Girl Economics

Indian Elections and FinTech

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Girl Economics Admin
June 11, 2024

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Headlines

ChatGPT Siri?

Apple is teaming up with OpenAI to bring ChatGPT to its devices, making Siri smarter and adding personalised AI features while, they maintain, adopting state-of-the-art methods to maintain privacy. CEO Tim Cook introduced "Apple Intelligence" at their developer conference, showing off AI that is directly integrated into iPhones. Siri will now use ChatGPT for better interactions, and the the big selling point? Unlike with GPT4, there is no subscription needed. Even with this big news, Apple's stock dipped 2%.

Tax Changes for Private Equity

The UK tax authority, HM Revenue & Customs (HMRC), is cracking down on private equity firms and professional services companies that operate as limited liability partnerships (LLPs). This move could mean hundreds of millions of pounds in backdated taxes. The investigation centers on whether some LLP members were wrongly classified as self-employed to avoid higher taxes. Big names like Blackstone and Carlyle might be affected are pushing back on the proposals, urging HMRC to implement changes that support the financial sector's competitiveness rather than hinder it.

The Results Are In…

Written by Abena, Girl Economics India Reporter

With the results of the Indian General Election announced on June 4th , Modi is set to become Prime Minister for a third consecutive term. Results show that in comparison to 2019’s general election where 303 seats were secured by his party, only 240 were this time round- a major fall compared to Modi’s own prediction of 400 seats. In fact, his BJP party lost outright parliamentary majority for the first time in 10 years and required help from smaller parties to pass the 272 seats mark to secure a government. On the other hand, the opposing party, INDIA, has risen to a stronger position than ever in the last ten years, securing 232 seats suggesting that although, not enough to secure a victory, a want for change has most definitely washed over India, especially amongst the younger generations and rural populations.

India, announced the world’s most populated country in 2023, has also overtaken the United Kingdom as the fifth largest economy in the world. Therefore, it could be considered natural to assume that due to rising GDP, quality of life within India has also been facing positive advancements however, its GDP Per Capita is only ranked 136th globally placing light onto inequality within the country. Furthermore, issues within the country that wait to be solved include unemployment amongst the younger population and conflicts within agriculture, a major economic sector of India. In fact, a report conducted by International Labour Organisation revealed that educated Indians aged 15-29 are more likely to be unemployed in comparison to those without schooling. This provides an issue for the economy due to rising youth unemployment suggesting that the youth may search for employment abroad instead causing India to lose a vital workforce.

Further issues within the country involve criticism that specifically under Modi’s position as PM, islamophobia has been fuelled. With Hindu Nationalists appointed totop positions in key government institutions and Modi bringing Jammu and Kashmir, India’s only Muslim-majority state, under control of New Delhi in 2019, Muslims fear that with Modi ruling once again for a third term will do serious damage to their livelihoods.Therefore, with Modi’s historic win, what does the future for India look like?

Modi whilst being sworn in, has quoted to ‘Do right to all manner of people in accordance with the constitution and the law without fear or favour’. Additionally, he also claimed that he would ‘do everything’ to eradicate corruption and poverty. With that said, Indian citizen’s find themselves placing their trust in his hands once again to fulfil their needs.

 

Further Reading:

A Beginner’s Guide to Fintech

Written by Shruti Ramachandran, Girl Economics Finance Reporter

Fintech, the integration of technology into financial services, is revolutionizing how we manage, invest, and spend money. Utilizing cutting-edge technologies like AI, blockchain, and data analytics, fintech simplifies and secures financial processes. The industry's evolution is marked by three distinct eras: early infrastructure developments, digitization through ATMs and online banking, and the post-2008 surge in innovations like blockchain, cryptocurrencies, and mobile banking. Key areas include robo-advisors, cryptocurrencies, and peer-to-peer lending, each transforming traditional financial models. Today, fintech offers new revenue streams for businesses and exciting career opportunities in a rapidly evolving landscape.

Decoding the Digital Revolution: A Beginner's Guide to FinTech

A few months ago, I visited my hometown in India for the first time since the pandemic. The heat was intense, prompting us to stop at a roadside vendor selling coconut water for 50 rupees, roughly 0.6 dollars. As I rummaged through my purse for change, the vendor simply pointed to a QR code. Every customer at this popular stall placed their order, paid within 20 seconds, grabbed their drink, and left. It seemed routine for them, while I was still searching for smaller bills amidst my credit cards, IDs, and large denominations.

Perhaps, this vendor was unusually tech-savvy? Not at all. Every single store, from a small street food vendor with a monthly revenue of 20,000 rupees to a multinational grocery store, offered this payment option. Remarkably, people embraced it wholeheartedly, using it as if it had always been part of their lives. This one event made me realize how quickly digital payments were growing. This was only a much smaller part of a much bigger universe; the universe of fintech.

What is FinTech?

Just as the name suggests, FinTech is the integration of technology into existing financial services to make the process simpler and more secure. These solutions use a number of cutting-edge technologies like artificial intelligence, blockchain, and data analytics to create user-friendly services for both businesses and consumers. Think of apps like PayPal, Venmo, and Mint—they're beautiful examples of how apps have disrupted this field.

A Brief History of FinTech

Fintech 1.0 (1866-1967): The era built the basic infrastructure from the first transatlantic cable to electronic fund transfers.

Fintech 2.0 (1967-2008): The digitization of money through such innovations as ATMs, NASDAQ, and online banking right up to the 2008 financial crisis

Fintech 3.0 (2008-present): ost-crisis, driven by distrust in traditional banks and technological development, such as blockchain, cryptocurrencies, and mobile banking. It has seen a very high volume of start-ups and new banks.

Key Areas of FinTech

  1. Robo-Advisors: The provision of automated recommendations for investments, which are algorithm-led and meant to make financial planning very affordable and accessible. Example: Betterment.

  2. Cryptocurrencies: Digital money like Bitcoin, secured by complex codes, allowing online purchases without a bank. Transactions are recorded on a special public record system called blockchain, which everyone can see but no one can tamper with, making it super secure.

  3. Peer-to-Peer Lending: Platforms like Prosper Marketplace, LendingClub, and Upstart enable direct lending from micro-lenders to individuals and small businesses, bypassing traditional financial intermediaries.

The Future of FinTech

Fintech is not just a buzzword; it's a dynamic and evolving area. Since 2015, fintech startups have raised billions in venture funding, some becoming unicorns. Today, every company in every sector wants to embed financial services within its products and apps to keep customers engaged and earn fees on their transactions.

Embedding features—such as mobile payments, lending, or investment tools—directly into one's platform allows businesses to tap into fresh revenue streams, increase customer loyalty, and outperform competitors. An increasing number of regulators are focusing on consumer protection and financial stability in this quickly changing landscape.

Conclusion

FinTech is transforming how we manage, invest, and spend our money. It offers opportunities for students in cutting-edge research development, creating innovative solutions, and indulging in a fascinating career line in a sector that is continuously evolving. Embracing these advancements ensures we stay ahead in the ever-changing world of finance.

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