Learning from Digital India’s innovations · UPI saw ~100k txn/month. UPI was at 145 Mn Txns in ... India’s Digital Rocket further boosted by India Stack Rapidly growing base

Learning from Digital India’s innovations

Sahil Kini, August 2018

India has a strong foundation

Laid the foundation with JAM : Jandhan, Aadhaar, Mobile

3

Mobile Connections

Aadhaar Enrolments

Unique Bank Accounts

Internet Users

1.21 Bn

1.19 Bn

500M

462M

Social Media Users

375M

India’sDigital Push

India’sDigital Rocketfurtherboosted byIndia Stack


A unique digital biometric identity with open access of nearly a Billion users

PRESENCELESS LAYER

Name DoB/Age Gender Address Mobile/Email

1234 5678 9012

UniqueLifetime

AadhaarAuthenticationNO MORE PHYSICAL PRESENCE

Are you who you claim to be?Only a yes/no answer

Anytime anywhere

The usage is coming primarily from Govt, Banks & Telcos

8.4 BN Aadhaar Authentications in 2017 (10,000x in 5 years)

There are now 5x as many Aadhaar Authentications daily (64 mn) than Card Transactions at PoS (12.7 Mn)

Source: UIDAI website

Mon

thly

Cum

ulat

ive


Rapidly growing base of paperless systems with billions of artifacts

PAPERLESS LAYER


PRESENCELESS LAYER

Aadhaare-KYC

NO MORE PHOTOCOPIES!

Access ONLY via authenticationNo more fake identities

No more paper

3.4 Billion eKYCs in 2017

Regulatory pressures to validate customers has given eKYC a huge boost. Of the 3.4 Bn total eKYCs ever, only 0.4 Bn were before Nov 2016

About a third of the usage is forTelecom. Other prominent use cases are for opening of financial services accounts


Mon

thly

Cum

ulat

ive

eSign - eliminating wet signature

Application Service Provider (ASP)

1.Online request for Digital Signature

2. Request for PoA/PoI Data

4. Online Instant Digital Signature

Issued

3. PoA/PoI Through eKYC

eSign Service Providers (ESP)

UIDAI (for Aadhaar

eKYC)

eSign allows all Aadhaar holders to digitally sign anytime anywhereOpen API based, allowing applications to easily integrate

Residents needing to sign a document

eSigns issued in 2017 alone

It took 15 years to issue 18M digital signatures through hardware

Top use cases for e-Sign

● A/C opening for Payment Banks & financial products

● Social welfare departments ● Telecom

Big push soon as every GST filing requires digital signatures

33 Million

Source: Tweet by Dr. Ajay Kumar

Digital Locker - eliminating fake papers

Open API based

Ecosystem driven

Digitally protected

Source: https://digilocker.gov.in

Multi-provider Digital Locker

EcosystemIssuer Requestor

Users

Issues Documents Digitally

Accesses Documents Online

Approves Access

No Physical Papers No Fake Documents

Documents issued on Digilocker2.4 Billion

Users registered on Digilocker12.5 Million

Source : DigiLocker Dashboard

53 issuers including UIDAI, Ministry of Road Transport & Highways, and CBSE

21 requestors including Bajaj Allianz Insurance, UTI, and Government e-Market

MeitY notified Digital Locker Authority of India [DLAI] in Feb 2017 & amended IT Act

Licensing applications have been invited



PAPERLESS LAYER

Game changing electronic payment systems and transition to cashless

CASHLESS LAYER


PRESENCELESS LAYER

Validation & Assurance

Virtual Payment Address

Minimal Issuer/Acquirer Cost

Ubiquitous - Bank accounts

Easy Immediate Payments

Timely Notification

Unified Payment Interface

Push & Pull Payments

@Every one with a bank account can send money to any bank account in India!

Real-time postingFunds are not locked

Immediate notifications of the payment made

Payments can be initiated by payer or payee.

Real-time validation of the account and balance

No need to disclose account information.Allows account portability, enhances privacy.

Smartphone replaces card and PoS machine

Right before demonetization, UPI saw ~100k txn/month.

UPI was at 145 Mn Txns in Dec’17 and 190 Mn in May’18

More transactions on UPI in 18 months than on Credit Cards in 18 years!

Source: RBI website

UPI doing more transactions than credit cards in 18 months

PROCEED

Inform Recipient

UPI ID

VALIDITY

AMOUNT

FREQUENCY

DEBIT DAY

lendera@upi

1 JAN 2018 31 Mar 2018

4000₹ Fixed Max

Monthly

On

Lending A Company

E-mandate on UPI 2.0

Large Players Have Entered, UPI 2.0 Anticipated

Recently launched

Coming Next

Early Players

19Source: Public data and NPCI website



PAPERLESS LAYER

Game changing electronic payment systems and transition to cashless

CASHLESS LAYER

Provides a modern privacy data sharing framework

CONSENT LAYER


PRESENCELESS LAYER

Electronic consent architecture

Data Consumers (Banks,Credits Providers etc)

CONSENT Collector

Data Providers(Banks,Telco,Hospitals,etc)

Consent Flow Digitally signed consent

artifact

Data FlowSecure data sharing based

on consent

● Consistent with current legal frameworks and compliant with IT Act

● User-Centric: User controlled data sharing

● Auditable and Non-Repudiable

● Trust of data established through digitally signed documents

PRESENCE-LESS LAYER Aadhaar AuthenticationUnique digital biometric identity with open access of nearly a Billion users

CONSENT LAYERData Empowerment &

Protection Architecture (DEPA)

Provides a modern privacy enabling 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

Instead of inventing more

“Solutions”

Government is innovating more

"lego blocks"

Platforms give rise to more Platforms!

Bharat Bill Payment System

Goods & Services Tax Network

DIKSHA

National Health Stack

Digital Sky

Electronic Toll Collection - FasTag


Democratizing access to shared infrastructure

Dramatically reducing cost of experimentation thus spurring

100's of innovations

Affordable solutions can be built extremely fast for scale of a billion!

These platforms are opening up new solution pathways

Why is the India Stack disruptive?

Impact of the India Stack - Large Bank

Retail Customer Onboarding Reimagining the User journey with Aadhaar, eKYC, e-Sign and Digital Locker

Source: McKinsey & Company - Financial Services and Digital practices

Turnaround Time down from

6 days to 1 hour

Reduced Drop Offs First Time Right> 99%

Branch Capacity

Freed up by 10%Back Office

No longer required

Impact of the India Stack - Large Asset Manager

Source: McKinsey & Company - Financial Services and Digital practices

Transaction Time down from

4 hours to 2 mins

Reduced Operational cost Improved customer retention

Statement Processing time down from

1 hour to < 1 minCapacity

Freed up for lead generation

Reimagining Channel Management - Digital Transformation with Aadhaar eKYC

Impact of the India Stack - New Telecom

Source: Conversations

On boarding time Time down from

1 day to 10 mins

Saved Rs 15 / SIM issued Saved 15,000 Trees

Onboarding Rate

50M in < 2 monthsCustomer Experience

"Walk Out Working"

Customer Onboarding - Digital Transformation with Aadhaar eKYC

Photograph is public domain. License info:All photos published on Unsplash are licensed under Creative Commons Zero which means you can copy, modify, distribute and use the photos for free, including commercial purposes, without asking permission from or providing attribution to the photographer or Unsplash.CREATIVE COMMONS ZERO: http://creativecommons.org/publicdomain/zero/1.0/

Completely digital 5 minute lending process

http://creativecommons.org/publicdomain/zero/1.0/

http://www.youtube.com/watch?v=JML8qi-opRQ

Thank You

Appendix

Providing credit without friction

No Credible Data

Servicing Cost

Sales Cost

In today’s model, Rajni can never get a loan!

Customers with the lowest default rates

have the highest interest rates

Need a loan

Sees loan

offers

Accepts best offer

Receives loan

Sells Goods

Repays loan

Agrees to share data

7 Key Steps For Rajni to get a small intra-day loan

Consent Architecture

Credit marketplace app

Credit marketplace

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


Each step requires a solution

Need a loan

Sees loan offers

Accepts best offer Receives loan

Sells Goods

Repays loan


Consent Architecture

Credit marketplace app

Credit market-pl

ace

paperless contract

Transaction a/c & app

Payment app

Payment app

Aadhaar/eKYC

digilocker

API for loan

offers

eSign Digilocker

UPI

authorization

api

UPI

UPI

Each solution is enabled by the India Stack

Cashless & Paperless

Digital Footprints

BusinessMicro-Credit

Business Growth

Feeling of Wellbeing

Virtuous Cycle of Credit to the first mile

Millions of Borrowers

Data DrivenAlgorithm Driven

Consented Data SharingEnabled by Mobile

Electronic ContractsDigital Payments

Credit Marketplaces

Thousands of Lenders

Digital Footprints

Credit at scale

Starting with 30 Mn accounts in Sep-2014, India crossed 300 Mn Jandhan accounts in Sep-2017

Source: UIDAI website, PMJDY Website, as of Feb-2018

Aadhaar-Seeded Bank Accounts

921 Mn

Unique Bank Account Holders

597 Mn

10X number of Jandhan Bank Accounts in 3 years

90% Indians now have a digital identity

Source: UIDAI website, The Hindu report

99% of adults in India have an Aadhaar Number

22 States and UTs have Aadhaar Saturation > 90%

Indians are mobile-first & data hungry!

Source: COAI, TRAI, NITI AAYOG

Smartphones in Indian Market347 Mn

Mobile Data Consumption per month1,500,000,000 GB

Total number of data connections increased 24% from 330 Mn in June ‘16 to 409 Mn in June ‘17.

India has overtaken US to become the world’s 2nd largest smartphone market and the world’s largest consumer of mobile data

Goods & Services Tax Network

Machine-readable matched invoices

API-driven platform for tax filing, invoice upload

10 Million+ businesses enrolled

1 Billion+ invoice lines per month

$12 Billion+ (INR 90K Cr) monthly collection

A repository of matched invoices for taxes

Source: public data on GST

National Electronic Toll Collection - FasTag

Unique Vehicle ID and linked prepaid wallet

API based platform for authentication & payment

2.5 Million+ tags issued so far

Live in 375+ toll plazas collecting >24% of total toll

>17 Million transactions a month (within a year)

Mandated for every vehicle from Dec '17

An ID + wallet for every vehicle

Source: https://www.npci.org.in/netc-adding-speed-india’s-highway-network

Bharat Bill Payment System

Common Bill Collection and Payment Platform

Open APIs for Bill Fetch, Payment Messaging

Generates data even for cash payments!

1 Billion bills paid every month in India!!

Every Biller on one platform

A set of digital infrastructures such as Registries, Universal coverage,

PHR, National Analytics, etc.

Registries with Open API for e-verification of health providers

Federated PHR to empower everyone

Universal coverage platform for 400 Million+ people!

National Health Stack

Digital infrastructure for health

An API driven learning platform

Empowering 10 million teachers and 200 million children

built on open source platform sunbird.org

DIKSHA

National platform for teachers and learners

http://sunbird.org

Digital Sky

Drone stack to open up future transportation and airspace

permissioning

API based Registry for drones, operators, & pilots

APIs for digital leasing and easy access

Secure hardware based controls for lease enforcing

No permission, No take-off!

Easy permissions to fly from government