Fintech is short for financial technologies. These disrupt the traditional financial services such as mobile payments, money transfers, loans, fund raising and asset management. It has come up in a big way as the digitisation has gained momentum.

In India, people are open to fintech. Out of the various banking channels, Gen Y and tech savvy customers, prefer mobile phones. Still, these is a long way to go to realise its full potential.

Banks borrow money, to lend it to the needy. Here traditional banks compete with fintech terms. Banks use data analytics to target the potential customers and customise their products. Without or with less human intervention, banks will provide quick services by using AI and robotics. It is faster to open accounts and process loans by digitisation. Banks can collaborate and co-invent with fintech firms. Though fintech firms are strong technologically, they have yet to gain trust among customers. Banks must also develop robust risk management tools and techniques.