FinTech Unplugged: How Money Got Smart, Sassy & Digital, and how we are keeping pace with it.

Authored by - Vinay C

1. The Past of FinTech

FinTech, short for Financial Technology, has roots tracing back to the 1950s, when credit cards were introduced, marking the beginning of the digitization of finance. The 1960s and 1970s saw the introduction of ATMs, electronic stock trading, and mainframe computers in banks. By the 1990s, online banking emerged, setting the stage for the modern era of FinTech.

2. The Present of FinTech

Today, FinTech encompasses a wide array of technologies, including mobile banking, digital wallets, peer-to-peer (P2P) lending platforms, robo-advisors, InsurTech, and blockchain-based applications. Companies are leveraging AI, big data, and cloud computing to deliver more personalized and efficient financial services. Regulatory frameworks such as PSD2 in Europe and sandboxes in various countries have accelerated FinTech innovation globally.

3. The Future of FinTech

IGT reckons that the future of FinTech lies in,

Greater financial inclusion

Greater financial inclusion means making financial services accessible, affordable, and useful to all individuals and businesses, especially those who are underserved or excluded by traditional financial institutions.

In simple terms

It’s about ensuring that everyone, regardless of income, location, or background, can:

• Open a bank account

• Get a loan or credit

• Save money safely

• Insure themselves and their assets

• Make digital payments

Why it matters

A large portion of the global population still lacks access to basic banking services.

Financial inclusion helps:

• Reduce poverty

• Empower women and small businesses

• Promote economic development

• Create more equality in society

• 
  

  How FinTech helps

• FinTech drives financial inclusion through:

• Mobile banking

• Digital wallets and UPI

• Microloans and P2P lending platforms

• Alternative credit scoring using mobile or social data

• Low-cost remittances

So when we say "greater financial inclusion is the future of FinTech," we mean FinTech will keep breaking down barriers to money and finance for the masses.

Decentralized finance (DeFi)

Decentralized Finance (DeFi) refers to a financial ecosystem built on blockchain technology that operates without traditional banks, intermediaries, or central authorities.

In simple terms, DeFi is like creating a banking system on the internet that anyone can use, without needing to go through a bank. Instead of trusting a bank or financial institution, you trust code (smart contracts) on a blockchain (usually Ethereum).

How it works

• Smart contracts: These are self-executing contracts with rules written in code. Once conditions are met, the contract runs automatically.

• Blockchain: A decentralized ledger where all transactions are recorded publicly and can't be changed.

• Tokens/cryptocurrencies: Used as value and fuel within DeFi platforms.

Benefits

• Open to anyone with internet access

• Transparent and programmable

• No middlemen, so often lower fees

• Operates 24/7 globally

  Challenges

  
  

• Smart contract bugs or hacks

• Regulatory uncertainty

• Volatility and lack of consumer protection

Embedded finance

Embedded finance is when financial services like payments, lending, insurance, or banking are integrated directly into non-financial platforms or apps, so users don’t have to go to a separate bank or financial app to use them.

Think of it like this: It’s about bringing finance into the flow of everyday experiences. Instead of visiting a bank or opening a finance app, financial features are built into the tools or services you’re already using.

Examples

Ride-hailing apps (like Ola\Uber), Riders can pay in-app; drivers can get instant payouts after a ride, E-commerce sites (like Amazon), and Travel booking sites and such.

Why it’s growing

Makes the user experience smoother and faster

Increases conversion and customer loyalty

Helps non-financial companies generate new revenue

Hyper-personalization through AI

Hyper-personalization through AI refers to using advanced technologies, especially Artificial Intelligence (AI) and machine learning (ML), to deliver deeply customized products, services, and experiences to individual users in real-time.

In simple terms, It means treating every user as a unique individual, not just a demographic or segment, by analysing their behaviour, preferences, and needs, and responding instantly with highly tailored recommendations.

How it works

AI collects and analyses data such as:

• Transaction history

• Browsing behaviour

• Spending habits

• Social media activity

• Geolocation

• Device usage

Using this, it predicts what the customer wants, needs, or is likely to do next, and tailors the service accordingly.

Examples in FinTech

• Personalized investment advice via robo-advisors

• Real-time fraud alerts based on your spending behaviour

• Smart budgeting tools that learn from your expenses

• Loan or insurance offers based on your risk profile and financial behaviour

• Customized banking app dashboards that highlight what you care about

Benefits

• Better user experience

• Higher customer engagement and retention

• Increased conversions and revenue

• Competitive advantage

Challenges

• Requires lots of clean, structured data

• Raises concerns around privacy and data security

• Needs strong ethical boundaries to avoid misuse

And of course, finally, enhanced cybersecurity and biometric authentication are expected to continue to play significant roles. Furthermore, the convergence of FinTech with other sectors, such as HealthTech and EdTech, will create new synergies.

4. Current and Upcoming Trends

• Artificial Intelligence and Machine Learning for fraud detection, credit scoring, and personalization.

• Blockchain and Cryptocurrency for transparent, decentralized financial transactions.

• Open Banking and APIs to promote interoperability and customer empowerment.

• Buy Now Pay Later (BNPL) services.

• ‘RegTech’ solutions for compliance automation.

5. IGT’s Position as an Offshore FinTech Solutions Provider

IGT has extensive expertise in the fields of banking, insurance, investment, and payments, and they are well-versed in strong cybersecurity and data protection measures. Additionally, we possess knowledge of international regulatory compliance standards such as GDPR and PCI-DSS. Their workforce is skilled in modern technologies, including AI/ML, cloud computing, and mobile development. IGT's resources have earned certifications like ISO 27001, and they have relevant case studies, success stories, and client testimonials. Furthermore, IGT has invested in research and development to innovate and maintain a leading position in the FinTech industry.

At IGT, we are prepared to advance rapidly in the FinTech sector and provide top-quality service to our clients!