Assessing the Market Readiness for Fintech Innovations in Private Sector Banks

Abstract

FinTech is giving banks new ways to stay competitive in the digital sphere. Banks may now function more effectively, spend less money, and provide better customer service thanks to fintech technologies. Banks also use fintech solutions, like blockchain and artificial intelligence, to offer their clients more individualized services and safer transactions. Fintech companies are also giving banks access to new technology, including data analytics, which enable them to better understand their consumers and create products and services that better suit their needs.
By offering a different perspective on how various business ecosystems and layers have facilitated the emergence of innovation-focused fintech companies and what the primary value drivers of their success have been, the research detailed in this paper aims to close a gap in the under-researched and still-evolving fin-tech literature. Key value drivers are found by leveraging the author's extensive professional knowledge in the field in addition to identifying recurring patterns in recent research.
Combining qualitative and quantitative methods allows for a more in-depth analysis of both underlying perspectives and trends that are seen. Semi-structured interviews are conducted with representatives of the fintech industry and private banks in Chennai. A purposive sample technique is used to select participants, who include technical experts, regulatory bodies, founders of fintech companies, and senior executives from traditional banks. After 200 questionnaires were sent out, 190 of them were returned with answers. The data were analyzed using a structural equation model, confirmatory factor analysis, percentage analysis, and reliability test.
The conceptual framework and foundation needed to comprehend the swift and prosperous development of recently developed financial technologies are provided in this article. The author hopes that by giving a precise definition of fintech, academics studying the fintech industry from the perspectives of regulatory issues and value-added design would be able to speak with greater consistency.