BTL 815 Fintech and Techfin

 

The Banking Tutor’s Lessons

BTL 815                                                                   18-08-2025

Fintech  and Techfin 

FinTech and TechFin both deal with the intersection of technology and finance, but they differ significantly in their approach and origin. 

FinTech (Financial Technology) 

Origin: Primarily rooted in financial services. 

Approach: Financial institutions and specialized startups leveraging technology to enhance or replace traditional financial models. This includes things like mobile banking, online payments, digital lending, robo-advisors, and blockchain-based financial services. 

Focus: Developing innovative solutions within the financial sector, improving customer experiences, and increasing efficiency. 

Examples: Paytm, Square, Robinhood, Stripe, PayPal, PhonePe. 

2. TechFin (Technology in Finance) 

Origin: Driven by large technology companies. 

Approach: Technology companies, already established in various sectors, entering the financial space by integrating financial services into their existing platforms. They utilize their technological expertise, vast data, and extensive user bases to offer financial products and services.

Focus: Leveraging technology to provide advanced solutions and support the financial industry while meeting business demands, often embedding financial solutions into their existing ecosystem.

Examples: Google Pay, Amazon Pay, Jio Financial Services. 

Fintech and Techfin - Key differences 

Parameter	FinTech	TechFin
Compliance Focus	AML, KYC, transaction monitoring	Data use, platform behavior, embedded finance
Supervisory Body	Financial Regulators	Tech & Financial Regulators
Examples	Square, Robinhood, Stripe	Google Pay, Amazon Pay, Jio Financial Services

FinTech can be seen as finance utilizing technology, while TechFin represents technology companies entering the finance sector. 

Sekhar Pariti

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