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IMDR’s Journal of Management Development & Research 2023-24

at minimal marginal cost, is the cornerstone of the India Stack. Aadhaar has been assigned to

more than 1.25 billion Indian citizens, and 30 million authentication requests are handled
every day (UIDAI, 2019). Using Aadhaar, a number of publicly accessible platforms for

payments, digital signatures, cloud storage, and verification (e-KYC, e-sign, and DigiLocker)
have been built. These platforms allow innovators to generate and share value without having

to create their own digital infrastructure. The Unified Payments Interface (UPI) is a crucial
enabler that allows users to conduct fund transfers and merchant payments by virtualizing

accounts. Framework for sharing data Since online data are frequently non-rival and may be

gotten at zero marginal cost, broader access to them may be advantageous. In principle, open
data access could promote competitiveness, financial inclusion, and minimize client

switching costs. Account Aggregators (NBFC-AA) are a class of regulated data fiduciary

companies for which the Reserve Bank created a regulatory framework in 2016. This
framework allows customer data to be exchanged within the regulated financial system with

the customer's knowledge and consent. Regulated entities (as defined by the RBI, SEBI,
IRDA, and PFRDA) shall have temporary access to data for a specific purpose. FinTech

enablers are also greatly aided by innovation facilitators. In order to support the rapidly
growing FinTech industry, the Reserve Bank established a "Regulatory Sandbox" that

permits live testing of new products in a regulated setting and produces data on the

advantages and disadvantages of financial innovations (RBI, 2019). The operational theme
"retail payments" applied to the first cohort of applications evaluated for the Regulatory

Sandbox (RBI 2019a).

Research findings

1. The FinTech revolution presents regulatory challenges that require careful consideration.
Regulatory frameworks must adapt to address issues of consumer protection, data privacy,

cybersecurity, and financial stability while fostering an environment conducive to FinTech
innovation.

2. The market share of traditional banks has decreased in the lending and payment sector,
which is a sign of increased competition from FinTech companies. However, they still

maintain a dominant position in asset management

3. Overall, this shift towards the adoption of FinTech services reflects changing consumer
preferences for digital and tech-driven solutions in managing their finances. It underscores

the growing importance of technology in reshaping the financial services industry and
meeting the evolving needs of modern consumers.

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