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iSPIRT – Indian Software Product Industry Round Table is a non-profit think tank formed by leading practitioners of the industry
to assist in the cause of building a healthy, globally-competitive and sustainable industry. Visit www.ispirt.in for more details.
Towards presence-less, paperless, and cashless service
delivery
2
125 Years of Power Generation
Edison to Now
3
125 Years of Telecom
Graham Bell to Now
Layered Innovation
4
Mass Flourishing!
5
TCP / IP, Internet, SMTP (Email), GPS
Fundamental Technology Innovations, Govt. Funded, Publicly
Available
Payments Visa/Master, ApplePayEvolution of Payment Systems,
Security Frameworks, ...
Open APIs, Platforms Google MapsLarge Scale Infrastructure, Private
Companies,
Smart Phones Android, IOSTelecommunications & Computing
Technologies - Hardware Innovations
T E
C H
S
T A
C K
Layering of Innovation
Govt. Technology
eCommerce(Amazon)
Taxi(Uber)
Hotel(Airbnb)
------
An ‘hourglass’ platform architecture
Allows innovation on all sides
● Minimal● Standardized● Simple design● Easy to execute● Easy to write a law
Applications
6
Devices
UPIAEPS
esign
DBT
APB
Digital locker
Other apps
Phones
Micro ATM
Tablets
FP/Iris sensors
Check-in Device
J A M - The Foundation of the India Stack
7
Pradhan Mantri Jan Dhan YojanaBANKING FOR ALL
8Source: As on 29 Mar 2016, http://pmjdy.gov.in
Accelerated by Regulatory Innovation
Source: News Reports 9
BANK NATIONALIZATION
New Banks
1969 1980 1993 2001 2014
2015
+14+6
+10+2 +2
+2149 Years, 14 New Banks in 3 Months
Ushering in a new ERA of
DIFFERENTIATED BANKING
Aadhaar: 1 Billion in 5.5 Years
950M
600M
300M
100M
50M
Source: Data from http://www.uidai.gov.in 10
1B
The rise of smartphones
Current sales
about 25M smartphones per quarter
Source: Ericsson Mobility Report 11
The Evolution of the India Stack - Built on JAM
12
2010 2011 2012 2013 2014 2015 2016
950 M
1005 M
190 M
Aadhaar
Mobile
JDY
2009
944 M
600 M
100 M
Source: Ericsson Mobility Report, PMJDY, Aadhaar Web Sites
AEPS
APB
Aadhaar Authentication
Aadhaar eKyc
eSign
UPI
Consent Architecture
Digilocker
1+ B
1+ B
250+ M
Name DoB/Age Gender Address Mobile/Email
1234 5678 9012
UniqueLifetime
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AadhaarAuthentication
NO MORE PHYSICAL PRESENCE
Are you who you claim to be?Only a yes/no answer
Anytime anywhere14
Aadhaare-KYC
NO MORE PHOTOCOPIES!
Access ONLY via authenticationNo more fake identities
No more paper
15
Existing DSC non-scalable due to physical verification, paper process, and use of dongles
eSign allows all Aadhaar holders to digitally sign anytime anywhere
Open API based, allowing applications to easily integrate
eSign - eliminating wet signature
16Source: http://www.cca.gov.in/cca/?q=eSign.html
Digital Locker - eliminating fake papers
Open API based
Ecosystem driven
Digitally protected
Source: https://digilocker.gov.in 17
DigiLockerIssuer Requestor
Users
Issues Documents Digitally
Accesses Documents Online
Approves Access
Unified Payment Interface
18Source: http://www.npci.org.in
Instant
Push & pull
Virtual addresses
Smartphone as card
Smartphone as PoS
1-click 2 FA
Electronic Consent Architecture
Data Consumers (Banks,Credits Providers etc)
DIGITAL LOCKER
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All "data sharing" to be "via" the "owner" with "consent"
"Owner" of the data can "electronically request" his/her data and store in his/her "digital locker"
"Owner" can "choose" to share the data "for a purpose" using "electronic
consent"
Data Providers (Banks,Telco, Hospitals,etc)
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PRESENCE-LESS LAYER Aadhaar AuthenticationUnique digital biometric identity
with open access of nearly a Billion users
CONSENT LAYER Open Personal Data StoreProvides a modern privacy data
sharing framework
PAPERLESS LAYERAadhaar e-KYC,
E-sign, Digital LockerRapidly growing base of paperless systems with billions of artifacts
CASHLESS LAYER IMPS, AEPS, APB, and UPIGame changing electronic payment systems and transition to cashless
economy
COMMERCE(GSTn)
CREDIT(RBI)
INVESTMENTS(SEBI)
OTHERS
I N D
I A
S
T A
C K
SKILLS
JAM Jan Dhan, Aadhaar, Mobile
21
We will go from data poor to data rich nation in 5 Years!
Digital Identity
Paperless Process
Commerce
Payment
Social
Machine Learning & Algorithms
Cashless, Paperless & Presence-lessService Delivery
Nandan Nilekani, 2015 22
The phone will replace the card as the ‘What you Have’ authentication factor
WHAT YOU
KNOW
WHAT YOU
HAVE
WHOYOUARE
PIN / Password Card Proof of Identity
Nandan Nilekani, 2015 23
Combining Security with Convenience
Biometric smart phones enable 1-click 2-factor authentication
WHAT YOU
KNOW
WHAT YOU
HAVE
WHOYOUARE
Smart Phone Aadhaar
Nandan Nilekani, 2015
The future is here!
Smartphones with integrated Iris recognition available!
24Source:http://mashable.com/2015/05/13/japanese-smartphone-mobile-payments/
Providing credit without friction
25
Why Rajni Cannot Get A Loan?
26
Customers with the lowest default rates have the highest interest rates
Sales Costs
No Credible
Data
Servicing Costs
Need a loan
Sees loan
offers
Accepts best offer
Receives loan
Sells Goods
Repays loan
Agrees to share
data
27
7 Key Steps For Rajni to get a small intra-day loan
Consent Architecture
Credit marketplace
app
Credit market-
place
paperless contract
Transaction a/c & app
Payment app
Payment app
Need a loan
Sees loan
offers
Accepts best offer
Receives loan
Sells Goods
Repays loan
Agrees to share
data
28
Each step requires a solution
Need a loan
Sees loan
offers
Accepts best offer
Receives loan
Sells Goods
Repays loan
Agrees to share data
Consent Architecture
Credit marketplace
app
Credit market-
place
paperless contract
Transaction a/c & app
Payment app
Payment app
Aadhaar/eKYC
digilocker
API for loan
offers
eSign Digilocker
UPI
authorization
api
UPI
UPI
29
Each solution is enabled by the India Stack
30
Cashless & Paperless
Digital Footprints
BusinessMicro-Credit
Business Growth
Feeling of Wellbeing
Virtuous Cycle of Credit to the first mile
Solution
Making investments accessible
31
32Source: NCAER-CMCR survey, www.openthemagazine.com, discussions with ScripBox
Onboarding Cost
Break Even Investment
Target Market Size
Rs 1500 Rs 300,000 3M Households
Rs 100 Rs 20,000 34M Households
Rs 10 Rs 2,000 105M Households
Sachet Sized Transactions!
With reduced costs, minimum ticket sizes will come down, volumes will go up!
33
TXn Cost Comm. Break Even Ticket Size
Rs 50 50 bps Rs 10,000
Rs 5 50 bps Rs 1,000
Rs 2 50 bps Rs 400
To Increase Market Size 10x or 50x
Cost of Doing Business Must Come Down!
34
Enabling The Skills Marketplace
35
The Skills Problem
Low trust environmentEmployers do not trust credentials
Training is not a differentiatorNo premium for quality
No accumulation of skill credentialsLack of mobility
Vicious Cycle
36
37
Training, Apprenticeship & Certification
TrustedCredentials
Employment
Credible History
Differentiated Earnings
Virtuous Cycle for Skills
Guru-Shishya ParamparaEcosystem of
institutes/agencies
Aadhaar, Digital Locker for portability
and trust
Market places like LinkedIn, Babajobs, etc.
Jeevan Pramaan Re-imagined
38
Govt Center
Nearby Shop
Home Service
Any individual or agency
Choice of location
Trust established digitally
Mobile phone with biometrics
No paper work
Using Aadhaar biometric auth,
eKYC, eSIgn, and UPI
39
India Stack as Digital Infrastructure
Regulatory Policy
Market Making Policy via Challenge Grants
100s of Experiments - Low barriers to entry - Level playing field - Aligned to national issues - Rapid success/failure cycle
A robust
foundation to
enable innovative
solutions to
India’s hard
problems
Innovative Solutions to India’s Hard Problems - Commercially Viable - Far reaching consumer impact - Reinforces experimentation
40
Thank You