This is a very broad question. FinTech is nothing but the current consumer finance offerings packaged seamlessly and delivered to consumers phones (mostly). Regulations have been very dynamic. For instance is you look at the payments space the Payments and Settlements Act itself was made in 2007. By 2012 you had the first of the mobile wallets crop up. In parallel a lot of safeguards such as second factor authentication was formulated. The regulator has been very agile to safeguard consumer interests. For instance the latest guidelines in pre paid instrument space came out in October 2017 and this has repercussions on all incumbents affecting from April 2019. On the lending side the process has just begun of forming regulations few licences for instance on P2P lending has been given out. Payments bank was another aspect the Nachiket More Committee did and gave out licences in August 2015. I was an integral part of this in my then job. The whole ecosystem got support with startups in different spaces coming in eg Uber/Ola, Food, Doorstep Services etc. The next leg as you see in the deck is credit and followed by investment. And companies have taken a step towards the same.
The ecosystem is evolving in such a way in this area that NBFC or a bank wont be always directly competing against each other they are more like Frenemies. The banks have a distinct advantage for instance being escrow bankers or holding nodal accounts thus giving them float. NBFCs in lending space you already know are actually solving consumer pain points and the whole ecosystem is benefiting from them eg Bajaj Finance cards benefits its sponsor bank RBL too, or a PhonePe transaction benefits YES Bank etc.
In 2012 all people in this space looked towards Africa specifically Kenya. Trying to equate mpesa success to prospective success in India. But that wasn’t so. The dynamics and problems were quite different there. After a few years this strategy actually led to payments bank concept to go for the bottom of the pyramid if I may put it that way. But our mobile and data penetration is extreme and goes down to real low income levels. People who defecate in the open have smartphones with data connectivity but not a toilet at home. That is actually a fact and not an opinion. Post maybe 2014-15 with the advent of the app ecosystem things evolved and there is more movement in the top of the pyramid. FinTech for rural is not a success unfortunately. It is data consumption which is. I believe WhatsApp has the power to make this happen though. And perhaps the whole of India including Finance Ministry, RBI, NPCI etc etc is after WhatsApp to regulate what it shows to its consumers. Now this whole community is looking East towards China and asking that will that happen in India. The answer is both an yes and a no.