Week 2 Unit 1

Sl. Subtopic Name: Disruptive Technology Trends Mode

No (Video/ Text/ PDF/
Audio podcast)
1 New age technologies, Overview of Disruptive Technologies Video/Text

2 Disruptive Innovations, Innovation Cycle - Phases, Metrics, Video/Text

Components

3 Value Networks & Value Propositions-Identifying the points Video/Text

of disruption, Open Innovations.

4 World of Services & Platforms, Introduction to As-A-Service Video/Text

Banking, Banking as a Service (BaaS), Banking as a Platform
(BaaP), Difference between BaaS & BaaP

5 API Based Banking, Fintech Saas - Software as a Service Video/Text

(SaaS), Human as a Service (HuaaS), Overview of Open
Banking Architecture, Growth of Banks via BaaS

6 Fintech Start Up Ecosystem- Accelerators, Marathons - Video/Text

Hackathons, Proof of Concept (POCs), Y-Combinators &
Unicorns.

7 Quiz: Week 02 - Assignment 02 Assessment

8 Week 02 Notes PDF

New age technologies

Contents
A. Introduction to New age technologies
B. Key Features of New-Age Technologies in FinTech
C. Key Technologies in FinTech
D. Benefits of New-Age FinTech Technologies
E. Challenges in Adopting New-Age Technologies
F. Conclusion
G. Introduction to Disruptive Technologies
H. Overview of Disruptive Technologies
I. How Disruptive Technologies Work?
 J. Why Disruptive Technologies Matter?

A. Introduction to New age technologies

Hello learners! Welcome to the week 2 of Fintech Foundation and Applications.
In this week we are going to learn about the new age technology and Disruptive
Technology Trends. Let’s begin this week with an interesting story on the life of
Ramesh, adapting to the new age and disruptive technology and
how FinTech Changed Ramesh's Life?
Ramesh was a small shop owner in a bustling village in India. He sold groceries,
vegetables, and a few daily essentials, but his business struggled with the
constant problem of cash flow. Most of his customers preferred paying in cash,
and many times, he didn’t have the exact change to complete transactions. This
would lead to delays, awkward negotiations, and, at times, losing customers
altogether.
One day, a bank official visited his village to talk about digital payments.
Intrigued, Ramesh attended the session and learned about Unified Payments
Interface (UPI) and mobile payment apps like PhonePe, Paytm, and Google Pay.
Initially hesitant, he decided to give it a try, and with the help of his son, he
downloaded a UPI-enabled app on his phone.
Within a few days, things started changing. Customers who used to walk away
because they didn’t have cash now began paying digitally. Transactions were
instant, and Ramesh no longer worried about handling loose change. He even
started receiving payments from regular customers who would scan his QR code
to pay remotely, allowing him to deliver groceries to their homes. His business
grew because more customers appreciated the convenience.
But that wasn’t all. Using the app’s analytics, Ramesh noticed which products
were selling the most. He began stocking up on those items more efficiently,
reducing waste and increasing profits. Encouraged by his success, he applied for
a small loan through a digital lending platform. The process was quick, with no
endless paperwork, and the money was approved within days. He used the loan
to expand his shop and add a refrigerator for perishable goods, which attracted
more customers.
Ramesh’s financial life also improved personally. He started using another app
for saving and investing small amounts regularly. He no longer kept all his
earnings in a drawer at home; instead, he learned to grow his money by investing
in safe financial products recommended by the app.
In just a few months, Ramesh transformed from a struggling shop owner to a
confident entrepreneur. All this was made possible by the new-age technologies
in FinTech that made financial services accessible, easy to use, and tailored to his
needs. Today, Ramesh proudly talks about how "scanning a QR code" changed
his life and inspired many others in his village to embrace digital payments and
financial tools. For him, FinTech wasn’t just about technology—it was a bridge to
opportunities he never thought possible.

The financial services industry has undergone a phenomenal shift in recent

years, driven by the integration of new technologies collectively known as "new-
age technologies." These technologies have redefined how financial institutions
operate, interact with customers, and deliver products and services. From
enhancing operational efficiencies to democratizing access to financial tools,
new-age technologies are the backbone of modern FinTech innovation.
What Are New Age Technologies?
New-age technologies refer to a set of advanced digital tools and methodologies,
including Artificial Intelligence (AI), Blockchain, Big Data Analytics, Internet of
Things (IoT), and more, that have significantly transformed the traditional
finance landscape. They leverage the power of automation, real-time data
processing, and enhanced computing capabilities to address inefficiencies and
create new opportunities in financial systems.
B. Key Features of New-Age Technologies in FinTech
1. Digital Transformation: Modern technologies are transitioning financial
processes from manual to automated and digital platforms, reducing costs
and errors.
2. Accessibility: Technologies like mobile banking and digital wallets ensure
financial inclusion, enabling underserved populations to access financial
services.
3. Security and Compliance: Advanced cybersecurity measures and
regulatory technologies (RegTech) ensure data protection and adherence
to global standards.
 4. Personalization: AI-driven insights provide tailored financial solutions,
improving user experience.
5. Efficiency: Automated workflows, real-time data processing, and faster
transaction speeds enhance operational efficiency.
C. Key Technologies in FinTech
1. Artificial Intelligence (AI) and Machine Learning (ML)
Applications of this includes Fraud detection, credit scoring, personalized
recommendations, and chatbots. The features are Real-time data analysis,
Improved decision-making processes and enhanced customer service via AI-
powered virtual assistants.
2. Blockchain and Distributed Ledger Technology (DLT) is used in
Cryptocurrencies (like Bitcoin), smart contracts, decentralized finance (DeFi),
and secure transaction systems. The features include Immutable and
transparent transaction records, Reduction in intermediaries, lowering costs
and enhanced security through decentralization.
3. Big Data Analytics is used in Risk management, market analysis, and
customer behavior prediction. The features includes Insights from vast
datasets for strategic decisions, Improved risk assessment models and
enhanced customer segmentation and targeting.
4. Robotic Process Automation (RPA) is used for streamlining repetitive tasks
like data entry, compliance checks, and report generation. The features
include reduced manual errors, faster processing times and cost-effective
operations.
5. Biometric Authentication is used for Identity verification, secure login
systems, and fraud prevention. The features include enhanced security with
fingerprint, facial, or voice recognition, faster authentication processes and
reduced reliance on passwords.
6. RegTech (Regulatory Technology) is used for compliance monitoring, fraud
prevention, and reporting. The features include automated compliance
checks, real-time risk monitoring and cost reduction in meeting regulatory
requirements.
7. Open Banking is used for sharing financial data with third-party providers
via APIs for innovation in services. The features include enhanced
competition among service providers, improved financial product offerings
and greater transparency for customers.
8. Cloud Computing is used for hosting financial applications, data storage,
and disaster recovery. The features include scalability and flexibility, cost-
effective infrastructure and enhanced data accessibility and collaboration.
9. Internet of Things (IoT) is used for connected devices for payment systems,
fraud detection, and financial data collection. The features include seamless
integration with smart devices, real-time financial tracking and enhanced
customer experience.
10. Quantum Computing (Emerging Technology) is used for risk analysis,
portfolio optimization, and advanced encryption. The features include solving
complex financial problems at unprecedented speeds, enhanced encryption
for security and better predictive models for market trends.

D. Benefits of New-Age FinTech Technologies

1. Enhanced Customer Experience
• With AI, machine learning, and data analytics, financial services are now
tailored to individual preferences. Features like chatbot-driven customer
support, personalized investment recommendations, and intuitive user
interfaces make banking and financial transactions seamless and secure.
• Examples:
o Chatbots: HDFC Bank's Eva and Bank of America's Erica use AI to
assist customers with queries 24/7.
o Personalized Financial Management: Apps like Mint provide real-
time budgeting and financial insights tailored to user behavior.
2. Greater Financial Inclusion
Technologies like mobile banking, digital wallets, and peer-to-peer (P2P)
lending platforms allow access to financial services for underbanked and
unbanked populations in remote areas. Digital payment systems also
make it easier for small businesses to participate in the digital economy.
• Examples:
 o M-Pesa: A mobile money service that has brought financial services
to millions in Africa, enabling savings, payments, and micro-loans.
o India’s UPI (Unified Payments Interface): Democratized payments
for millions, allowing even small vendors to accept digital payments.
3. Cost Efficiency
Automation and digitization reduce the need for manual labor, streamline
operations, and minimize errors. Cloud computing and RPA (Robotic
Process Automation) lower costs associated with infrastructure and
repetitive tasks.
• Examples:
o Cloud Adoption in Banking: JP Morgan Chase uses AWS (Amazon
Web Services) for scalable and cost-efficient infrastructure.
o RPA: Deutsche Bank employs RPA to automate back-office
processes, significantly reducing operational costs.
4. Improved Risk Management
Advanced analytics and AI-powered algorithms enhance fraud detection,
credit risk assessment, and compliance monitoring, providing a proactive
approach to risk management.
• Examples:
o Fraud Detection: PayPal uses machine learning to identify and block
suspicious transactions in real time.
o Risk Assessment: Zest AI uses AI models to evaluate
creditworthiness for loan approvals, minimizing defaults.
5. Faster Transactions
Technologies like blockchain and real-time payment systems enable
instant money transfers, cross-border payments, and settlement of trades,
enhancing overall transaction speed and efficiency.
• Examples:
o Blockchain-Based Payments: Ripple’s blockchain network
facilitates near-instant cross-border payments.
 o Real-Time Payments: The U.S. FedNow system (launched in 2023)
allows instant money transfers between banks.
E. Challenges in Adopting New-Age Technologies
1. Cybersecurity Risks
With increased reliance on technology, financial institutions are prime
targets for cyberattacks, ransomware, and data breaches. Ensuring robust
cybersecurity frameworks is essential to protect sensitive customer data.
• Examples:
o Ransomware Attacks: In 2021, Colonial Pipeline suffered a
ransomware attack, highlighting vulnerabilities in critical systems.
o Data Breaches: Capital One’s 2019 breach exposed sensitive
financial data of over 100 million customers.
2. Regulatory Hurdles
FinTech innovations often outpace regulatory frameworks, creating
challenges for compliance. Adapting to varying global regulations requires
significant resources and expertise.
• Examples:
o Cryptocurrency Regulations: Different countries have different
stances, such as the U.S. SEC tightening rules around crypto
offerings, while El Salvador adopted Bitcoin as legal tender.
o GDPR Compliance: European financial firms must comply with strict
data protection laws under the General Data Protection Regulation.
3. Data Privacy Concerns
Handling large amounts of sensitive customer data requires stringent
privacy measures. Mishandling or unauthorized sharing of data can erode
trust and lead to legal penalties.
• Examples:
o Facebook-Cambridge Analytica Scandal: Highlighted the misuse of
data, raising concerns about how companies handle user
information.
 o Biometric Data Misuse: Cases of stolen biometric data from
systems like Aadhaar in India emphasize the importance of secure
handling.
4. Integration with Legacy Systems
Many financial institutions still rely on outdated legacy systems that are
incompatible with modern technologies, creating bottlenecks and
increasing integration costs.
• Examples:
o Legacy Systems in Banking: Banks like Wells Fargo have faced
outages due to outdated systems, hindering operations.
o Transition to Digital: Institutions like HSBC are investing heavily to
modernize their legacy infrastructure to support cloud and AI
systems.
5. High Implementation Costs
Adopting and scaling new-age technologies requires significant initial
investment in infrastructure, training, and development, which can be
prohibitive for smaller organizations.
• Examples:
o Blockchain Implementation: Walmart invested heavily in
blockchain for its supply chain but acknowledged the steep costs
involved.
o AI Adoption Costs: Smaller banks often struggle to implement AI
systems like those used by large institutions such as Citibank.
F. Conclusion
New-age technologies in FinTech represent a major shift in how financial services
are delivered, consumed, and experienced. By leveraging innovations such as
Artificial Intelligence, Blockchain, Big Data, and Cloud Computing, the industry
has achieved unprecedented levels of efficiency, security, and accessibility. These
technologies have democratized access to financial tools, empowering
individuals and businesses alike, while fostering a more inclusive financial
ecosystem. However, alongside the immense opportunities they present, there
are significant challenges, including cybersecurity risks, regulatory hurdles, and
the cost of implementation. Overcoming these challenges requires collaboration
among financial institutions, regulators, and technology providers, as well as a
commitment to ethical and responsible practices. As these technologies
continue to evolve, their transformative potential will extend beyond traditional
finance, influencing global economies and fostering a future where financial
services are not only faster and smarter but also more secure, inclusive, and
sustainable. The journey forward will be defined by innovation, adaptability, and
a shared vision to harness the power of technology for the greater good.
G. Introduction to Disruptive Technologies
Imagine a world where the way we live, work, and interact is completely
transformed by new inventions. That’s exactly what disruptive technologies do.
These are groundbreaking innovations that change the rules of the game,
making old ways of doing things obsolete and opening up new possibilities. They
don’t just improve existing processes—they replace them with something
entirely better, faster, or cheaper. Think about how smartphones replaced
landlines or how streaming services like Netflix disrupted traditional cable TV.
These are classic examples of disruptive technologies at work.
In simple terms, disruptive technologies are like a wave of change that reshapes
industries and society, often catching people off guard. They may start small,
seeming like niche innovations, but over time, they grow to dominate the market
and redefine the norms.
o H. Overview of Disruptive Technologies
Disruptive technologies have been the driving force behind some of the biggest
changes in human history, and they continue to impact almost every aspect of
our lives today. Let’s look at some key examples and their effects:
1. Artificial Intelligence (AI)
• Machines that can learn, think, and make decisions like humans.
• AI is everywhere—from virtual assistants like Alexa to self-driving cars. It’s
changing industries like healthcare (with AI-driven diagnostics), finance
(fraud detection), and retail (personalized shopping experiences).
2. Blockchain
• A secure, transparent, and decentralized way to record transactions.
 • Beyond powering cryptocurrencies like Bitcoin, blockchain is
transforming supply chain management, secure voting systems, and even
real estate by cutting out middlemen and reducing fraud.
3. Cloud Computing
• Storing and accessing data over the internet instead of on physical
devices.
• It has enabled businesses to scale without investing heavily in hardware.
Services like Google Drive and AWS make storing and sharing data
seamless.
4. Internet of Things (IoT)
• Everyday devices connected to the internet, sharing data and making
smart decisions.
• IoT powers smart homes (like Alexa controlling your lights) and industries,
such as agriculture, where sensors help monitor crops in real time.
5. 3D Printing
• Printing objects layer by layer from a digital design.
• It’s revolutionizing manufacturing, allowing for on-demand production of
everything from prosthetics to car parts.
6. Renewable Energy Technologies
• Innovations like solar panels and wind turbines for cleaner, sustainable
energy.
• These are disrupting the traditional energy sector, making power
generation greener and more affordable.
7. Virtual Reality (VR) and Augmented Reality (AR)
• VR creates immersive digital worlds, while AR overlays digital information
onto the real world.
• These technologies are changing entertainment, education, and even
medical training, where surgeons practice operations in virtual settings.
8. Genomics and Biotechnology
• Advanced techniques for understanding and manipulating DNA.
 • Gene editing tools like CRISPR are curing genetic diseases and reshaping
agriculture by creating more resilient crops.
9. Quantum Computing
• A new type of computing that processes information at unprecedented
speeds.
• Although still in its early stages, quantum computing promises to
revolutionize fields like cryptography, weather prediction, and drug
discovery.
How Disruptive Technologies Work (Explained with an Indian Context)
Disruptive technologies reshape industries by following a predictable pattern of
growth and impact. Let’s delve into each stage in detail, using examples that
resonate with the Indian landscape.
1. Emergence
Disruptive technologies often begin as experimental or niche innovations,
targeting a small audience. At this stage, they might seem impractical, expensive,
or limited in scope compared to existing solutions. However, they carry the
potential to evolve rapidly and address unmet needs.
Example : When mobile payments like Paytm were first introduced, they were
seen as experimental tools, mostly adopted by tech-savvy urban users. People
were accustomed to cash transactions and hesitant to trust digital wallets.
Paytm’s initial appeal was limited to those seeking convenience for online
transactions.
2. Adoption
As the technology proves its value, it starts gaining traction among a broader
audience. This phase often coincides with improvements in usability,
affordability, and accessibility. People begin to see its advantages over traditional
methods.
Example : The adoption of digital wallets like Paytm, PhonePe, and Google Pay
surged during the 2016 demonetization in India. With a sudden cash shortage,
people were forced to explore cashless payment methods. The convenience of
UPI and QR codes made these technologies more appealing, particularly in urban
and semi-urban areas.
3. Disruption
At this stage, the technology becomes significantly better, cheaper, or more
efficient than traditional alternatives. It starts replacing existing systems and
creating new markets, fundamentally changing the industry.
Example : The rise of Ola, a ride-hailing app, disrupted the traditional auto-
rickshaw and taxi industry in India. Initially, hailing a cab was an inconvenient
process involving haggling and uncertainty. Ola’s app-based system introduced
transparent pricing, convenience, and better service. With features like Ola Auto
and Ola Share, even lower-income groups started preferring app-based rides
over traditional options.
4. Domination
The technology becomes the new norm, rendering older systems largely
obsolete. It establishes itself as the standard, and businesses or individuals who
don’t adapt are left behind.
Example : Today, UPI-based payment systems dominate the Indian digital
payment landscape. The simplicity of scanning a QR code to make payments has
become second nature to millions. Even roadside vendors and small
shopkeepers now prefer digital payments over cash, thanks to apps like
BharatPe, Google Pay, and PhonePe. The traditional reliance on cash has
significantly diminished, and India has become one of the world’s largest digital
payment markets.
To sum up
Disruptive technologies like UPI, mobile wallets, and app-based services have
followed this cycle of emergence, adoption, disruption, and domination in India.
They started as niche offerings but rapidly gained momentum by addressing real-
world problems. From helping people adapt during demonetization to
revolutionizing the way India commutes and transacts, these technologies
showcase how innovation can transform industries and become integral to
everyday life.
J. Why Disruptive Technologies Matter
Disruptive technologies aren’t just about gadgets or trends—they’re about
changing lives. They:
 • Create Opportunities: New industries and jobs emerge as technologies
evolve.
• Improve Efficiency: They streamline processes, saving time and money.
• Solve Problems: From clean energy to better healthcare, they tackle some
of humanity’s biggest challenges.
• Challenge the Status Quo: They force businesses and individuals to adapt
and innovate, fostering progress.
However, they also bring challenges like job displacement, ethical concerns, and
the need for new regulations. The key lies in embracing these technologies
thoughtfully and preparing for the changes they bring.
In short, disruptive technologies are reshaping the world at an unprecedented
pace, offering immense opportunities and challenges. They’re not just tools—
they’re the future.
References
https://www.mckinsey.com/cn/our-insights/our-insights/seven-technologies-
shaping-the-future-of-fintech?utm
https://www.pmi.org.in/manageindia/articelDetails.aspx?id=970&utm
https://ieeexplore.ieee.org/document/9776945/?utm
https://leobit.com/blog/the-future-of-banking-key-technologies-redefining-
financial-services/?utm
https://www.heraldgoa.in/edit/opinions/fueling-disruptive-innovation-for-a-
trilliondollar-digital-economy-2/218828?utm
https://www.afaqs.com/news/guest-article/embracing-new-age-marketing-
redefining-fintech-strategies-for-the-digital-era?utm
https://inc42.com/resources/how-startups-disrupt-for-innovation-insights-
from-the-indian-market/?utm
https://neontri.com/blog/artificial-intelligence-fintech/?utm
https://www.sabre.com/locations/india/resources/news/the-era-of-disruptive-
technologies-2022/?utm
https://euristiq.com/new-age-banking/?utm
https://www.hcltech.com/blogs/the-new-age-banking-paradigm?utm
https://timesofindia.indiatimes.com/gadgets-news/india-witnessing-golden-
era-of-disruptive-technologies-ey-ficci-cloud-
report/articleshow/103314346.cms?utm