PwC’s FinTech Insights April 2018 PwC’s FinTech Insights

Our insights From around FinTech tales Fostering a Contacts the web FinTech ecosystem

2 PwC PwC’s FinTech Insights PwC’s FinTech Insights

Our insights From around the web FinTech tales Fostering a FinTech ecosystem Contacts

An exclusive look at the latest developments and evolving technologies in the FinTech space Towards a more mature innovation ecosystem The FinTech revolution, although three years old, continues to usher in exciting and innovative solutions using next generation technology. One of the key developments has been active and extensive collaboration between incumbent banks and FinTechs in order to embed innovative solutions into mainstream banking post hackathons and demo day events. has been at the forefront of this trend. Let’s look at its innovation journey and how PwC collaborated with the bank to drive various innovation themes. Read more.

3 PwC PwC’s FinTech Insights PwC’s FinTech Insights

Our insights From around the web FinTech tales Fostering a FinTech ecosystem Contacts

Global insights handpicked by PwC linking to bank Fintech firms ask accounts mandatory under KYC UIDAI to restore e-KYC, norms, says RBI authentication access The Reserve Bank of (RBI) has made linking of national As many as two dozen companies, including PhonePe, PayU India, biometric ID Aadhaar to bank accounts mandatory as part of its , Razorpay, have filed a petition with the CEO of the Unique updated ‘Know Your Customer (KYC)’ guidelines. This, however, will Identification Authority of India (UIDAI) after the government run be subject to the final decision of the Supreme Court on making of organization revoked access to agencies that provide e-KYC verification Aadhaar mandatory, RBI said in a circular. and authentication services for fin-tech companies.

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4 PwC PwC’s FinTech Insights PwC’s FinTech Insights

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Global insights handpicked by PwC As India’s ATMs run dry, digital Blockchain payment companies make a revolutionising the killing again fintech capital of India It’s a bit like November 2016 all over again for Indian digital payment The blockchain is the invisible technology that is radically transforming companies. With ATMs in several parts of the country running the future of the world economy and gaining traction in the capital dry, their platforms are seeing a spike in transactions. On April 19, markets industries. Big corporations are racing to build blockchain Bengaluru-based PhonePe said it has seen a 20% increase in the value platforms. The technology will disrupt the future of digital of peer-to-peer transactions on its app over the past few days. transformation across industries and businesses. The blockchain is a digitized, distributed, decentralized, and incorruptible public ledger Read more. of all digital assets and economic transactions that are recorded in chronological order within a worldwide network called peer-to-peer (P2P) of distributed ‘nodes’ or computers.

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5 PwC PwC’s FinTech Insights PwC’s FinTech Insights

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Global insights handpicked by PwC RBI asks payments companies to store data in India, may affect foreign players The RBI mandated all payment system operators to store data within the country by September. The development comes at a time when global tech giants like Google and the Facebook-owned WhatsApp have entered the domestic digital payments sector, which has also sparked a debate over data privacy and security.

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6 PwC PwC’s FinTech Insights PwC’s FinTech Insights

Our insights From around the web FinTech tales Fostering a FinTech ecosystem Contacts

News on recent investments and partnerships in FinTech in India Investments

Company Capital Float Company Coverfox

Sector Lending Sector Insure-tech

Ticket size 22 million USD Ticket size 22 million USD

Investor(s) Amazon Inc. Investor(s) IFC and Transamerica

Capital Float is a digital finance company which Coverfox lets customers compare and choose Company overview provides collateral-free unsecured business Company overview the best insurance plan from a wide variety of loans in India via its online platform. available options.

Source: https://www.livemint.com/Companies/ Source: https://yourstory.com/2018/04/coverfox-chai-point-raise- WWAHSskKEYvlmcNRyXeQ6H/Capital-Float-raises-22-million-equity- series-c-funding-trucaller-crosses-100-m-daily-active-users-daily- funding-from-Amazon.html capsule/

7 PwC PwC’s FinTech Insights PwC’s FinTech Insights

Our insights From around the web FinTech tales Fostering a FinTech ecosystem Contacts

News on recent investments and partnerships in FinTech in India Investments

Company True Balance Company Kaleidofin

Sector Sector HR tech

Ticket size 23 million USD Ticket size 2.8 million USD

Line Ventures Corporation, Naver, TS Investor(s) Investor(s) Omidyar Network, Blume Ventures and others Investment and others

True Balance is a balance management utility application for mobile users. It is a one-stop Kaleidofin propels customers to meet their solution for customers to check telecom Company overview Company overview real-life financial goals by providing them with operator-related messages, offers, mobile intuitive and tailored financial solutions. data, talktime balance, etc. The app also lets customers recharge their phones.

Source: http://www.thehindu.com/business/true-balance-gets-23-mn- Source: https://inc42.com/buzz/omidyar-network-led-2-8-mn-seed- in-funding/article23620306.ece funding-round-in-fintech-startup-kaleidofin/

8 PwC PwC’s FinTech Insights PwC’s FinTech Insights

Our insights From around the web FinTech tales Fostering a FinTech ecosystem Contacts

News on recent investments and partnerships in FinTech in India Investments

Company PhonePe Company Aye Finance

Sector Digital wallet Sector Lending

Ticket size 77 million USD Ticket size 4.6 million USD

Investor(s) Investor(s) BlueOrchard Finance Ltd

PhonePe is a mobile payments app that allows Aye Finance is a new-age finance company Company overview users to pay for their utility bills and carry out Company overview which provides business loans to small and P2P transfers in a cashless form. micro enterprises in India.

Source: http://www.bgr.in/news/flipkart-payments-to-reportedly- Source: https://inc42.com/buzz/online-lending-startup-aye-finance- invest-rs-518-crore-in-phonepe/ funding-blueorchard/

9 PwC PwC’s FinTech Insights PwC’s FinTech Insights

Our insights From around the web FinTech tales Fostering a FinTech ecosystem Contacts

News on recent investments and partnerships in FinTech in India Partnerships

Start-up PhonePe Start-up

Partnered with MMTC-PAMP Partnered with Fresh Menu

Sector Payments Sector Payments

To allow customers to purchase gold from the With this partnership, customers would be Purpose PhonePe application. This partnership will offer able to experience a one-click purchase using Purpose customers choice in terms of the grade of gold. Amazon Pay and avail various offers, weekend deals, as well as cashbacks. Source: https://www.medianama.com/2018/04/223-phonepe-gold- Source: https://www.news18.com/news/tech/amazon-pay-partners- mmtc-pamp/ with-freshmenu-for-digital-payments-1724331.html

10 PwC PwC’s FinTech Insights PwC’s FinTech Insights

Our insights From around the web FinTech tales Fostering a FinTech ecosystem Contacts

News on recent investments and partnerships in FinTech in India Partnerships

Start-up MobiKwik Start-up Nuance

Partnered with Tamil Nadu State Electricity Board Partnered with

Sector Payments Sector Artificial intelligence

Through this partnership, a subscriber would To launch an AI-powered voice bot with Kotak Purpose be able to pay utility bills using his/her Purpose Mahindra Bank’s phone banking helpline. The Mobikwik wallet. bot is named ‘Keya’.

Source: https://economictimes.indiatimes.com/small-biz/startups/ Source: https://economictimes.indiatimes.com/industry/banking/ newsbuzz/mobikwik-ties-up-with-tamil-nadu-electricity-board-for- finance/banking/kotak-mahindra-bank-launches-new-ai-powered- online-bill-payments/articleshow/63802656.cms voice-bot/articleshow/63582558.cms

11 PwC PwC’s FinTech Insights PwC’s FinTech Insights

Our insights From around the web FinTech tales Fostering a FinTech ecosystem Contacts

News on recent investments and partnerships in FinTech in India Partnerships

Start-up Amazon Pay

Partnered with HDFC Bank

Sector Payments

To offer EMI on debit card transactions for Purpose HDFC Bank customers.

Source: https://economictimes.indiatimes.com/small-biz/ startups/newsbuzz/amazon-pay-to-offer-emi-on-debit-cards/ articleshow/63724013.cms

12 PwC PwC’s FinTech Insights PwC’s FinTech Insights

Our insights From around the web FinTech tales Fostering a FinTech ecosystem Contacts

PwC collaborates with FinTechs to help augment their growth plans and bring about the next wave of disruption.

Access the market Grow Validate Win

We leverage our strategic We provide advisory on human We vet capabilities of artificial We co-create and partner relationships with client’s in the capital, tax, regulatory and intelligence/machine learning with FinTechs to create BFSI segment to help FinTechs compliance requirements. On the solutions and provide solutions to meet market needs. use the right products to reach a funding side, we assist FinTechs certification/advice on The combination of the best wider audience. in creating business plans, improvements. This third-party capabilities of both PwC and pitches and other mandatory assessment helps boost trust in FinTechs helps create winning aspects. We thus help create Fintech products in the market. go-to-market strategies. a sustainable business and operating model.

We will be happy to connect with you to understand your priority areas and discuss ways to engage.

13 PwC PwC’s FinTech Insights PwC’s FinTech Insights

Our insights From around the web FinTech tales Fostering a FinTech ecosystem Contacts

PwC collaborates with incumbents to help them achieve next level innovation through new-age technologies.

Innovation Strategy to leverage management FinTech assessment Strategic investments FinTechs programme

We brainstorm with firms on For firms seeking improvements We conduct due diligence of the We work with financial key pain areas, use cases and in their core platforms or business and operating models institutions to understand the requirements and map them to a operating model, we assess of FinTechs on behalf of clients. objectives of their proposed set of prioritised strike zones. innovative solutions developed This third-party assessment FinTech investments. We then We then scan and scout for by FinTechs. We then devise helps firms build trust in the apply our evaluation matrix to the best fit market solutions, ways to embed the solutions health of FinTech firms before the FinTech pool to arrive at a set leveraging our proprietary and achieve the desired collaborating with them. of best-fit FinTechs for strategic databases with a focus on next objectives. investments. generation technology. We then conduct focused workshops, hackathons and PoC sprints of solutions before embedding them into mainstream banking.

We will be happy to connect with you to understand your priority areas and discuss ways to engage.

14 PwC PwC’s FinTech Insights PwC’s FinTech Insights

Our insights From around the web FinTech tales Fostering a FinTech ecosystem Contacts

Leadership

Vivek Belgavi Zubin Tafti Vivek Iyer Partner and India FinTech Leader Associate Director, FinTech and Partner, Risk Assurance Email: [email protected] Innovation Strategy Kuntal Sur Email: [email protected] Partner and Leader Vaidison Krishnamurty Phone: +91-9820358735 Partner, Deals – Risk and Regulation Harshal Kamdar Joydeep K Roy Partner, Tax and Regulatory Services Partner, Insurance and Allied Businesses

Contributors

Richa Gaur Aiman Faraz Shekhar Lele Strategy Consultant, FinTech Strategy Consultant, FinTech Strategy Consultant, Payments Krunal Kapadiya Nissar Behera Namrata Kacholia Senior Consultant, FinTech Strategy Consultant, FinTech Strategy Consultant, Payments Gaurav Arora Pratik Patrhabe Strategy Consultant, FinTech Strategy Consultant, FinTech

15 PwC PwC’s FinTech Insights About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 158 countries with more than 2,36,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com In India, PwC has offices in these cities: Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai and Pune. For more information about PwC India’s service offerings, visit www.pwc.com/in PwC refers to the PwC International network and/or one or more of its member firms, each of which is a separate, independent and distinct legal entity. Please see www.pwc.com/structure for further details. © 2018 PwC. All rights reserved

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Data Classification: DC0 This document does not constitute professional advice. The information in this document has been obtained or derived from sources believed by PricewaterhouseCoopers Private Limited (PwCPL) to be reliable but PwCPL does not represent that this information is accurate or complete. Any opinions or estimates contained in this document represent the judgment of PwCPL at this time and are subject to change without notice. Readers of this publication are advised to seek their own professional advice before taking any course of action or decision, for which they are entirely responsible, based on the contents of this publication. PwCPL neither accepts or assumes any responsibility or liability to any reader of this publication in respect of the information contained within it or for any decisions readers may take or decide not to or fail to take. © 2018 PricewaterhouseCoopers Private Limited. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers Private Limited (a limited liability company in India having Corporate Identity Number or CIN : U74140WB1983PTC036093), which is a member firm of PricewaterhouseCoopers International Limited (PwCIL), each member firm of which is a separate legal entity. AW/May2018-12734