The term “Fintech” (Financial Technology) refers to software and other
spearheading technologies adopted by different organizations to automate and enhance
financial services. It refers to the technology that improves the backend system at
traditional financial institutions. In FY22, $8.53 billion was invested in India's Fintech
industry. It has been anticipated that the FinTech industry will generate around $200
billion in revenue by the year 2030 and overall throughput will be $1 trillion. Fintech is
expanding quickly, yet there are several problems in the current fintech market
including interacting with legacy systems like banks, data and payment security,
compliance, lack of end-user awareness, retaining users, and user experience. Due to
the development of fintech, more data is now accessible in digital formats, which
facilitates analysis and the generation of insights but also increases the risk of security
breaches. Blockchain is disruptive technology using which one can securely move
money from one account to another without using a bank or any financial organization
The term “distributed ledger technology” is often used interchangeably with
“blockchain technology” in the financial services corporation. Each transaction has a
trustworthy record, thus there is no chance of changing to earlier ones. In essence,
blockchain technology can completely ensure the accuracy of every transaction. In this
study, the problems facing India's fintech industry are described in detail, and possible
solutions employing blockchain distributed ledger technology are suggested.
Additionally, it finds blockchain technology has the ability to enhance the security and
competence of financial operations in the Indian fintech sector, there are challenges
such as regulatory uncertainty and scalability that require to be addressed. The paper
concludes with recommendations for the upcoming development and adoption of
blockchain technology in the Indian fintech sector.
Keywords: Blockchain, Cryptocurrency, DeFi, FinTech India, FinTech, Security.
