transactions among individuals, businesses and
governments. As a result of this, the world payments system is gradually changing from
coins and paper based money to electronic forms that provide more convenient, fast and
secured process of making payments among individual and organizations. Similarly, the
global annual non-cash transactions being facilitated by e-payment and mobile payment
(m-payment) had been on the increase over the years, except for 2012 where it decelerates
from an annual growth rate of 8.6% in 2011 down to 7.7% in 2012 (World Payment
Report, 2014).
As part of government reforms Prime Minister Mr. Narendra Modi demonetized the high
value currency of Rs. 500 and 1000 in November 2016 and also launched the “digital
india” initiative in 2015.These initiatives have provided extensive boost up to the digital
payment system in the country. Government’s other initiatives like BHIM and UPI are
supporting in transition and faster adoption of digital payments. Electronics Consumer
transaction made at point of sale (POS) for services and products either through internet
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banking or mobile banking using smart phone or card payment are called as digital
payment. The digital payment system has the following phases,
1. Registration
2. Invoicing
3. Payment selection
4. Payment confirmation.
This payment system generally includes 3 electronic payment instruments namely, cash,
cheque and card. Post demonetization is effecting the e-commerce sector that Cash on
Delivery is gradually getting stopped and other modes of payment is replaced like Card on
Delivery, Net Banking, Debit Card, Credit Card etc. .Demonetization will positively help
out e-commerce industry in India enhances the chance for people to go cashless.
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1.1 TYPES OF FINANCIAL TRANSACTIONS DONE USING
TECHNOLOGY
E-banking: Electronic banking is a form of banking in which funds are transferred

through an exchange of electronic signals rather than through an exchange of cash,
checks, or other types of paper documents. Transfers of funds occur between financial
institutions such as banks and credit unions. They also occur between financial
institutions and commercial institutions such as stores. Whenever someone withdraws
cash from an automated teller machine (ATM) or pays for groceries using a debit
card (which draws the amount owed to the store from a savings or checking account),
the funds are transferred via electronic banking.
Electronic banking relies on intricate computer systems that communicate using

telephone lines. These computer systems record transfers and ownership of funds, and
they control the methods customers and commercial institutions use to access funds. A
common method of access (or identification) is by access code, such as a personal
identification number (PIN) that one might use to withdraw cash from an ATM
machine.
There are various electronic banking systems, and they range in size. An example of a
small system is an ATM network, a set of interconnected automated teller machines
that are linked to a centralized financial institution and its computer system. An
example of a large electronic banking system is the Federal Reserve Wire Network,
called Fedwire. This system allows participants to handle large, time-sensitive
payments, such as those required to settle real estate transactions.
Banks offer various types of services through electronic banking platforms. These are
of three types:
Level 1 – This is the basic level of service that banks offer through their websites.
Through this service, the bank offers information about its products and services to
customers. Further, some banks may receive and reply to queries through e-mail too.
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Level 2 – In this level, banks allow their customers to submit instructions or
applications for different services, check their account balance, etc. However, banks
do not permit their customers to do any fund-based transactions on their accounts.
Level 3 – In the third level, banks allow their customers to operate their accounts for
funds transfer, bill payments, and purchase and redeem securities, etc.
Most traditional banks offer e-banking services as an additional method of providing

service. Further, many new banks deliver banking services primarily through the
internet or other electronic delivery channels. Also, some banks are ‘internet only’
banks without any physical branch anywhere in the country.
E- wallet: E-wallet is a type of pre-paid account in which a user can store his/her
money for any future online transaction. An E-wallet is protected with a password.
With the help of an E-wallet, one can make payments for groceries, online purchases,
and flight tickets, among others.
E-wallet has mainly two components, software and information. The software
component stores personal information and provides security and encryption of the
data. The information component is a database of details provided by the user which
includes their name, shipping address, payment method, amount to be paid, credit or
debit card details, etc.
For setting up an E-wallet account, the user needs to install the software on his/her
device, and enter the relevant information required. After shopping online, the E-
wallet automatically fills in the user’s information on the payment form. To activate
the E-wallet, the user needs to enter his password. Once the online payment is made,
the consumer is not required to fill the order form on any other website as the
information gets stored in the database and is updated automatically.
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E- cheque: An electronic version or representation of a paper cheque. The account
holder writes an e-check (or e-cheque) using a computer or other type of electronic
device and transmits the e-cheque to the payee electronically. Like paper cheques, e-
checks are signed by the payer and endorsed by the payee. Rather than handwritten or
machine-stamped signatures, however, e-checks are affixed with digital signatures,
using a combination of smart cards and digital certificates. The payee deposits the e-
check, receives credit, and the payee's bank clears the e-check to the paying bank. The
paying bank validates the e-check and then charges the cheque writer's account for the
cheque.
Micro- payment: A micropayment is an e-commerce transaction involving a very

small sum of money in exchange for something made available online, such as an
application download, a service or Web-based content.
Smart card: A smart card, also called chip card or integrated circuit card is a type of
pocket-sized card with embedded integrated circuits which can process data. This card
can receive input which is processed by way of the ICC applications and delivered as
an output. A smart card is a plastic card embedded with a computer chip that stores
and transacts data between users. Smart card-enhanced systems are in use today in
several key applications such as health-care, banking, entertainment and
transportation. The card data is transacted via a reader connected to a computing
system.
Card services:
a. Credit card: A credit card is a payment card issued to users (cardholders) to enable
the cardholder to pay a merchant for goods and services based on the cardholder's
promise to the card issuer to pay them for the amounts plus the other agreed
charges. The card issuer (usually a bank) creates a revolving account and grants a line
of credit to the cardholder, from which the cardholder can borrow money for payment
to a merchant or as a cash advance.
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b. Debit card: A debit card is a payment card that deducts money directly from a
consumer’s checking account to pay for a purchase. Debit cards eliminate the need to
carry cash or physical checks to make purchases directly from your savings. In
addition, debit cards, also called “check cards,” offer the convenience of credit cards
and many of the same consumer protections when issued by major payment
processors such as Visa or Mastercard.
c. ATM: An automated teller machine (ATM) is an electronic banking outlet that

allows customers to complete basic transactions without the aid of a branch
representative or teller. Anyone with a credit card or debit card can access most
ATMs. Certain credit cards, however, may have more trouble.
ATMs are convenient, allowing consumers to perform quick, self-serve transactions

from everyday banking like deposits and withdrawals to more complex transactions
like bill payments and transfers.
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1.2 IMPORTANCE OF USING TECHNOLOGY FOR MAKING
FINANCIAL TRANSACTIONS
Variety of Choice
Electronic payment systems allow financial institutions, businesses and the
government to offer a variety of payment options to their customers. These systems
include automated teller machines, debit cards, credit cards, mobile banking and
payment of bills through the phone. Traditional business payments systems depends
mainly on a limited number of the business outlets situated in different locations. This
limits the client coverage, however – through Internet services – systems that rely on
e-payment are available to a large number of clients.
Reduced Costs
E-payments systems result in reduced costs for both businesses and individuals.
Businesses save on operational and processing expenses mainly due to reduction in
technological costs – for example, the use of the Internet and the acquisition of
computers and other machines. Expenditures in paper and postage is cut down along
with time spent in executing personal transactions. These reduced costs are often
passed down to customers who in turn pay less fees associated with transferring
money or making payments. Customers also save on time spent in dealing with
personal transactions as in traditional payment systems.
Reliability
The use of e-payments cancels out the use of drafting checks, transmitting cash and
invoices for both businesses and customers. This allows for faster execution of
transactions – for example, you do not have to wait for the 30 days required in
invoicing transactions. Credit cards also allow for customers to partake in transactions
without immediate cash.
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Security
The traditional payment systems mainly involved clients sending their confidential
information via post or physically visiting the transaction site. This presented a
number of security risks – for example, your mail may get lost or fall into the wrong
hands. Additionally, places where financial transactions take place are targets for
criminal attacks. E-payment systems offer encrypted services which protects the
clients’ private information during transmission and you do not even have to leave
your home.
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1.3 FINANCIAL TECHNOLOGY
Financial technology, often shortened to fintech, is the technology and

innovation that aims to compete with traditional financial methods in the delivery
of financial services. It is an emerging industry that uses technology to improve
activities in finance. The use of smartphones for mobile
banking, investing services and cryptocurrency are examples of technologies
aiming to make financial services more accessible to the general public. Financial
technology companies consist of both startups and established financial
institutions and technology companies trying to replace or enhance the usage of
financial services provided by existing financial companies.
Definition:
After reviewing more than 200 scientific papers citing the term "fintech," a study
on the definition of fintech concluded that "fintech is a new financial industry that
applies technology to improve financial activities."Fintech is the new applications,
processes, products, or business models in the financial services industry,
composed of one or more complementary financial services and provided as an
end-to-end process via the Internet. Fintech can also be considered as “any
innovative ideas that improve financial service processes by proposing technology
solutions according to different business situations, while the ideas could also lead
to new business models or even new businesses.”
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1.3.1 AREAS OF APPLICATION
Financial technology has been used to automate insurance, trading, banking

services and risk management.
The services may originate from various independent service providers including at
least one licensed bank or insurer. The interconnection is enabled through
open APIs and open banking and supported by regulations such as the
European Payment Services Directive.
In trading on capital markets, innovative electronic trading platforms facilitate trades

online and in real time. Social trading networks allow investors to observe the trading
behaviour/*r of their peers and expert traders and to follow their investment
strategies on currency exchange and capital markets. The platforms require little or no
knowledge about financial markets, and have been described as disruptors which
provide "a low-cost, sophisticated alternative to traditional wealth managers" by
the World Economic Forum.
Robo-advisers are a class of automated financial adviser that provide financial advice
or investment management online with moderate to minimal human intervention.
They provide digital financial advice based on mathematical rules or algorithms, and
thus can provide a low-cost alternative to a human advisers.
Global investment in financial technology increased more than 2,200% from

$930 million in 2008 to more than $22 billion in 2015. The nascent financial
technology industry in London has seen rapid growth over the last few years,
according to the office of the Mayor of London. Forty percent of the City of London's
workforce is employed in financial and technology services.
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In Europe, $1.5 billion was invested in financial technology companies in 2014, with
London-based companies receiving $539 million, Amsterdam-based companies
$306 million, and Stockholm-based companies receiving $266 million in investment.
After London, Stockholm is the second highest funded city in Europe in the past 10
years. Europe's fintech deals reached a five-quarter high, rising from 37 in Q4 2015 to
47 in Q1 2016. Lithuania is starting to become a northern European hub for financial
technology companies since the news in 2016 about the possible exit of Britain from
the European Union. Lithuania has issued 51 fintech licenses since 2016, 32 of those
in 2017.
Fintech companies in the United States raised $12.4 billion in 2018, a 43% increase
over 2017 figures.
In the Asia Pacific region, the growth will see a new financial technology hub to be
opened in Sydney, in April 2015. According to KPMG, Sydney's financial services
sector in 2017 creates 9 per cent of national GDP and is bigger than the financial
services sector in either Hong Kong or Singapore. A financial technology innovation
lab was launched in Hong Kong in 2015. In 2015, the Monetary Authority of
Singapore launched an initiative named Fintech and Information Group to draw in
start-ups from around the world. It pledged to spend $225 million in the fintech sector
over the next five years.
While Singapore has been one of the central Fintech hubs in Asia, start ups in the
sector from Vietnam and Indonesia have been attracting more venture
capital investments in recent years. Since 2014, Southeast Asian Fintech companies
have increased VC funding from $35 million to $679 million in 2018 and $1.14
billion in 2019.
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1.3.2 REGION OF FUNCTIONING
The way mobile phones have changed consumer behavior and how people access
the internet is also the reason why in the table below they differentiate between
the developed and developing countries and speak about Fintech 3.5 when it
comes to the latter. As of today, the countries with the highest Fintech usage are
China (69%) and India (52%). China, India and other emerging markets never had
time to develop Western levels of physical banking infrastructure, which has left
them more open to new solutions. In the case of China, the fintech penetration is
well above the average global adoption (33%) as well as that of the average
adoption across emerging markets (46%).
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1.4 IMPACT OF TECHNOLOGY ON THE BANKING SECTOR
Technology in the banking sector has always existed and this is because banks have
enormously relied on computers to record transactions. It has also helped in gaining
quick and easy access to confidential information. The Importance of technology in
banking sector can be seen with the launch of internet banking, ATM’s, mobile
banking, debit and credit cards. However, in the last few years there has been
tremendous transformation in financial services; technology has revolutionized in the
way we maintain our finances. The significant use of online and mobile banking has
created a whole new world of experience. Having said that, we will now look at some
areas as to how technology in banking industry has had a marvelous impact.
The impacts are explained through the following points:
I. Fewer Bank Visits:

A few years ago when an individual wanted to find out as to how much money was
still available in their bank accounts, they had to spend a lot of time driving to their
respective banks. Upon reaching there they then had to request one of the staff of the
bank to check the ledger and give them detailed information about the available
balance in their accounts. However, with the use of technology in banking it has
become so easy that without paying a visit to the bank; an individual can track their
account details from any place and anytime, too hassle-free.
II. Quick Transactions:

Money transactions have become so quick and easy that any type of bills can be paid
without fuss, unlike the earlier days when a cheque had to be presented in order to
make a purchase and there would be a long period of wait before receiving the product
because the bank had to first clear the cheque. But with the introduction of credit and
debit cards, online banking has become so easy to purchase products and pay bills. It
almost processes instantly and without any delay the amount debited is immediately
reflected on the online bank statement. There is also another amazing feature provided
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for online banking to pay bills, and that is by giving a standing instruction to the bank
for the payments that need to go out every month. So, the bank will automatically
transfer funds from your debit account without being notified every month.
III. Customer Service:

Chatbots are another great service that has made a great impact in the revolution of the
banking and finance industry. Chatbots are automated chat programs that use artificial
intelligence to provide efficient customer service 24/7. Through chatbots, customers
are now able to get their complete transaction details online without having to interact
with a human. With the help of the chatbots, banks are able to understand each
customer’s requirements and then offer customers with additional services that they
are eligible for, or reward their loyal customers.
IV. Detecting Fraud:

Prior to the introduction of technology in the banking sector, it was very difficult to
detect fraudulent transactions. Then years later when technology was used, the system
would help in detecting the fraud transaction, however, the staff at the bank would
have the full authority to confirm if there were any fraudulent activity or not. But now
with invention of AI or Artificial intelligence in the banking and finance industry, it
has become very easy to detect any fraudulent transactions, and this is because AI has
an enormous ability to detect and minimize any fraud transactions.
Upgradation of ATM’s
The banking system was completely transformed in the way it previously worked with
the introduction of ATM’s or Automated teller machines. ATM’s have helped
customers to withdraw cash faster from anywhere and at anytime, without the need to
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fill withdrawal and deposit slips, even when the banks are not open. With just the
introduction of ATM’s people all over the world were amazed. However, the more
astonishing fact is that these ATM’s will be upgraded, which means that these
machines can be operated contactless. Some ATM’s will use smartphones, biometrics
and iris recognition to operate in order to receive and make payments. There are two
benefits of using this upgraded version of ATM’s-
 Security:
The upgraded ATM’s will provide security to customers as they will not have to
physically carry their ATM cards every time they go out. It will also help in the cards
not getting stolen.
 Avoid ATM Hacks:
The other big concern among customers has always been with regards to remembering
passwords and the ATM pin numbers. This is especially a worry among senior
citizens because as they age they often tend to forget their pin numbers. So with the
upgrades of ATM’s, it is good news to our senior citizens that they would be protected
from hackers and need not worry that their money will be stolen. Also another benefit
is that no longer will customers have to remember their pin numbers. Someday, there
would even be voice recognition introduced at ATM’s.
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1.5 INNOVATION IN DIGITAL TRANACTIONS
1. Peer-to-Peer Payment Systems
Peer-to-peer (P2P) payment systems allow people to send or request money from each
other with only an app. P2P apps like Venmo gained a great deal of attraction amongst
the millennial generation and have since made their way to the broader consumer
population. These apps continue to grow at a tremendous rate which is likely due to
their constant improvement. In 2018 Venmo’s volume increased 79%. One of
Venmo’s more recent changes includes offering an option for consumers to instantly
transfer funds to a bank account for a small fee instead of their free transfer option
that takes one to three business days. Venmo also recently launched a debit card that
notifies consumers of every transaction made and enables consumers to instantly use
the money they have in their account, load additional money to use, and easily split all
purchases made with the card in their app.
Finch is another P2P payment system created to make paying friends, splitting bills,
and managing consumer finances easier. Finch uses a different approach to P2P by
allowing the consumer to organize bills or payments into groups such as
“Roommates” or “Hawaii Trip.” In each group, the consumer can add friends and any
corresponding bills to split between the group. However, they can also choose to split
bills directly from their bank feed making it extremely easy to use. Keeping payments
organized by groups enables the consumer to see spending habits and gain insights
into what groups have the highest spend.
2. Artificial Intelligence (AI) and Machine Learning
Leading FinTech Companies like Branch.co, ZestFinance, and MyBucks are using AI
and machine learning to offer loans to consumers with little to no credit history.
Branch.co assesses people’s credit based on smartphone data to determine eligibility
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and provides access to people who otherwise would be unapproved because of their
lack of credit history. They use machine learning to process tons of data points and
create personalized loan options for consumers.
MyBucks is able to approve loans within 30 minutes by using their advanced financial
technology that analyzes social media data, SMS information, and financial
information.
FinTechs like these are using AI to improve a previously long and complicated
process of determining loan eligibility. Using their advanced data, they can offer a
faster, more accurate and unbiased way to determine a consumer’s credit worthiness
and their corresponding interest rate. Similarly, by removing the loan officer from the
equation, these FinTech’s can save on costs and ensure a profit from their low rate
loans.
Similar to Moven is Emma, a personal finance management app that helps consumers
track their finances, find wasteful subscriptions, and make recommendations to help
save money. Emma allows its users to connect multiple bank accounts and credit
cards so they can track all their transactions in one place. Consumers can also use her
to set a budget and view their weekly and monthly spend.
Chime is a mobile only bank that offers a checking account, a savings account, and
debit card. They offer services to help their consumers save money and receive their
money faster by providing consumers with their paychecks up to two days faster than
their coworkers when they use direct deposit. They also help consumers build up their
savings by rounding up every purchase to the nearest dollar and transferring those
funds to their savings account or by allowing users to transfer a percentage of their
paychecks directly to their savings. Chime also ensures users are aware of any account
activity by sending transaction, transfer, and daily balance notifications to the user
4. Robo Advisors
Betterment, SigFig and Wealthfront are three large robo-advisor brokerages and have
grown tremendously since their start up days. Robo-advisors offer computer-
generated financial advice in place of a human financial advisor. Often times the robo-
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advisor service requires users to take a quiz to determine their financial status and
overall goals and then provides them with a suggested portfolio.
Previously, financial advice was only available to people with a wealth manager and
that’s exactly why robo-advisor brokerages like Betterment or Wealthfront are so
attractive to consumers. These robo-advisor FinTechs and other smaller ones provide
investment advice directly to the consumer cutting out the need for the middleman (a
wealth manager). By doing so these companies have created a service more
accessible, easier to use, and cheaper for the consumer.
Larger banks have already jumped at the opportunity to capitalize on the success of
robo-advisors by launching their own robo-advising services such as Bank of
America’s Merrill Guided Investing or Wells Fargo’s Intuitive Investor which was
created by SigFig and launched in 2017.
5. Simplified payment services
Some digital payment innovations have been made possible through advances in
payment network technology. Payment accounts can now be identified by email
address or mobile number, rather than account numbers and sort codes, streamlining
the payments process.
In the UK, Paym enables smartphone users to securely pay for goods and services by
using the recipient’s phone number. It is available to customers with current accounts
at 15 UK banks and building societies.
Users register to use Paym within their online banking app then enter the name and
amount they want to pay. The app will automatically open your phone’s contact list to
add the recipient. If the recipient isn’t registered with Paym, they receive a text saying
someone has attempted a payment to them, giving them the option to register.
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6. Paying with personal devices
The ubiquity now enjoyed by smartphones has driven the development and uptake of
a number of different digital payment services.
For example, digital wallets that are stored on devices and linked to bank accounts or
payment cards are being used to make online purchases and to buy items from
physical shops through contactless technology.
Tech companies have played a role in this, with Apple Pay making it easier to add
payment cards and to authenticate payments via the iPhone fingerprint scanner.
Amazon and Google also offer digital wallet functionality via mobile.
The use of personal devices for payments is now moving beyond smartphones, with
many wearable devices offering the functionality.
Peer-to-peer transactions
These types of payments make sending and receiving money easier, enabling people
to split restaurant bills, pitch in for a collective gift, or pay back a loan from a friend.
They are made possible by apps that connect to your bank account or a credit or debit
card and quickly transfer money to your chosen recipient. Many of these apps also
include social features, such as messaging or sharing, while others are built-in features
of social platforms.
The best-known peer-to-peer mobile app is probably PayPal, which enables users to
quickly transfer money between PayPal accounts for a small fee. Users enter the
recipient’s email address, set the amount and hit ‘Send’.
Google Pay lets users store and send money to friends and businesses, as well as pay
in shops and for public transport in some cities, such as Portland, Oregon.
Facebook’s Messenger app also allows users to transfer money to friends. Users just
add their debit card, enter the amount and message the recipient. However, like
Google Pay, money can take a few days to transfer.
28
Zelle is a newer arrival. Users can send money to anyone with a Zelle account,
regardless of who they bank with. Transfers are instant and there are no fees.
29
1.6 HISTORY
The fintech revolution begins in the 1800s
Fintech (1860): The Pantelegraph was invented
The history of financial innovation goes as far back as the 180s when a device known
as ‘The Palentelegaph’ was invented by Giovanni Casselli.The device was used to
verify signatures by sending and receiving transmissions on telegraph cables, this
invention is widely regarded to be the first step in the journey towards the modern
financial services. Lnown for being extremely slow, a sheet of paper with 25
handwritten words took about 108 seconds to transmit.
Fintech (1880): Using charge plates and charge coins for credit
The next turn in the fintech revolution took place in the late 1800s, when consumers
and merchants began exchanging goods and services for credit using items known as
charge plates and charge coins. Used until the early 1960s, the charge plates were
aluminium or white metal plates embossed with a customer’s name and address on the
front, and a paperboard insert on the back with the issuer’s name and cardholder’s
signature. Charge coins bore the customer’s identification number and an image
associated with the vendor and were roughly the same size and shape as modern coins.
According to a paper by Arneris, Barberis & Ross the key periods in the timeline of
fintech are:
30
Fintech 1.0 (1886-1967) is about infrastructure
This is an era when we can first start speaking about financial globalization. It
started with technologies such as the telegraph as well as railroads and steamships
that allowed for the first time rapid transmission of financial information
across borders.
(1918- 1970): The invention of fedwire
The key events on this timeline include first transatlantic cable (1866)
and Fedwire in the USA (1918), the first electronic fund transfer system, which
relied on now-archaic technologies such as the telegraph and Morse code.
(1919): An important book was released linking finance and technology
The economist John Maynard Keynes, wrote about the link between finance
and technology in his book ‘The economic consequences of the peace’.
(1950): Diner’s club introduced a credit card
The 1950s brought us credit cards to ease the burden of carrying cash. First,
Diner’s Club introduced theirs in 1950, American Express Company followed
with their own credit card in 1958.
(1960): Quotron allowed stock market quotes to be shown on a screen
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Quotron was the first product to allow stock brokers and money managers stock
market quoteson an electronic screen instead of a printed ticker tape. Because of
this, the brokers could receive up-to-the-minute prices for securities.
(1966): Telegraph replaced by Telex network
Any user on any Telex exchange could deliver messages to any other user all
around the world. This flexibility opened the doors for global communication of
financial transactions and information.
Fintech 2.0 (1967-2008) is about banks
This period marks the shift from analog to digital and is led by traditional
financial institutions.
(1967): First ATM installed by Barclays bank
It was the launch of the first handheld calculator and the first ATM installed
by Barclays bank that marked the beginning of the modern period of fintech in
1967.
(1971): NASDAQ established
There were various significant trends that took shape in the early 1970s, such
as the establishment of NASDAQ , the world’s 1st digital stock exchange, which
marked the beginning of how the financial markets operate today.
In 1973, SWIFT (Society For Worldwide Interbank Financial
Telecommunications) was established and is to this day the first and the most
commonly used communication protocol between financial institutions facilitating
the large volume of cross border payments.
(1982-1983): Evolution of e-trade and online banking
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The 1980s saw the rise of bank mainframe computers and the world is
introduced to online banking, which flourished in 1990s with the Internet and e-
commerce business models. E-trade originally founded under the name
Tradeplus, became the first online stock brokerage firm in 1982. In 1983,
customers of the Nottingham Building society were the first to get access to
online banking. Online banking brought about a major shift in how people
perceived money & their relationship with financial institutions.
By the beginning of the 21st century, banks’ internal processes, interactions with
outsiders and retail customers had become fully digitized. This era ends with the
Global Financial Crisis in 2008.
Fintech 3.0 (2008-Current) is about start-ups
As the origins of the Global Financial Crisis that soon morphed into a general
economic crisis become more widely understood, the general public developed
a distrust of the traditional banking system. This and the fact that many
financial professionals were out of work, led to a shift in mindset and paved a
way to a new industry, Fintech 3.0. So, this era is marked by the emergence of
new players alongside the already existing ones (such as banks).
(2009): Release of Bitcoin
The release of Bitcoin v0.1 in 2009 is another event that has had a major
impact on the financial world and was soon followed by the boom of different
cryptocurrencies (which, in turn, was followed by the great crypto crash in
2018).
(2011): Google Pay send developed
Another important factor that shaped the face of fintech is the mass-market
penetration of smartphones that has enabled internet access for millions of people
33
across the globe. Smartphone has also become the primary means by which
people access the internet and use different financial services. 2011 saw the
introduction of Google Wallet, followed by Apple pay in 2014.
(2017): Smile to Pay service introduced by alibaba
This enabled users to pay simply by smiling at a 3D camers
34
1.7 TOP MARKET COMPETITORS
1. PAYTM
Paytm is the leading digital payment gateway and digital wallet in India, providing a
host of payment services to consumers and businesses. Paytm offers varied payment
services such as mobile recharges, utility bill payments, movie tickets, bus, train, and
flight tickets, loan payments, insurance, forex, etc. Consumers can link their bank
accounts and credit cards to Paytm to enjoy seamless payments at various retail
markets and online avenues.
A subsidiary of parent company One97 Communications, Paytm has been credited

with launching QR based mobile payments in the country. It provides payment
solutions to more than 7 million merchants and has millions of registered users. Paytm
has emerged as a significant contributor in achieving the Digital India dream that is
being pursued aggressively by the Indian government.
History:
Every success story has the trail of a difficult and challenging journey,
something that applies to Paytm as well. The credit for creating the success for
Paytm goes to its founder Vijay Shekhar Sharma, who overcame numerous
challenges in his entrepreneurial journey. Vijay faced challenges in education
as well since he had limited knowledge in English. This prevented him from
taking competitive exams such as IIT. However, he took a fascination for
computer programming and soon nurtured the dream to make it big in Silicon
Valley.
35
While trying to launch One97 Communications, Vijay faced significant
funding issues and he had to take costly loans. He had to work hard to be able
to repay the costly loans. However, with the government's increased focus on
digitization, Paytm grew exponentially and attracted a host of investors. Paytm
is currently valued at more than $10 billion. It has also launched other
products such as Paytm Mall and Paytm Payments Bank. The license to
operate the payments bank was provided by RBI in 2015.
Funding:
Paytm has received multi-million dollar funding from top investors such as
Alibaba Group, Softbank, Ant Financial, SAIF Partners, and Mountain
Capital.
Acquisitions:
Paytm has made various acquisitions over the years such as Near.in, Shifu,
EduKart, Shopsity, Insider.in, Little, nearbuy, TicketNew, Cube26, NightStay,
and Balance.
Competition:
Paytm competes with other digital payment service providers such as

MobiKwik, Freecharge, Payumoney, Oxigen, Rechargeitnow, etc. All other
digital wallets introduced by various businesses are also actively competing
with Paytm.
About the Founder:
36
Paytm was founded by Vijay Shekhar Sharma, who currently serves as the
company's CEO. He has been ranked the youngest billionaire in India. The
achievement came in 2017 and was conferred by Forbes that estimated Vijay's
worth at $1.3 billion. Vijay is an alumnus of Delhi College of Engineering.
Prior to launching One97 Communications in 2000, Vijay had worked at
Startec Global Systems, India Today Group Online, Intersolutions India Pvt
Ltd and RiverRun Software Group.
2. PHONEPE
The PhonePe app is available in over 11 Indian languages. Using PhonePe, users can
send and receive money, DTH, recharge mobile, data cards, make utility payments,
buy gold and shop online and offline. In addition PhonePe also allows users to
book Ola rides, pay for Redbus tickets, order food on Freshmenu, eaf,fit and avail
Goibibo Flight and Hotel services through microapps on its platform.
3. MOBIKWIK
MobiKwik is an issuer-independent digital financial services platform, the company

has forayed into various segments of the fintech ecosystem including digital wallets,
wealth management, insurance and more. Low customer acquisition cost, inbuilt
scoring model, and quick disbursal of loans have been the key differentiators for
MobiKwik. MobiKwik was one of the first to disburse a loan amount in a matter of 90
seconds.
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4. PAYU
PayU is a digital payments gateway and service provider focussed on simplifying

payments for small and medium merchants by providing technology to fulfil online
transactions. PayU has a multi-functional mobile app which allows online businesses
to accept and process payments. Merchants can use the app to monitor their business
performance and request for payments from customers and vendors. PayU provides its
services in over 17 countries.
5. POLICYBAZAAR
PolicyBazaar is an insurance aggregator which was started with the aim of providing
transparent and accurate insurance information to consumers. A platform where
consumers could not only understand the tools which would suit them best for
insurance but also a platform on which they could compare products and choose the
most viable option.
Reliability and security are two pillars of the company, and all communications are
recorded for auditing purposes. PolicyBazaar claims a 100% YOY growth, since its
inception catering to more than 100 Mn consumers.
6. ETMONEY
ETMONEY is India’s largest app for financial services that is simplifying the
financial journey of new-age Indians. Consumers use ETMONEY to invest in Zero-
commission Direct mutual funds for Free, protect their families with unique Insurance
solutions & use ETMONEY Credit Card to take instant loans at low-cost. Growing at
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340% yearly, combined with multiple innovative solutions, it has grown to 7Mn users
from more than 1300+ Indian cities and is driving more than $500Mn of non-payment
annual transaction volume on its platform.
7. PAISA BAZAAR
Paisabazaar is a marketplace for all types of loans, credit cards, and investment
products in India that helps to compare and choose from various financial products
across categories such as personal loans, home loans, credit cards, education loans, car
loans, savings accounts, and mutual funds.
8. CLEARTAX
ClearTax offers taxation and financial solutions to individuals, businesses,

organizations and chartered accountants in India.
9. PINELABS
Pine Labs is a provider of retail POS (Point of sale) solutions that simplify payment
acceptance, while creating business opportunities for issuers, merchants, and brands to
connect with consumers.
10. LENDINGKART TECHNOLOGIES
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Lendingkart Technologies is a fintech startup in the working capital space that
developed technology tools based on big data analysis which facilitates lenders to
evaluate borrower’s creditworthiness and provides other related services.
11. CAPITAL FLOAT
Capital Float is an online platform that provides working capital finance to SMEs in
India.
12. FREECHARGE
Freecharge is India’s digital payments platform where you can make prepaid, post-
paid, DTH, and electricity bill payments.
13. AYE FINANCE
Aye Finance is a non-banking finance company which offers loans to profitable

micro, small, and medium enterprises (MSMEs).
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1.7 SWOT ANALYSIS OF USING TECHNOLOGY FOR
FINANCIAL TRANSACTIONS
Strengths
The advantages of using technology for financial transactions are various. They are:
 By making the interaction between consumers and financial services, as well

as between financial service providers, easier and simpler,
 Using technology for financial transactions offers significant potential to
enhance efficiencies
 Reduce costs
 Modernise financial infrastructure
 Enable more effective risk management
 Expand access to financial services across a range of different areas including
lending, payments, personal finance, money transfer, and insurance.
Weaknesses
 The privacy of personal information provided by consumers online is under
the spotlight these days. The recent data breach at Facebook is a case in point.
This issue is particularly relevant for the Fintech sector as is the risk of fraud
or financial risks associated with consumers not fully understanding the new
financial products.
Opportunities
 Derisking: The ‘de-risking’ phenomenon has become an existential threat to
many small states in the Commonwealth, especially in the Caribbean and the
Pacific. Fintech could potentially offer solutions to some of the key drivers of
de-risking such as ‘Know Your Customer’ policy, or eliminate the need for
corresponding banking relationships altogether.
 Cost: The declining cost of internet services and growing mobile and
smartphone penetration in small and developing countries also provide an
41
excellent opportunity to leverage Fintech to promote financial inclusion
amongst the estimated two billion people who remain without access to formal
financial services. Kenya’s M-Pesa is one commonly cited example.
 While many Central Banks are actively promoting Fintech through ‘sandbox’
approaches, the existing regulatory barriers are helping banks to maintain the
status quo. The Fintech and the traditional banking sector, however, need not
always compete but can also complement and learn from each other, forging
new partnerships for the efficient delivery of financial services.
Threats
 Cybercrime can potentially undermine the integrity of the entire financial
system. This is perhaps the main reason why some Central Banks are reluctant
to embrace Fintech more broadly. In the Commonwealth, many small and
developing countries lack the capacity and infrastructure to safeguard
cybersecurity. There are also concerns that many Fintech start-ups are too
focussed on launching their product quickly, without paying due attention to
security measures.
 Then, there is a potential abuse of Fintech. Without proper regulation, easy
access to finance can encourage risky behaviours like excessive borrowing and
high personal debt accumulation. There is also some legitimate concern about
market competition. A few early entrants in the market can get too large too
soon and can wield considerable monopolistic power. On the other hand, too
many entrants providing similar services can also crowd the market and make
supervision more difficult. This is especially true for many small and
developing countries where the rise of the sector can stretch already limited
regulatory and supervisory capacity.
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CHAPTER 2
RESEARCH METHODOLOGY
43
2.1 OBJECTIVES:
1. To study awareness and use of technology for making financial transactions.

2. To study growth of technology used for making financial transactions
3. To study whether people prefer using technology for financial transactions
over traditional financing methods.
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2.2 HYPOTHESIS
H1: There may be a significant awareness and use of technology for making financial
transactions
H01: There may not be a significant awareness and use of technology for making
H2: There may have been a significant growth in technology for financial transactions.
H02: There may not have been a significant growth in technology for financial
transactions.
H3: People may prefer using technology for financial transactions over traditional
financing methods.
H03: People may not prefer using technology for financial transactions over traditional
financing methods.
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2.3 RESEARCH QUESTIONS
1. Is there a significant awareness and use of technology for making financial

transactions?
2. Is there a significant growth in technology used for making financial

transactions?
3. Do people prefer using technology for financial transactions over traditional

financing methods?
46
2.4 SCOPE OF STUDY
1. The research’s main focus is on studying the use and growth of technology that is
used for making financial transactions. This covers all the methods of e-payments
system i.e. E-wallets, Online banking, smart cards, Card services, Micro payment
system and e-cheques. Other financial services through technology that do not involve
making transactions are excluded from this study (eg. Robo advisors)
2. The research covers study on use and growth of technology for making financial
transactions among the general public of Dadar and Worli and is not focused on a
specific group of persons.
3. The study also covers determination of awareness about technology that is used for
making financial transactions among the general public.
4. The study covers determination of advantages and disadvantages of making e-

transactions and their level of effectiveness.
47
2.5 LIMITATIONS OF THE STUDY
This project had several limitations. The limitations were as follows:
1. Sample size: The survey was filled by only 52 people from Dadar and Worli.
2. Time: The time to collect primary data was limited. Data was collected only in 1
week.
3. Primary data collection was done using survey method and hence, responses may
not be completely accurate. Respondents may not be fully aware of their reasons for
any given answer. Responses also lack detailed information and hence, reasons behind
some responses are assumption based.
4. Project is prepared on the general topic of ‘Use and growth of technology used for
financial transactions’ and thus, is not focused on a specific company, service or
group of people.
5. The research’s main focus is on studying the use and growth of technology that is
used for making financial transactions. This covers all the methods of e-payments
system i.e. E-wallets, Online banking, smart cards, Card services, Micro payment
system and e-cheques. Other financial services through technology that do not involve
making transactions are excluded from this study (eg. Robo advisors)
48
2.6 SOURCES OF DATA COLLECTION
A. Primary data: Primary data is data that is collected from first-hand sources.
Primary data was collected by using the survey method. A structured questionnaire
was designed for the general public of Dadar and Worli. The questionnaire was
divided into two parts, the first part being questions on personal and demographical
details and the second part being research questions.
B. Secondary data: Secondary data was collected from websites, journals, etc.
Extensive use of the internet was done to gather the information and arrive at the
conclusion.
2.7 SAMPLE SIZE
Structured questionnaire that was circulated, was filled by 52 respondents.
2.8 LOCATION OF STUDY
Respondents were random people of Dadar and Worli.
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2.9 TABULATION OF DATA
Sample distribution:
Gender distribution:
Males Females Total Percentage of Percentage of

males females
19 32 52 36.54% 61.54%
Table 1; Source: Primary data
1 respondent preferred not to say.
Age distribution in percentage:
Age groups Percentage of respondents

15-18 3.8
19-23 67.3
24-31 9
32-40 3.8
41 and above 16.1
Occupation distribution in percentage:
Occupation Percentage
Student 69.3
Business 3.8
Service 23.1
Unemployed 3.8
Qualification distribution in percentage:
50
Qualification percentage
8th passed 3.8
10th passed 0
12th passed 46.2
Graduate 31
Post- Graduate 19
51
2.10 TECHNIQUES AND TOOLS
As mentioned earlier, "Questionnaire" (a technique or a method use for obtaining

specific information about a defined topic) was used to collect the primary data. This
questionnaire contains only close-ended questions (questions wherein respondent has
to select based on the options provided). Questionnaire that was floated has been
attached.
52
CHAPTER NO. 3
LITERATURE REVIEW
53
Article 1:
Author: Gary Hwa
Title: Eight ways FinTech adoption remains on the rise
Source: ey.com
Date of publication: 3 June 2019
Date of accession: 20 December 2019
The findings show that various factors are driving the FinTech space forward –
including increasing consumer and SME familiarity with FinTech products and
services, attractive rates and increasing ease of portability to a new account. But with
adoption now also increasingly happening in the business market, there is a growing
opportunity for FinTech firms, incumbents and non-financial organizations alike to
seize the wave of FinTech disruption. With signs of rising trust in the concept of
FinTech from consumers and business alike, the growth of the sector shows no sign of
letting up.
Article 2:
Author: Casey Mulligan, Xavier X.
Title: Adoption of financial technologies
Source: The National Bureau of Economic Research
Date of publication: March 1996
This study concludes that the important decision relating to investing in interest
bearing securities is not making decisions relating to holding fraction of assets to be
held in interest bearing securities but to make decisions relating to whether to hold
any amount of interest bearing securities at all. The authors call this decision, the
decision “to adopt the financial technology” or the “extensive margin” decision. The
54
benefit of adopting financial technology will typically be the amount of interest
income that would otherwise have been foregone.
Article 3:
Author: D O’Mahony, M peirce, H Tewari
Title: Electronic payment systems
Source: Artech house
Date of publication: 1 Jan 2001
Problem of making e-payments are that confidential data such as card number,
bank account, etc. is known to the merchant. The solution to this problem would be to
build up high trust merchant brands (eg. Amazon) or to use independent third parties
as payment service providers (eg. Paypal, cliackandbuy, etc). Forms of payment in e-
commerce can be- prepaid, pay now, pay later.
Article 4:
Author: David Varga
Title: Fintech, the new era of financial services
Source: Researchgate
Date of publication: November 2017
The article fills a gap in current research by providing a resource-based analysis

of the key value drivers behind the creation and growth of fintech companies. The
exponential growth in the number of fintech companies can be explained with
55
reference to at least three distinctive evolutionary forces. First, companies realized
that technology (and especially software) were creating a great opportunity to
innovate new services and products. The ecosystem built around IT technology, the
internet and mobile phones enabled companies to grow quickly and sometimes
exponentially, while marginal costs decreased with each additional software user.
Second, the success of technology companies proved that new business models and an
open approach to cooperating with the ecosystem and other industries offered
lucrative business opportunities. Third, users were placed at the center of design in
new business models and services, resulting in more user-friendly services. The
systemic use of prototyping and design created services that offered a faster, cheaper
and frictionless experience for users. These new designs enabled services to succeed,
and many times expand virally to new users.
Article 5:
Author: Neha Khurana
Title: A Study of Impact of Financial Technology on Banking Sector in India
Source: ijmr.net.in
Date of publication: 8 August 2018
Date of accession: 24 Dcember 2019
India is confidently moving up the Fintech ladder and provides plenty of opportunities
for Fintech startups to enter the diversified market and be successful provided careful
solution-customer match and a strong go-to-market strategy is in place. The two broad
segments where Fintech is most active in India are payments and lending. Out of the
more than600 Fintech startups currently active in India, around 40% are payments and
lending startups. The development of Fintech sector has also given a boost to overall
economy of India. But still there are some hindrances related to e security and the
usage rate among unbanked population. So, the initiatives taken must not be faded
away because of these little but not the least factors.
56
Article 6:
Author: Peterson K. Ozili
Title: Impact of digital finance on financial inclusion and stability
Source: ScienceDirect
Date of publication: December 2018
This article provides a discussion on digital finance and its implication for financial
inclusion and financial stability. Digital finance through Fintech providers has positive
effects for financial inclusion in emerging and advanced economies, and the
convenience that digital finance provides to individuals with low and variable income
is often more valuable to them than the higher cost they will pay to obtain such
services from conventional regulated banks. Despite the benefits of digital finance,
this article has highlighted some challenge that digital finance pose for financial
inclusion and financial stability.
Article 7:
Author: Alhaji Abubakar Aliyu, Rosmaini Bin HJ Tasmin
Title: The Impact of Information and Communication Technology on Banks’

Performance and Customer Service Delivery in the Banking Industry
Source: semanticscholar
Date of publication: 1 March 2012
This article addresses that, due to perceived security risk, lack of comfort with
computer technology, either due to lack of awareness or age factor, and a host of other
reasons that ICT did not appear to be significantly viable or accepted warmly or
quickly by consumers. Other researchers also found that despite all these factors
57
banks, themselves, have been unable to have provided efficient customer service
delivery because of which the clients who were even ready to adopt this delivery
channel did not turn up again to innovation, and banks couldn‟t successfully build the
required contents of electronic banking environment for consumers.
Article 8:
Author: Rory Van Loo
Title: Making Innovation More Competitive: The Case of Fintech
Source: scholarship.law.bu.edu
Date of publication: February 2018
Date of accession: 10 January 2020
The evolution of fintech has been so fast that it has highly raised competition in the
market. Intervention for financial competition may decide whether fintech produces
inefficient and dangerous firms or helps build a more affordable, accessible, and
stable financial system for all households. In the past, oil, gas, and electricity could be
treated as competitive commodities—refineries and utilities could purchase the
cheapest barrel of oil or kilowatt-hour of electricity. Now, however, there are
prescribed standards for how to produce “low carbon” or “renewable” power, such as
solar, splintering undifferentiated nationwide markets, and creating new opportunities
for energy companies to exercise market power in smaller market segments. The The
Federal Communications Commission (FCC) is tasked with extending licenses and
stabilizing ownership as Google Fiber challenges Comcast and Time Warner’s
Internet dominance. These and other regulatory spheres have unique missions and
structures, but they have common grounds to gain the full benefits of innovation.
58
Article 9:
Author: Anil S. Kavuri and Alistair Milne
Title: FinTech and the future of financial services: What are the research gaps?
Source: SSRN
Date of publication: 5 July 2018
The paper says that the 7 research gaps were as follows:
1) changing industrial structure and organisation of financial services
2) new forms of financial intermediation (alternative finance) such as loan-based and

equity-based crowdfunding
3) changing payments mechanisms including central bank digital currencies and the
shift to a cashless society
4) reaching vulnerable and excluded customers in both developed and developing

countries
5) computation, artificial intelligence and large-scale data processing in finance
6) the relationship between the new financial technologies and financial regulation
7) identity, security, data privacy and their regulation in financial services.
Article 10:
Author: Jamil Hammoud, Rima M. Bizri, Ibrahim El Baba

Title: The Impact of E-Banking Service Quality on Customer Satisfaction:
Evidence From the Lebanese Banking Sector
59
Source: Sage journals
Date of publication: July-September 2018
The main contribution of this study was that reliability, as a service quality variable,
was the main predictor of customer satisfaction in the market. With E-Banking
services still relatively new to Lebanon and, consequently, still below full
development and usage, the results of this study will contribute to a better
understanding of what and how Lebanese banks may leverage advancement in
information technologies to develop services that meet the expectations of Lebanese
customers. It is recommended that ways to increase the reliability of “E-Banking”
service be investigated, particularly within the Middle East. Moreover, the meaning of
“reliability” may differ across countries even within the region, which warrants a
careful investigation of this construct, and others, in multiple cultural contexts.
Article 11:
Author: Zlatko Bezhovski
Title: The Future of the Mobile Payment as Electronic Payment System
Source: IISTE
Date of publication: 2016
This study finds that customers are increasingly using mobile payment methods for
their routine online purchases and for their on-site purchases as well. With growing
advanced technology that supports mobile transactions and makes them transparent
and more convenient, consumers have developed their trust and habits on using
mobile payment systems. The changing behaviour of consumers making a shift from
traditional payment methods to more advanced online payment systems is quite
60
evident in banking and retailing, and with most of the mobile devices available. Since
it is evident that the mobile devices became unavoidable part of almost everyone’s life
form one side and the opportunities this technology enables for online and offline
payment regarding convenience and security, it is unavoidable that the use of mobile
payment systems will further rise with ambition to surpass or even replace cash and
other cashless payment option. This research also concluded that for a promising
future of this industry, mobile payment systems have to be better integrated with
present telecommunication and financial infrastructures. Enhancing the compatibility
with a wide range of users, the use of latest technology and establishment of common
standards for various service providers, and overcoming the security and privacy
issues could help in facilitating faster adoption of electronic payment methods and
advance the rising market of mobile payments.
Article 12:
Author: Karamjeet Kaur and Dr. Ashutosh Pathak
Title: E-Payment System on E-Commerce in India
Source: IOSR Journals
Date of publication: April 2018
The study analyses that E-Payment system is secure there should be no threat to the
user credit card number, smart card or other personal detail, payment can be carried
out without involvement of third party. It makes E payment at any time through the
internet directly to the transfer settlement and form E-business environment. Studies
have been carried out on E-Payment system .E-Payment system is an integral part of
electronic commerce. An efficient payments system reduces the cost of exchanging
goods and services, and is indispensable to the functioning of the interbank, money,
and capital markets.
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Article 13:
Author: Ajeet Singh, Karan Singh, Shahazad, M.H Khan and Manik Chandra
Title: A Review: Secure Payment System for Electronic Transaction
Source: International Journal of Advanced Research in Computer Science and

Software Engineering
Date of publication: March 2012
The study reviews a secure electronic payment system for Internet transaction. The
electronic payment system is to be secure for Internet transaction participants such as
Payment gateway server, Bank sever and Merchant server. The security architecture
of the system is designed by using Many Security Protocols and techniques, which
eliminates the fraud that occurs today with stolen credit card/debit card payment
information and customer information. Electronic commerce involves the exchange of
some form of money for goods and services over the Internet but today, Internet is an
insecure and unreliable media. The asymmetric key cryptosystem Methodology with
help of Security Protocol, secure communication tunnel techniques can protect
conventional transaction data such as account numbers, amount and other information.
Article 14:
Author: Shaun O'Brien
Title: Consumer Preferences and the Use of Cash: Evidence from the Diary of
Consumer Payments Choice
Source: FRBSF
Date of publication: July 21, 2014
62
The study provides new evidence on the determinants of cash usage for small value
payments and particularly how consumers’ stated payment instrument preference and
the amount of the purchase affect their propensity to use cash. Participants who stated
a cash preference have a predicted probability of a cash payment of 80% overall. The
result suggests cash continues to play a large role as a payment instrument especially
in lower value transactions for all demographic groups.
Article 15:
Author: Kevin Foster, Scott Schuh, and Hanbing Zhang
Title: The 2010 Survey of Consumer Payment Choice
Source: Bostonfed
Date of publication: November 2013
In this study, it was analysed that the amount of cash withdrawals, and cash holdings
by consumers decreased moderately in 2010. Credit card payments by consumers
increased 15 percent, reversing more than half the 2009 decline, and the steady trend
decline in papercheck payments by consumers continued. Debit cards and cash
continued to account for the two largest shares of consumer payments and consumer
adoption of all types of prepaid cards increased notably in 2010.
Article 16:
Author: R. Elavarasi
63
Title: Customer Awareness and Preference towards E-Banking Services of Banks
Source: Semantic Scholor
Date of publication: 2014
Date of accession: 27 February 2020
The article studies about customer awareness and preferences of e-banking services of
banks. The researcher has identified which commercial bank provides better service
with regards to e-banking services to customers and also identified satisfaction level
of customer view about internet banking website of banks. The data analysis shows
that age, educational qualification, occupation, income level of customer are
significant factor that decide usage of e-banking services of various banks in the study
area
Article 17:
Author: Ari Hyytinen – Tuomas Takalo
Title: Consumer awareness and the use of payment media
Source: SSRN
Date of publication: 27 February 2008
It was analysed in this article that some consumers use only one medium when paying
for their point-of-sale transactions, while others use many. This pattern reflects the
diffusion of new payment media, because a payment method innovation is typically
first used simultaneously with the established methods. These results suggest that
64
increasing consumer awareness may have been underlying the rise of debit card use
around the world. It could also speed up the adoption of new means of payment, such
electronic money and mobile payments. To the extent that antitrust concerns in the
market for payment media stem from the lack of information, improving consumer
awareness could be a remedy.
Article 18:
Author: Nouman Anwar Dar
Title: Awareness of electronic banking in pakistan
Source: www.umt.edu.pk
Date of publication: unknown
The author has focused on growth and awareness of electronic banking in Pakistan.
Electronic banking is today’s need as it provides easy way to monitor an account.
Most of the commercial banks in the country switched to the convenience ways in
accessing the accounts of the customers and giving them the freedom for the easy
access. Electronic distribution channels provide alternatives for faster delivery of
banking services to a wider scope of customers. But despite all the opportunities and
benefits created by the e-banking, there are still many challenges that are present in
the financial sector. There are also some limitations of e-banking as it requires
awareness, knowledge and skills to operate it.
Article 19:
Author: Manqele G. Siduduzo
65
Title: University Students’ perceptions on the use of e-payment systems
Source: siduduzo.wordpress.com/
Date of publication: 29 October 2015
The author in this article has analysed why students are not adopting e-payment. The
study showed lack of awareness in implementation of electronic payment systems at
universities. The study recommends educating students and promoting epayment at
universities. This study adopted a descriptive survey research design approach.
Students from Durban University of Technology were chosen as respondents for this
study. The findings showed that majority of respondents agreed electronic payment
systems consist of fraud and there is no clear policies on customer data protection.
Also, the study showed that epayment is a reliable method that maintains privacy.
Article 20:
Author: Rachna And Priyanka Singh
Title: Issues and Challenges of Electronic Payment Systems
Source: Semantic Scholor
Date of publication: 9 December 2013
The article analyses that Electronic payments are financial transactions made without
the use of paper documents such as cheques. Electronic payments include debit card,
credit card, smart card, e-wallet, e-cash, electronic cheques etc. E-payment systems
66
have received different acceptance level throughout the world; some methods of
electronic payments are highly adopted while others are relatively low. This study
aimed to identify the issues and challenges of electronic payment systems and offer
some solutions to improve the e-payment system quality
67
CHAPTER NO.4
DATA ANALYSIS
68
People's awareness about methods of financial
transactions through technology
Micro payment systems
E- Cheques
Online Banking
Smart Cards
Card services
E-Wallets
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Bar Chart 1; Source: Primary Data
The different methods of e-payments are: E-wallets, Online banking, Card services
(debit cards, credit cards, ATM), Smart Cards, E- cheques and Micro Payment
systems. When questions about awareness about these methods were asked, responses
as per the above chart were received. Respondents were the most aware about Card
services and online banking services as these are the most traditionally used methods
of e-payments. The most modern method of e-payments was in the third place which
was e-wallets, followed by smart cards and E-cheques. Micro payment system was the
method that respondents knew the least.
From the analysis above, it is seen that the method of micro payment system
needs to increase its awareness among people.
69
Have you ever used technology for
financial transactions?
12%
6%
Yes
No
Maybe
83%
Pie Chart 1; Source: Primary data
From the chart above, it can be seen that a large portion of respondents have used
technology for making financial transactions which was 83%. 12% respondents were
neutral and only 6% had never used technology for making financial transactions.
70
Frequency of people to use technology for
8%
14%
19% Very frequently

Frequently
Occassionally
31% Rarely
Not at all
28%
The chart above shows the frequency of people to use technology for making financial
transactions. A variety of responses can be seen. The chart reflects that 14% of the
respondents use technology for transacting financially very frequently and 31% use it
frequently. A majority of respondents say that they use it occasionally and only 8% do
not make use of technology for making financial transactions at all.
From the analysis above, it can be seen that a high number of respondents make use
of technology for making financial transactions in their day to day life. A minority of
respondents never or rarely use it.
71
Methods of financial transactions through
technology that people have actually used
Micro payment systems
E-cheques
Smart cards
Online banking
Card Services
E-Wallets
0% 20% 40% 60% 80% 100%
Bar chart 2; Source: Primary data
In bar chart 1, people were asked about how aware they were about different types of
e-transactions. Bar chart 2 shows responses when people were asked about which
types of e-transaction were they actually using. A major difference was seen when
people’s awareness and people’s actual usage of these methods of making e-
transactions, was compared.
72
Purpose for which people use technology
for financial transactions
Withdrawing
Borrowing
Investing
Lending
Payments
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
In the chart above, it is seen that a large portion of respondents used technology for
making payments which was 83%, followed by withdrawing, which was 66%. As
compared to making payments, a very small portion used technology for borrowing,
lending or investing purposes. 21% respondents used technology for investing, 20%
used it for borrowing and 17% for lending.
73
From the analysis above, it is seen that respondents are very well aware about most of
the methods of e-transactions, e-banking and card services being the most known of
them all. It was also seen that a very high number of respondents had used technology
for financial transactions at least once in their life. When it came to the frequency of
people using different methods of e-transactions, it was seen that a majority of
respondents used it frequently or very frequently, whereas, a small portion used it
rarely or not at all. The most used methods were seen to be card services and e-wallets
and technology was used the most for making payments and withdrawing.
Hypothesis testing:
H1 stated that there may be a significant awareness and use of technology for financial
transactions and H01 stated that there may not be a significant awareness and use of
technology for financial transactions. From the above explanation it is clearly seen
that People are significantly aware and use technology for making financial
transactions. Hence H1 accepted and H01 rejected.
74
Use of technology for financial transactions is
significantly growing
3% 3%
20% 11% Strongly disagree

Disagree
Neutral
Agree
Strongly agree
63%
The pie chart above reflects responses when people were asked whether they thought
if the use of technology for making financial transactions was significantly growing. It
was clearly seen that a very large portion of respondents believed that it was
significantly growing. With biggest market competitors’ strong marketing and reliable
services, the growth in this industry is only increasing. Only 6% of respondents
strongly disagreed or disagreed to the statement. 11% of respondents stayed neutral.
63% agreed and 20% strongly agreed.
75
Rate the following methods according to their
growth rate in past few years
50%
45%
40%
35% None
30% Low
25% Moderate
20% High
15% Very high
10% I don't know
5%
0%
E-Wallets Card services Online banking
Column chart 1; Source: Primary data
40%
35%
30%
None
25%
Low
20% Moderate
15% High
Very high
10%
I don't know
5%
0%
Smart cards E-cheques Micro payment
systems
Column chart 2; Source: Primary data
76
Column Chart 1 and column chart 2 reflects responses when people were asked to rate
the growth rate of different methods of e-transactions in the past few years. By
analysing this, current estimation of growth in each of the method can be done. In
column chart 1, e-wallet services, card services and online banking services were
asked about.
The highest growing financial service was seen to be e-wallets service where majority
of respondents thought that it was growing at a high rate. 24% of respondents thought
that the growth rate was moderate and 18% thought that it was very high. Only 6% of
respondents thought that the growth rate was low.
Most respondents believed that card services were growing at a low rate, where only
14% of respondents thought that it was growing at a high or very high rate.
Majority of respondents thought that online banking services grew at a moderate rate
and 10% thought it grew at a high rate.
In column chart 2, smart cards, e-cheques and micro payment systems were asked
about.
In case of smart cards, 34% of respondents thought the growth rate was moderate and
32% thought that the growth rate was low. 32% did not know.
In case of e-cheques, majority of respondents preferred not to say, whereas, 34%

chose moderate growth rate, 32% chose low growth rate and 20% thought there was
no growth in use of e-cheques at all. E-cheques was seen to be one of the least
growing method of e-transactions. The reason can be lack of innovation in transacting
through e-cheques.
In case of micro payments system, a majority of respondents had no idea about the
growth rate as very less people are actually aware about it as seen in bar chart 1. 24%
of respondents though that the growth rate was moderate, 21% respondents thought
that growth rate was low and 20% thought that there was no growth. Micro payments
system was also seen to be as one of the least growing methods of e-transactions.
77
Technology for transacting financially is
designed to be a threat to, challenge, and
eventually take over traditional financial
services providers by being more active and
providing faster and/or better service.
3%
6% 6%
Strongly disagree
Disagree
Neutral
46% 39% Agree
Strongly agree
Pie chart 4 reflects the agreeability of respondents to the statement “Technology for
transacting financially is designed to be a threat to, challenge, and eventually take
over traditional financial services providers by being more active and providing faster
and/or better services”. By analysing the responses, future prediction of growth of
technology used for financial transactions can be done. It can be seen that 46% of
respondents agreed to the statement and 6% strongly agreed. Only 3% disagreed and
6% strongly disagreed. 39% of the respondents stayed neutral. This concludes that use
of technology for making financial transactions will continue to grow in the future.
78
By analysing the responses of pie chart 3, column chart 1, column chart 2 and pie
chart 4, some conclusion could be drawn. It was seen that people believed that use of
technology for financial transactions was significantly growing. It was also seen that
the most growing method of e-transactions were e-wallet services, whereas, the least
growing methods were e-cheques and micro payment system. It can also be sais that
Technology used for financial transactions will eventually challenge and later take
over traditional financing methods by providing faster and better services and will
continue to grow in the future.
Hypothesis testing:
H2 stated that there may have been a significant growth in technology for financial
transactions, whereas, H02 stated that there may not have been a significant growth in
technology for financial transactions. In the analysis above, it is clearly seen that use
of technology for making financial transactions has been growing. Hence, H2 accepted
and H02 rejected.
79
Disdvantages of implementing financial
Requirement of internet access
Hacking
Difficult to understand for beginners
Identity theft
Not accepted everywhere
0% 10% 20% 30% 40% 50% 60% 70% 80%
The bar chart above reflects responses to questions regarding disadvantages of

implementing financial transactions through technology. 67% of respondents felt that
the biggest reason why people tend to avoid doing e-transactions is hacking. 46% of
respondents felt the problem of identity theft being there while 45% of respondents
felt that making e-transactions is not universally accepted and should grow its
coverage area in all localities and sectors. 30% of respondents felt that requirement of
internet access brings problems to them and 27% felt that it is difficult to understand
for someone who is just starting to use technology for making financial transactions.
It could be seen that the top voted disadvantages were safety related and
companies must work on these safety issues to increase their customers.
80
Advantages of implementing financial
Offers on certain services (eg.

discounts)
Security
Faster transactions
Good response time
Easy to use
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
The bar chart above reflects responses to questions regarding advantages of

implementing financial transactions through technology. 82% of respondents believed
that the biggest advantage of using technology for making financial transactions was
that it resulted in faster transactions as all the time consumption of physically paying
was eliminated.65% of respondents felt that using technology for making transactions
was easy. Hence, more people found that it was easy to use than the people that
thought that it was difficult to use. Equal numbers of respondents were attracted to the
response time and the offers on availing of certain services in the form of discounts,
cash-backs, etc. A low number of respondents felt that their transactions were secure.
81
I would still prefer e-transactions over
traditional transacting methods after
comparing advantages with disadvantages
12% 6%
Strongly disagree
22% Disagree
Neutral
34% Agree
Strongly agree
26%
Pie chart 5 reflects the agreeability of respondents to the statement “ I would still prefer
e-transactions over traditional transacting methods after comparing advantages with
disadvantages”. Here, ‘traditional transacting methods’ would be financing methods that do
not involve use of technology. E.g. cash payments, paper cheques, etc. It was seen that 34% of
respondents agreed and 12 % strongly agreed to the statement. 26% remained neutral, 22%
disagreed and 6% strongly disagreed to the statement. The agree to disagree ratio was
approximately 1.7:1. Hence, it can be concluded that majority of people would still prefer e-
transactions over traditional transacting methods after comparing advantages with
disadvantages. However, a good sized portion of respondents would still chose traditional
financing methods.
82
By looking at the analysis above, some conclusions could be drawn. People were
asked to compare advantages with disadvantages of using technology for financial
transactions and later decide if they would still prefer using financial technology over
traditional financing methods. It was concluded that people would still continue using
technology for making financial transactions as they felt that the advantages
dominated the disadvantages. The elimination of time consumption was seen to be the
most attractive advantage, whereas, security related issues were seen to be the biggest
disadvantages.
Hypothesis testing:
H3 stated that people may prefer using technology for financial transactions over
traditional financing methods, whereas, H03 stated that people may not prefer using
technology for financial transactions over traditional financing methods. From the
analysis above, it is clear that people would still prefer using technology for financial
transactions over traditional financing methods. Hence, H3 accepted and H03 rejected.
83
CHAPTER NO. 5
CONCLUSIONS AND SUGGESTIONS
84
5.1. CONCLUSIONS
The study concludes that people are well aware about most methods of transactions
through technology. However, some methods like micro payments system, e-cheques,
etc. need to increase their awareness among people. Most people were seen to be
using technology for making transactions frequently which reflects how big of a role
e-transaction plays in lives of these people. The most used methods were seen to be e-
wallets, card services and online banking as people felt the requirement of using it in
some way in their day to day life. These methods were mostly used for making
payments and withdrawals. By the analysis of this study, it could be concluded that
there was a significant use and awareness of technology for making financial
transactions.
Use of technology for making financial transactions was also agreed to be growing at
a fast rate. E-wallets was the method that gained the most popularity in the last few
years, followed by online banking. Methods like micro payments system and e-
cheques were the least growing methods of making e- transactions. Also, most of the
people did not have any idea about the growth rate of these two methods, which may
be due to lack of awareness of them among the public. With the success of e-
transactions in the past, it was also believed that this success will be carried on in the
future.
People also believed that even though there were some existing disadvantages of
making e-transactions, the advantages were more dominant. On studying this scenario
further, it was observed that the main disadvantages were safety related i.e. hacking,
identity theft. Some people also believed that e-transactions should increase its range
of acceptance. People loved the speed of transactions and felt that e-transactions was
easy to implement.
The final conclusion of this study is that the use and growth of technology for
financial transactions has been significantly growing and will keep growing in the
future.
85
5.2 SUGGESTIONS:
The suggestions of this study are as follows:
1. All methods of transactions through technology must give their best when it
comes to publicity of these methods as, lack of awareness will ultimately result in
lack of use. Where some methods may be widely popular, there are some methods
that are not very popular among the customers. Methods like- micro payments
system, e-cheques, are those that need to increase their awareness among people.
2. To increase the awareness and use, innovation in these methods is also required.
When it comes to innovation, all types of services except e-wallets lack it.
3. Safety related issues have always been and will continue to be, a threat to the
functioning of e-payments system as a large portion of public feels unsafe when it
comes to hacking and identity theft. Companies must try their best to eliminate
this threat as much as possible for the maximum growth in business.
4. It is seen that many people from middle aged group to elderly, find it difficult to
use such technologies. Companies may look forward to fix that.
5. There is a requirement of broadening the area of acceptance of e-transactions.
6. Companies can make offers to customers for increasing their market size.
7. The most attractive advantage of using technology for making financial
transactions i.e. speed must be maintained in order to achieve growth objectives.
86
BIBLIOGRAPHY
https://www.getsmarter.com/blog/market-trends/the-history-of-fintech/
https://blog.epayments.com/the-best-digital-payment-innovations/
https://www.business2community.com/finance/four-digital-payment-innovations-will-
change-pay-2018-02045508
https://www.getsmarter.com/blog/market-trends/the-history-of-fintech/
file:///C:/Users/MyPc/AppData/Local/Microsoft/Windows/Temporary%20Internet%20Files/
Content.IE5/P0CBCGCB/35343978.pdf
https://en.wikipedia.org/wiki/Financial_technology
87
ANNEXURE
Q1. Age:
o 15-18
o 19-23
o 24-31
o 32-40
o 41 and above
Q2. Gender:
o Male
o Female
o Prefer not to say
Q3. Occupation:
o Business
o Service
o Student
o Unemployed
Q4: Qualification:
o 8th passed
o 10th passed
o 12th passed
o Graduated
o Post-graduated
Q6. Select those methods of financial transactions through technology that you are
aware of
o Electronic wallets (eg. Paytm)
88
o Card services (credit card, debit card, ATM)
o Internet banking
o Smart cards
o Electronic cheques
o Micro payment system
Q7. Have you ever used technology for transacting financially?
o Yes
o No
o Maybe
Q8. How often do you use technology for financial transactions?
o Very Frequently
o Frequently
o Occasionally
o Rarely
o Never
Q9. Select those methods of financial transactions through technology that you have
actually used (use)
o Electronic wallets (eg. Paytm)

o Card services (credit card, debit card, ATM)
o Internet banking
o Smart cards
o Electronic cheques
o Micro payment system
Q10. Select the purposes for which you use technology for financial transactions (use)
o Withdrawing
o Payments
o Lending
o Investing
o Borrowing
o Other
89
Q11. Use of technology for financial transactions is significantly growing.
o Strongly disagree
o Disagree
o Neutral
o Agree
o Strongly agree
Q12. Rate the following according to their growth rate in past few years
None Low Moderate High Very high I don’t know
Electronic
wallets (eg.
Paytm)
Card services
(credit card, debit
card, ATM)
Internet banking
Smart cards
Electronic
cheques
Micro payment
system
Q13. Technology for transacting financially is designed to be a threat to, challenge,

and eventually take over traditional financial services providers by being more active
and providing faster and/or better service.
o Strongly disagree
o Disagree
o Neutral
o Agree
o Strongly agree
Q14. What do you think, are the disadvantages of e-transactions?
o Not accepted everwhere

o Identity theft
90
o Difficult to understand for beginners
o Difficult to use in case of complex transactions
o Hacking
o Requirement of internet access
Q15. What are do you think, are the advantages of e-transactions?
o Easy to use
o Good response time
o Faster Transactions
o Security
o Offers on certain services provided (eg.discounts)
Q16. I would still prefer transacting electronically over traditional financing methods
after comparing advantages with disadvantages.
o Strongly disagree
o Disagree
o Neutral
o Agree
o Strongly agree
91

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"A STUDY ON USE AND GROWTH OF TECHNOLOGY USED

FOR MAKING FINANCIAL TRANSACTIONS"

University of Mumbai for partial completion of the degree of

B.Com (Accounting and finance)

Under the Faculty of Commerce

UNDER THE GUIDANCE OF

SASMIRA COLLEGE OF COMMERCE AND SCIENCE

Sasmira marg, Worli, Mumbai 400030

ACADEMIC YEAR 2019 – 2020

FOR MAKING FINANCIAL TRANSACTIONS"

University of Mumbai for partial completion of the degree of

B.Com (Accounting and finance)

Under the Faculty of Commerce

UNDER THE GUIDANCE OF

SASMIRA COLLEGE OF COMMERCE AND SCIENCE

Sasmira marg, Worli, Mumbai 400030

ACADEMIC YEAR 2019 – 2020

Name and Signature of Guiding Teacher:

Prof. Abeda Shaikh

Date of submission: 09-05-2020

Name and Signature of the learner:

Name and signature of the Guiding Teacher

Prof. Abeda Shaikh

The evolution of technology has resulted in facilitation of new modes of

CHAPTER TITLE PAGE

CHAPTER 1: 1.1. Types of financial transactions done using 13

1.7. Top market competitors 35

The emergence of Information and Communication Technology (ICT) had completely

E-banking: Electronic banking is a form of banking in which funds are transferred

Electronic banking relies on intricate computer systems that communicate using

Most traditional banks offer e-banking services as an additional method of providing

Micro- payment: A micropayment is an e-commerce transaction involving a very

c. ATM: An automated teller machine (ATM) is an electronic banking outlet that

ATMs are convenient, allowing consumers to perform quick, self-serve transactions

Financial technology, often shortened to fintech, is the technology and

Financial technology has been used to automate insurance, trading, banking

In trading on capital markets, innovative electronic trading platforms facilitate trades

Global investment in financial technology increased more than 2,200% from

The impacts are explained through the following points:

I. Fewer Bank Visits:

II. Quick Transactions:

III. Customer Service:

IV. Detecting Fraud:

 Avoid ATM Hacks:

1. Peer-to-Peer Payment Systems

2. Artificial Intelligence (AI) and Machine Learning

5. Simplified payment services

The fintech revolution begins in the 1800s

Fintech (1860): The Pantelegraph was invented

(1918- 1970): The invention of fedwire

(1919): An important book was released linking finance and technology

(1950): Diner’s club introduced a credit card

(1960): Quotron allowed stock market quotes to be shown on a screen

(1966): Telegraph replaced by Telex network

Fintech 2.0 (1967-2008) is about banks

(1967): First ATM installed by Barclays bank

(1971): NASDAQ established

(1982-1983): Evolution of e-trade and online banking

Fintech 3.0 (2008-Current) is about start-ups