Fintech companies Business Models and their impact on Stock Returns Using the Fama French Five-Factor Model "An Applied Study in the Indian National Stock Exchange"

Abstract

Fintech or financial technology is an emerging topic in the business world which is developing rapidly, it is effected by the different circumstances in the world, so its scope has not been clearly defined yet, as economic literatures define Fintech in deferent ways and its attachment to  the work of the traditional financial intermediaries, for that This research aims to recognize the concept of Fintech start -ups to know the activities and business models of Fintech and to analyze its impact on the work of traditional financial intermediaries through applying of the Fama and French Models five-factors on the returns of the shares of financial companies listed in the Indian National Stock Exchange. The research concluded that -in the present usage level-

Fintech has no influence on the work of traditional financial intermediaries, which means that manufacturing of the financial technology in India is still in its early stages and the world is expected to witness huge changes in the field of digital lending and other digital financial services especially with the present spread of Covid 19 Virus which will leads to creation of huge opportunities for this kind of companies and to canceled the need for the traditional financial intermediaries in the future, there for the researcher recommends traditional financial companies to benefit from the technological advantages that Fintech works with and to forward to cooperate and Partnership with this kind of companies, especially with the existence

of the present health crisis causing changes in the consumers habits as they became more respondable to the digital coded services with less charges and more speed