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CS Professional · IFSCA - Regulations, Listing and Compliances · Overview of FinTech and Service Providers in IFSC

Aarav Tech Pvt Ltd builds a mobile app that lets users in India compare mutual fund schemes and invest through a bank's payment gateway. The founders describe the app as 'FinTech'. Which statement best captures why it qualifies as FinTech in the general sense used in the syllabus?

The app qualifies as FinTech because FinTech means applying technology to create, improve or deliver financial products and services, such as digital investing. Being a bank, being located abroad or using paper forms is not required for the label.

  1. AIt applies technology to design or deliver financial products and servicesCorrect
  2. BIt is regulated only if it is located outside India
  3. CIt has been incorporated as a bank under banking law
  4. DIt uses paper-based forms to process investments

Explanation

FinTech refers to the use of technology to innovate in or deliver financial services such as payments, investments, lending and insurance. The app uses a digital platform to deliver investment services, so it fits. Location outside India and bank status are not conditions for being FinTech, and paper processes are the opposite of the idea.

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