How the technology has played a pivotal role in the proliferation of financial service? There is evidence that Fintech Companies are acting as enablers in the banking ecosystem. Elucidate.

Technology has played a vital role in the proliferation of financial services. Cheques, Wire Transfers, ATMs and Credit Cards were important innovation so such nature. Fast payment systems, such as immediate Mobile Payment Services (IMPS) and unified Payment Interface (UPI) have emerged as an application of technology. In India, the initiative undertaken by the Government, The Reserve Bank and the liquidity have led to a radical shift towards ubiquitous digitization, which has provided an impetus to adoption of technology. There is a unique confluence of several positives like demographic dividend, JAM trinity, etc. that would further support rapid digitalization of financial services in India. Globally banks are facing increasing competition from on tradition players, which are taking advantage of digital innovation. The movement towards digital payment has also been facilitated by introduction of fast payment systems, such as IMPS and UPI which provides immediate credit to beneficiaries and are available round the clock. The extent of digital penetration can be gauged from the fact that each day on an average the payment system in India process more than 10 crore transaction of nearly ₹6 Lakh crore. Today digital payment account for around 97% of daily payment system transactions in term of volume. This has been made possible with an accelerated growth of over 80% in the volume of digital payment transaction in the last five years. There is evidence that fintech companies are acting as enablers in the banking ecosystem. In various areas of banking the numerous fintech startups have entered with many potential benefits. They have entered into the payments and remittance space, in the space of peer-to-peer lending, crowd lending, trade finance, insurance, account aggregation and wealth management. Building on the advantages of reinforcing nature of their data-network activities, some Big Techs are venturing into payments, money management, insurance and lending activities. With inroads into their traditional businesses, banks are expanding into newer areas such as insurance, asset management, brokerage and other services. Given size and reach of Fintech statups and Big Techs can assess the business of borrowers, reducing the need for collateral. Hence their low cost structure business can easily be scaled up to provide basic financial services the unbanked population. Banks are relying on the number of strategies to embrace technological innovations, ranging from investing in fintech subsidiaries, to collaborating with fintech companies. Banks and non-banks are partnering to offer the combination of trust and innovation to the Indian consumer. This "best of both worlds" approach has resulted in tremendous growth in nature of digital payments, which is expected to continue. These strategies can effectively ensure that banks retain market share on customer increasingly value more efficient and cost effect service.