Fintech has emerged as a buzzword in India in the recent years with technology slowly becoming not just the backbone of financial services market - at times it provides the last mile connectivity. Fintech is a broad term including payment solutions, gateways, remittances, data curation for financial services, platforms offering promotions to customers, automated method for collecting cash payments etc. and we have seen a whole plethora of new players enter this sector.Fintech also came to limelight after the big push by government as well as the central bank on financial inclusion. With 60 per cent Indians being unbanked and 90 per cent of SMEs having no formal relationships with financial institutions it's the need of the hour and it is heartening to see that Indian entrepreneurs are leveraging technology to promote financial inclusion. Jan Dhan Yogana, Aadhaar, payment banks and such initiatives are accelerating the pace of financial inclusion in the country and fintech is enabling this growth platform.The debate today is whether these disruptors are posing a threat to the existing financial institutions Are they taking away customers and eroding margins.Frankly customer loyalty in a crowded market seems to be a myth and customers are the biggest beneficiaries queuing up to the cheapest provider or the one providing value added and consistent service quality. So while there is ample space in the market for both fintech and the traditional firms to survive, the fintech disruptors are definitely making the old school firms redefine their strategy and also getting the newer breed of financial institutions to become more nimble and focus on margins.Investments in fintech are also on the rise with expected investments up from $3 billion to $8 billion by 2018 (as per Accenture). In 2014, VCs invested $42 million across 15 deals. The logic behind these investments seem to be the changes in the market the VCs, PE firms and investors expect these firms to make.Some areas where the fintech companies are and can make a difference :