Fintech Adoption in India and Its Role in Banking Sector Development
Manjunatha K. *
Department of Commerce, Rani Channamma University PG Centre, Vachana Sangama, Toravi, Vijayapur, Karnataka, India.
*Author to whom correspondence should be addressed.
Abstract
Fintech has been instrumental in accelerating India’s financial ecosystem by way of digitalisation in terms of payments, lending and regulatory aspects, which are redefining the structure and functioning of the banking industry. Thus, this paper sheds light on the factors influencing the adoption of fintech in India and analyses its contribution to the banking sector development. The study compiled secondary data from the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), National Institution for Transforming India (NITI) Aayog, industry reports, and scholarly literature, considering the time period of data from 2016-17 to 2024-25 and 2012 to 2023. Further, the compiled data has been analysed using charts with a few indicators of fintech adoption and banking development, such as Digital lending, UPI transactions and Credit disbursements through scheduled commercial banks. The findings indicate that there has been a significant impact on the adoption of fintech on account of India’s digital public infrastructure, favourable regulatory environment, technological innovations, and rising digital literacy. In addition, fintech augments banking efficiency, facilitates financial inclusion, strengthens credit access for MSMEs, and advances the overall financial system.
Keywords: Fintech, banking, adoption & development