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What is FinTech?

What is FinTech?

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Joydeep
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April 10, 2017
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Fintech is the application of technologies to disrupt existing processes or bring in new paradigms in the financial industry. Be it banking or insurance or digital payment, fintech is currently revolutionizing the world.

Fintech has disrupted all aspects of the industry. Rapid innovation is the key in sectors like lending, financial inclusion, financial advisory, personal finance, security, and digital payments. Fintech, on one hand made services like Net Banking a given in today’s world. On the other hand, it has made names of startups like PayTM a common word in the vocabulary of the laymen.

Fintech companies are more customer centric than traditional financial companies. They believe in rapid innovation. The fact that many of the early adopters are low-age groups with disposable incomes has made fintech one of the hottest trends in technology.

What are the companies in fintech?

There are mainly four types of companies that are interested in fintech.

  1. Major banks that have traditionally been associated with finance and look at technology and fintech as the next level, for example, any large bank that has technology offerings
  2. Well-established tech players that are also looking for business opportunities in the financial services space although they are not traditionally financial companies, for example, we now have the Google wallet and the Apple pay.
  3. Companies that provide infrastructure and services which enable other fintech players to operate in the financial space; examples include PayUmoney that acts as a payments gateway, or MasterCard, which processes payments between banks of merchants when the merchants use the cards that are issued by the banks

Disruptors that are fast-moving companies and startups; these companies generally focus on a single business innovation or process. For example take SoFi, it is a San Francisco based company that focuses on high-earning recent graduates and tries to refinance their student loans. Or take the case of PayTM, which focuses on the Indian payments ecosystem.

What are the major fintech areas that are driving innovation?

Lending: Lending is the space where the biggest innovations in fintech are coming from. Traditionally, lenders have given more money to people who already have money. Fintech companies are doing away with the traditional credit history-based scoring system and coming up with lending solutions even for the unbanked. For example, Lending Club operates an online lending platform that helps borrowers get a loan and investors purchase notes backed by payments made on loans. Others like Biz2Credit are using social profiling tools to access the credit worthiness of individuals and small businesses.

Financial Inclusion: Experts believe that fintech is the key behind financial inclusion. For example, M-Pesa reached 80% of households in Kenya in 4 years[source]. Fintech companies achieve financial inclusion through various methods. One of them can be by leveraging existing low-cost solutions, like M-Pesa doing transactions through SMS. One other example is Kobocoin, which is giving an existing technology, blockchain in this case, a more local flavor so that it reflects the needs of the masses.

Even for developed countries, companies that focus on financial inclusion have the potential to make social security programs more effective. For example, in various parts of the world like Japan and India, public benefits are directly paid to the bank accounts of the recipients and the process is tracked through a Unique Identification Number like Aadhar Card in India or the My number(??????) system in Japan.

Financial Advisory: Fintech companies have generally relied on automation to provide services and this is the strategy being applied to traditional advisory services like M&A transactions, restructuring, raising capital, and forensic investigations. There can be a common platform where the users can engage with the experts as in BankerBhai.com. One more example is Elliptic, which provides services like identifying illicit activity on the Bitcoin blockchain.

Personal Finance: Through the use of fintech, there is a lot of scope to have more efficient processes. Many organisations are building companies by automating the acts of personal finance like individual or family budgeting, insurance, savings, and retirement planning. For example, Wealthfront provides online money management. Paytm tries to keep all your different payments under one portal.

Blockchain and distributed ledgers: Blockchain, which is the technology behind the famous bitcoin, is an open source distributed database using state-of-the-art cryptography. Currencies that use blockchain enable us to do transactions without a powerful third party like a bank or the government. There are various companies that are operating in the space of blockchain, either by using bitcoin, the largest blockchain, like Blockchain.info or Unocoin, or by having their own blockchain cryptocurrency like Kobocoin.

Security: Fintech is only projected to grow in the future and since this domain primarily deals in finance and financial products, customers will have high expectations in terms of security from fintech products. Also, fintech companies will always be a lucrative target for people with malicious intent. For example, there was the JP Morgan Chase data breach in 2014[source] which affected 83 million customers accounts. For this reason, heavy investment is being done in security. and we have a lot of companies in the field. For example, VKey focuses on user security. Tranwall is a Hong Kong startup that focuses on providing increased levels of security to the cardholders of the customer banks.

What is the future in fintech

The rise in fintech has led to growth in both customer awareness and customer expectations, and this acts both as a challenge and as an opportunity. This has resulted in financial incumbents, those who are already established financial services players, taking bold steps and engaging with emerging innovations. Also, new start-ups have found greater acceptance with the population. Following graphs show the amount of investment the fintech companies have received globally.

Image: the growth of global investment in the fintech sector from 2011 to 2016

Source: Business Insider

Users are also spending more time on various apps and doing a greater part of their financial transactions through the apps.

User activity on various payments apps
Source: Nielson

If you think that these trends are astonishing, remember that this will only grow in the coming years.

References:

techstory: lending market in india
letstalkpayments: 22 fintech companies in africa

fintech is the key driver of financial inclusion
fintech and financial inclusion
how fintech security helps foster innovation
fintech companies in fraud prevention
how banks are leveraging developer community

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Why AI Interviews Are Becoming Standard Practice in Technical Hiring

Why AI Interviews Are Becoming Standard Practice in Technical Hiring

What Engineering Leaders and Talent Teams Need to Know in 2026

Technical hiring has a throughput problem. The average senior engineer spends over 15 hours a week on candidate screening, time pulled directly from product work. Recruiters manage inconsistent evaluation standards across interviewers, scheduling bottlenecks across time zones, and drop-off rates that increase every time a candidate waits too long to hear back.

AI-powered interviews have emerged as a direct response to these operational challenges, and in 2026, they have moved from experimental to mainstream.

This is not about replacing human judgment in hiring. It is about how AI interviews fit into a well-designed technical hiring process, what research shows about their impact, and what to consider when evaluating platforms.

AI Interviews Remove the Limits of Human Screening

The most immediate value of AI-powered interviews is capacity. A single AI interviewer can screen thousands of candidates simultaneously, across time zones, without scheduling conflicts, and with consistent evaluation standards. For organizations running high-volume technical hiring or expanding globally, this eliminates the constraints imposed by human bandwidth.

Consistency is another key advantage. Human screening can vary across interviewers, days, and even times of day. AI interviews apply the same rubric to every candidate, every time. This ensures fairness and produces higher-quality data for hiring decisions downstream.

Cost savings are also significant. Automating repetitive screening through AI can reduce recruitment costs by up to 30 percent, freeing senior engineering and recruitment teams to focus on areas where human judgment adds the most value, such as final technical rounds, culture fit, and candidate closing.

What the Data Actually Tells Us

A large-scale study by Chicago Booth's Center for Applied Artificial Intelligence screened over 70,000 applicants using AI-led interviews. The results challenge the assumption that automation compromises hiring quality.

Organizations using AI interviews reported:

  • 12% more job offers extended
  • 18% more candidates starting their roles
  • 16% higher 30-day retention rates

These improvements suggest AI screening, when implemented properly, surfaces better-matched candidates without reducing quality. The structured, bias-reduced evaluation process also increases access to qualified candidates who might otherwise be filtered out.

Candidate feedback is also important. When offered a choice between a human recruiter and an AI interviewer, 78% of applicants preferred the AI. They cited fairness, efficiency, and schedule flexibility as the main reasons. Transparent AI interview processes improve candidate experience rather than harm it.

What Really Happens in an AI Interview

Modern AI interview platforms combine multiple technologies.

Natural language processing allows systems to understand responses contextually, not just match keywords. The system can probe deeper when a candidate mentions a particular solution or concept, ensuring dynamic, adaptive interviews.

For technical roles, AI platforms often include live coding environments across 30+ programming languages. These platforms assess code quality, problem-solving, efficiency, and framework familiarity. Question libraries, such as HackerEarth’s 25,000+ vetted questions, are mapped to specific skills and roles.

Some platforms use video avatar technology to simulate a more natural interaction. This reduces candidate anxiety and encourages authentic responses, producing better evaluation data.

AI systems also mask personal identifiers to prevent unconscious bias. Candidate evaluation is based solely on demonstrated ability.

Where Human Judgment Remains Essential

AI interviews handle high-volume screening and structured evaluation, but human judgment remains critical. Final decisions, culture fit assessments, and relationship-building still require human oversight.

AI complements human recruiters by allowing them to focus on high-impact decisions rather than repetitive tasks.

Bias mitigation is another consideration. Leading platforms implement diverse training datasets, bias audits, and transparent evaluation methods. Organizations should verify how vendors handle these aspects.

What to Evaluate When Selecting a Platform

Not all AI interview platforms are equal. Key criteria include:

  • Question library depth: Role-specific, vetted questions provide better assessment signals
  • Adaptive questioning: Follow-up questions based on responses reveal deeper insights
  • Proctoring and security: Real-time monitoring, AI-likeness detection, and secure browsers are essential
  • Integration with ATS: Smooth integration prevents operational friction
  • Candidate experience: Lifelike avatars and intuitive interfaces reduce drop-offs and enhance employer brand
  • Data security and compliance: Robust encryption and privacy compliance are mandatory
  • Proven enterprise adoption: Platforms used by top companies validate reliability and scalability

Getting Implementation Right

Successful AI interview deployment focuses on process design, not just software.

  • Define scope clearly: AI works best in specific stages of the hiring funnel, typically after initial applications and before final human-led rounds
  • Be transparent with candidates: Inform applicants about AI interviews to improve trust and experience
  • Correlate AI scores with outcomes: Track performance, retention, and satisfaction to refine the process
  • Invest in recruiter training: Recruiters shift from screening to interpreting AI insights and focusing on high-value interactions

So, What’s the Real Impact?

AI interviews solve measurable problems, including limited interviewer bandwidth, inconsistent evaluation, scheduling friction, and geographic constraints. Research supports their effectiveness as a scalable, structured layer that enhances screening quality without replacing human judgment.

For organizations hiring technical talent at scale in 2026, the focus is on how to implement AI-powered interviews effectively rather than whether to adopt them. The tools, evidence, and candidate acceptance are already in place. Success comes from thoughtful process design.

HackerEarth offers AI-powered technical assessments and interviews, including OnScreen, its always-on AI interview agent with lifelike avatars and end-to-end proctoring. It serves 500+ enterprise customers globally, including Walmart, Amazon, Barclays, GE, and Siemens, supporting 100+ skills, 37 programming languages, and 25,000+ vetted questions.

Introducing HackerEarth OnScreen: AI-powered interviews, around the clock

Introducing HackerEarth OnScreen: AI-powered interviews, around the clock

Tech hiring has a blind spot, and it's not the resume pile, the take-home tests, or even the interview itself. It's the gap between when a great candidate applies and when your team is available to talk to them. That gap costs you more top talent than any competitor does.

Today, HackerEarth OnScreen closes it permanently.

The real cost of scheduling friction

Most companies assume they lose candidates to better offers. The data tells a different story.

A developer weighing two opportunities almost always moves forward with the company that responded first, not the one that sent a calendar invite for Thursday. AI-generated resumes have flooded inboxes, making screening harder. Engineering teams the people best positioned to evaluate technical depth have limited hours. Recruiters are under pressure to move faster while maintaining quality.

Something had to change.

What OnScreen does

OnScreen doesn't just automate scheduling. It conducts the interview.

A candidate who applies at 11 PM gets a full interview before Monday morning through lifelike AI avatars with built-in identity verification and proctoring. The experience is a genuine two-way conversation: dynamic, adaptive, and role-calibrated. This is not a chatbot filling out a scorecard.

One enterprise customer screened more than 2,000 candidates in a single weekend with complete consistency and zero interviewer bias.

"Recruiters are under pressure more than ever. The volume of applicants has surged, AI-generated resumes have made initial screening harder, and the risk of missing the right candidate keeps climbing. OnScreen was built so that no qualified candidate is overlooked because nobody was available to interview them."
— Vikas Aditya, CEO, HackerEarth

Three capabilities, combined for the first time

In-depth interviewing that evaluates reasoning, not recall.
OnScreen conducts dynamic technical conversations that adapt to how each candidate responds. It probes the depth of knowledge, follows threads, and evaluates the quality of thinking behind each answer not just whether the answer is correct. Every interview runs on a deterministic framework: the same structure for every candidate and no panel-to-panel variation.

Integrated proctoring, built in from the start:
Enterprise-grade proctoring is woven directly into the interview flow not bolted on as an afterthought. Legitimate candidates won't notice it. The ones who shouldn't be in your pipeline will.

KYC-grade candidate verification
OnScreen brings identity verification standards from financial services into technical hiring. Proxy candidates, resume misrepresentation, and skills that don't match the application – all three gaps were closed at the source.

What hiring teams are saying

"Before OnScreen, we had no reliable way to measure candidate quality, especially with the rise of AI-generated CVs. Now, screening is far more objective. Roles that previously took much longer are now being closed within three to four weeks."
— Pawan Kuldip, Head of Human Resources, Discover Dollar Inc.

Built for everyone in the process

For engineering teams:
Fewer hours on screening calls. Senior engineers focus on final-round conversations, not first-pass filters.

For recruiters:
Pipelines that move. Candidates evaluated and scored before the week starts.

For candidates:
A consistent, skills-first experience, regardless of when they apply or where they're located.

OnScreen integrates directly into HackerEarth's existing platform alongside Hiring Challenges, Technical Assessments, and FaceCode. It extends your interviewing capacity without adding headcount.

The hiring bar just got higher. Everywhere.

Top talent expects swift, fair processes. Companies that deliver both, at scale, around the clock, will hire the engineers everyone else is still scheduling calls about.

OnScreen is now live for enterprise customers. Request access at hackerearth.com/ai/onscreen.

HackerEarth powers technical hiring at Google, Amazon, Microsoft, and 500+ global enterprises. The platform supports 10M+ developers across 1,000+ skills and 40+ programming languages.

What It Takes to Keep Gen Z Engaged and Growing at Work

What It Takes to Keep Gen Z Engaged and Growing at Work

Engaging Gen Z employees is no longer an HR checkbox. It's a competitive advantage.

Companies that get this right aren’t just filling roles. They’re building future-ready teams, deepening loyalty, and winning the talent market before competitors even realize they’re losing it.

Why Gen Z is Rewriting the Rules

Gen Z didn’t just enter the workforce. They arrived with a different operating system.

  • They’ve grown up with instant access, real-time feedback, and limitless choice. When work feels slow, rigid, or disconnected, they don’t wait it out. They move on. Retention becomes a live problem, not a future one.
  • They expect technology to be intuitive and fast, communication to be direct and low-friction, and their employer to reflect values in daily action, not just annual reports.

The consequence: Outdated systems and poor employee experiences don’t just frustrate Gen Z. They accelerate attrition.

Millennials vs Gen Z: Similar Generation, Different Expectations

These two cohorts are often grouped together. They shouldn’t be.

The distinction matters because solutions designed for Millennials often fall flat for Gen Z. Understanding who you’re designing for is where effective engagement strategy begins.

Gen Z’s Relationship with Loyalty

Loyalty, for Gen Z, is earned, not assumed.

  • They challenge outdated processes and push for tech-enabled workflows.
  • They constantly evaluate whether their current role offers the growth, flexibility, and purpose they need. If it doesn’t, they start looking elsewhere.

Key insight: This isn’t disloyalty. It’s clarity about what they want. Organizations that align experiences with these expectations gain a competitive edge.

  • High turnover is the cost of ignoring this.
  • Stronger teams are the reward for getting it right.

What Actually Works

1. Rethink Workplace Technology

  • Outdated tools may be invisible to older employees, but Gen Z sees them immediately.
  • Modern HR tech and collaboration platforms improve efficiency and signal investment in people.
  • Invest in tools that reduce friction and enhance daily experience, not just track performance.

2. Flexibility with Clear Accountability

  • Gen Z values autonomy, but also needs clarity to thrive.
  • Hybrid and remote models work when paired with well-defined goals and explicit ownership.
  • Focus on outcomes, not hours. Autonomy with accountability is a combination Gen Z respects.

3. Continuous Feedback, Not Annual Reviews

  • Annual performance reviews feel outdated. Gen Z expects real-time feedback loops.
  • Frequent, actionable feedback helps employees improve faster and signals that their growth matters.
  • Make feedback a weekly habit, not a twice-yearly event.

4. Make Growth Visible

  • If career paths aren’t clear, Gen Z won’t wait. They’ll look elsewhere.
  • Internal mobility, structured learning paths, and reskilling opportunities signal future potential.
  • Invest in learning and development and make career trajectories explicit.

5. Build Real Belonging

  • Inclusion must show up in daily interactions, not just company values documents.
  • Inclusive environments where diverse perspectives are genuinely sought produce better decisions and stronger engagement.
  • Gen Z quickly notices when DEI is performative. Build it into everyday interactions.

6. Connect Work to Purpose

  • Gen Z wants to see how their work matters in a direct, traceable way.
  • Linking individual roles to tangible business outcomes increases ownership and engagement.
  • Purpose-driven work isn’t a perk. It’s a retention strategy.

7. Prioritize Well-Being

  • Burnout is a performance problem before it becomes attrition.
  • Mental health support, sustainable workloads, and genuine flexibility reduce stress and sustain engagement.
  • Policies must be real in practice. Gaps erode trust.

How to Attract Gen Z from the Start

Job Descriptions That Tell the Truth

  • Generic postings don’t convert Gen Z candidates. They want specifics: remote or hybrid expectations, real growth opportunities, and culture in practice.
  • Transparent job descriptions attract better-fit candidates and reduce early attrition.

Skills Over Experience

  • Gen Z and organizations hiring them increasingly value potential over tenure.
  • Skills-based hiring opens access to a broader, more diverse talent pool and builds teams equipped for change.
  • Hire for capability and future-readiness, not just years on a resume.

The Bottom Line

Retaining Gen Z isn’t about perks. It’s about rethinking the employee experience from the ground up.

  • Flexibility without accountability fails.
  • Purpose without visibility is hollow.
  • Growth that isn’t visible or structured drives attrition faster than most organizations realize.

The payoff: When organizations combine the right technology, real flexibility, continuous feedback, visible growth paths, and genuine inclusion:

  • Gen Z doesn’t just stay. They perform at a higher level.
  • Adaptive, future-forward thinking compounds over time.

That’s what separates organizations that thrive in today’s talent market from those constantly replacing people who left for somewhere better.

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