Fintech Innovations and their Influence on Consumer Financial Behaviour

Abstract

This study, titled "Fintech Innovations and Their Influence on Consumer Financial Behaviour," evaluates the structural shifts, transactional dynamics, and savings/borrowing habits of retail consumers in India's evolving digital finance ecosystem. Fintech innovations—including mobile payments, micro-savings, and Buy Now Pay Later (BNPL) schemes—have transformed traditional banking channels. A five-year project lifecycle (2021- 2025) of a retail banking cluster's fintech implementation is analyzed using standard capital budgeting parameters: Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PBP), and Benefit-Cost Ratio (BCR). Quantitative metrics indicate that mobile payments and UPI dominate application usage (45%). The average monthly transaction volume rose from 4 under legacy channels to 82 under integrated apps. Active micro-savings accounts expanded to 38 million, while BNPL outstanding debt rose to 3,800 INR by 2025, bringing default repayment risks. The financial model yields a positive NPV of 284.5 Crores and an IRR of 38.6%, far exceeding the 10% discount hurdle rate. The study concludes that deploying consumer-focused fintech platforms is highly feasible, providing commercial banks with substantial operational efficiency, customer retention, and retail credit expansion. Keywords: Fintech Innovations, Consumer Behaviour, Micro-Savings, Buy Now Pay Later (BNPL), Transaction Volume, Capital Budgeting, Financial Feasibility, Retail Credit.