Financial Foresights April 2017 Digital Banking New horizons in a cash-light India Financial Foresights Editorial Team Contents Jyoti Vij [email protected] 1. PREFACE ...... 2 Anshuman Khanna 2. INDUSTRY INSIGHTS ...... 3 [email protected] n Digital Banking - Transforming India ? ...... 5 Bhaskar Som Supriya Bagrawat Country Head [email protected] India Ratings & Research Advisory Services n Digital Banking & Technologies of Tomorrow ...... 8 Amit Kumar Tripathi Rajiv Anand [email protected] Executive Director & Head – Retail Banking Axis Bank n Digital Banking - An Indian Perspective...... 12 Raghavendra Bhat M. About FICCI General Manager Karnataka Bank FICCI is the voice of India's n Making Banking More Human ...... 15 business and industry. K P Sunny General Manager, Digital Banking, Strategic Initiative & Optimization Established in 1927, it is Federal Bank India's oldest and largest n Digital Banking in India ...... 18 apex business organization. Prasanna Lohar Head Technology – Innovation & Architecture FICCI is in the forefront in DCB Bank Limited articulating the views and n ‘SMART Digital Banking Platforms’ for Enriched Customer Experience and concerns of industry. It Growth ...... 24 services its members from the Murali Mahalingam Industry Director, Banking & FS Indian private and public SAP corporate sectors and n Digital Banking - New Horizons in a Cash-light India ...... 28 multinational companies, AKS Namboodiri General Manager IT & IRMD drawing its strength from Dhanlaxmi Bank Limited diverse regional chambers of n Smart Apps & Bots – The New Face of Indian Banking ...... 31 commerce and industry Shantanu Sengupta Managing Director & Head - Consumer Banking Group across states, reaching out to DBS Bank India over 2,50,0000 companies. n New Horizons in Less Cash India...... 34 Deepak Sharma Chief Digital Officer Kotak Mahindra Bank Disclaimer n Digital Banking – The Holy Grail for the Banking Industry ...... 36 All rights reserved. The Sujatha Mohan Head, Digital & New Initiatives content of this publication RBL Bank may not be reproduced in whole or in part without the 3. FICCI'S DATA CENTRE...... 39 consent of the publisher. The n publication does not verify Equity Capital Markets ...... 40 n any claim or other Mergers & Acquisitions ...... 43 information in any n Debt Capital Markets ...... 45 advertisement and is not n Loan Markets...... 47 responsible for product claim n Project Finance ...... 49 & representation. n Investment Banking Revenue ...... 51 Articles in the publication represent personal views of the distinguished authors. FICCI does not accept any claim for any view mentioned in the articles.

Financial Foresights 1 Financial Foresights Editorial Team Contents Jyoti Vij [email protected] 1. PREFACE ...... 2 Anshuman Khanna 2. INDUSTRY INSIGHTS ...... 3 [email protected] n Digital Banking - Transforming India ? ...... 5 Bhaskar Som Supriya Bagrawat Country Head [email protected] India Ratings & Research Advisory Services n Digital Banking & Technologies of Tomorrow ...... 8 Amit Kumar Tripathi Rajiv Anand [email protected] Executive Director & Head – Retail Banking Axis Bank n Digital Banking - An Indian Perspective...... 12 Raghavendra Bhat M. About FICCI General Manager Karnataka Bank FICCI is the voice of India's n Making Banking More Human ...... 15 business and industry. K P Sunny General Manager, Digital Banking, Strategic Initiative & Optimization Established in 1927, it is Federal Bank India's oldest and largest n Digital Banking in India ...... 18 apex business organization. Prasanna Lohar Head Technology – Innovation & Architecture FICCI is in the forefront in DCB Bank Limited articulating the views and n ‘SMART Digital Banking Platforms’ for Enriched Customer Experience and concerns of industry. It Growth ...... 24 services its members from the Murali Mahalingam Industry Director, Banking & FS Indian private and public SAP corporate sectors and n Digital Banking - New Horizons in a Cash-light India ...... 28 multinational companies, AKS Namboodiri General Manager IT & IRMD drawing its strength from Dhanlaxmi Bank Limited diverse regional chambers of n Smart Apps & Bots – The New Face of Indian Banking ...... 31 commerce and industry Shantanu Sengupta Managing Director & Head - Consumer Banking Group across states, reaching out to DBS Bank India over 2,50,0000 companies. n New Horizons in Less Cash India...... 34 Deepak Sharma Chief Digital Officer Kotak Mahindra Bank Disclaimer n Digital Banking – The Holy Grail for the Banking Industry ...... 36 All rights reserved. The Sujatha Mohan Head, Digital & New Initiatives content of this publication RBL Bank may not be reproduced in whole or in part without the 3. FICCI'S DATA CENTRE...... 39 consent of the publisher. The n publication does not verify Equity Capital Markets ...... 40 n any claim or other Mergers & Acquisitions ...... 43 information in any n Debt Capital Markets ...... 45 advertisement and is not n Loan Markets...... 47 responsible for product claim n Project Finance ...... 49 & representation. n Investment Banking Revenue ...... 51 Articles in the publication represent personal views of the distinguished authors. FICCI does not accept any claim for any view mentioned in the articles.

Financial Foresights 1 Preface

inancial Foresights, the flagship quarterly publication of FICCI’s financial sector team, provides a platform to industry, policy makers and other stakeholders to exchange ideas and views on important financial Fsector developments in the country. The current issue of the publication focuses on the topic: ‘Digital banking - New horizons in a cash-light India.’ and presents insightful write-ups contributed by industry leaders from the digital banking space. As you go through the pages of this edition, you would see that all our authors agree that innovation is increasingly becoming a part of the banking system in India. Yes, the speed with which different banks are moving in this direction may vary, but there is agreement that there has to be a well thought out strategy to deliver services to customers in a more efficient manner and at a time and place of customers choosing. There are three trends that are shaping the future of the digital banking space in India. First, is the rapid growth of the more nimble Fintech players that are working to deliver services in a manner never seen before. Banks will have to work alongside such players to improve the customer facing side of their business as well as their own Industry Insights internal processes. Second, the experience of customers in other industries be it e-commerce, healthcare, education or transportation is improving at such a fast pace that they are now expecting similar delivery and interface even in the banking industry. Third, and this perhaps is the most important, is the whole push government is giving to digital economy in the country and which itself is inducing a change in consumer behaviour and making customers ask for more convenience from their banks. While on this subject, one must mention that the way India Stack has developed, we can see this is one of the most transformative platforms created anywhere in the world for delivering services including financial services to people in a very transparent manner. UPI, BHIM app or the Aadhar based payment systems which may not even require one to have a phone for carrying out some of the banking transactions is a fascinating story to follow in itself and the government deserves full credit for ushering in such great innovations in the Indian marketplace. Our authors talk about this and other developments such as ‘wearable banking’, ‘predictive banking’ etc. – all of which are destined to change the face of banking in coming times. In this issue, our financial sector team has tried to highlight the prospects of Digital banking in India and we hope that you will find it an interesting read. We are thankful to all our contributors for sharing their views, insights and perspectives. It is through such a collaborative effort that FICCI facilitates pushing the knowledge frontier for all stakeholders and bringing to light some of the key issues that merit debate and discussion. As always, we look forward to your feedback. With best wishes

Dr. A. Didar Singh Secretary General FICCI

Financial Foresights 2 Financial Foresights 3 Preface

inancial Foresights, the flagship quarterly publication of FICCI’s financial sector team, provides a platform to industry, policy makers and other stakeholders to exchange ideas and views on important financial Fsector developments in the country. The current issue of the publication focuses on the topic: ‘Digital banking - New horizons in a cash-light India.’ and presents insightful write-ups contributed by industry leaders from the digital banking space. As you go through the pages of this edition, you would see that all our authors agree that innovation is increasingly becoming a part of the banking system in India. Yes, the speed with which different banks are moving in this direction may vary, but there is agreement that there has to be a well thought out strategy to deliver services to customers in a more efficient manner and at a time and place of customers choosing. There are three trends that are shaping the future of the digital banking space in India. First, is the rapid growth of the more nimble Fintech players that are working to deliver services in a manner never seen before. Banks will have to work alongside such players to improve the customer facing side of their business as well as their own Industry Insights internal processes. Second, the experience of customers in other industries be it e-commerce, healthcare, education or transportation is improving at such a fast pace that they are now expecting similar delivery and interface even in the banking industry. Third, and this perhaps is the most important, is the whole push government is giving to digital economy in the country and which itself is inducing a change in consumer behaviour and making customers ask for more convenience from their banks. While on this subject, one must mention that the way India Stack has developed, we can see this is one of the most transformative platforms created anywhere in the world for delivering services including financial services to people in a very transparent manner. UPI, BHIM app or the Aadhar based payment systems which may not even require one to have a phone for carrying out some of the banking transactions is a fascinating story to follow in itself and the government deserves full credit for ushering in such great innovations in the Indian marketplace. Our authors talk about this and other developments such as ‘wearable banking’, ‘predictive banking’ etc. – all of which are destined to change the face of banking in coming times. In this issue, our financial sector team has tried to highlight the prospects of Digital banking in India and we hope that you will find it an interesting read. We are thankful to all our contributors for sharing their views, insights and perspectives. It is through such a collaborative effort that FICCI facilitates pushing the knowledge frontier for all stakeholders and bringing to light some of the key issues that merit debate and discussion. As always, we look forward to your feedback. With best wishes

Dr. A. Didar Singh Secretary General FICCI

Financial Foresights 2 Financial Foresights 3 Industry Insights

Digital Banking - Transforming India ?

Bhaskar Som Country Head India Ratings & Research Advisory Services

he buzzword in India today lot of action from various fintech Interface - which allows for swift is creating a cashless future. players to leverage on GoI's digital payment across banks - and finally, TBuoyed by the successful push. a consent architecture system, acceptance of demonetization, the where information is made freely The traditional banking industry is Government of India (GoI) is now available to anyone else for use. thus facing the impact of digital pushing digital transactions. The India thus today stands at the cusp technology. To remain GoI has set a target of 25 billion of a banking revolution through contemporary and relevant, several digital transactions in the next rapid penetration of digital commercial banks have already financial year (FY18) through banking. started aggressively innovating multiple facilities, including digital products and services for However, if one looks at the total platforms such as Aadhar Pay, customers. Meanwhile, India today payment transactions done in the Unified Payment Interface (UPI), offers a unique architecture for months post demonetization, it is Immediate Payment Service (IMPS) digital banking which is not apparent that the big digital push and debit cards. GoI has also available in the US or China. This has not happened. RBI has started launched a mobile application architecture includes an existing reporting payment transaction (Bharat Interface for Money - eKYC (know your client) system statistics for all modes of payments BHIM) for facilitating e-payments and the Aadhaar authentication since November'16 - the volume through bank accounts. The framework, a signature and and value of various types of payments industry is thus seeing a digilocker, the Unified Payments transactions are shown in Exhibit 1. Exhibit 1 Monthly Transaction Volumes Monthly Transaction Values RTGS NEFT CTS RTGS NEFT CTS IMPS NACH UPI IMPS NACH UPI USSD Cards PPI mn units USSD Cards PPI Mobile Banking Mobile Banking 1,200 INR bn 120,000 1,000 100,000 800 80,000 600 60,000 400 40,000 200 20,000 0 0 Nov 16 Dec 16 Jan 17 Feb 17 Nov 16 Dec 16 Jan 17 Feb 17 Source: RBI, IRR Advisory Source: RBI, IRR Advisory RTGS - Real time gross settlement NEFT - National electronic funds transfer CTS - Cheque truncation system NACH - National automated clearing house USSD - Unstructured Supplementary Service Data POS - Point of sale PPI - Prepaid payment instrument

Financial Foresights 5 Industry Insights

Digital Banking - Transforming India ?

Bhaskar Som Country Head India Ratings & Research Advisory Services

he buzzword in India today lot of action from various fintech Interface - which allows for swift is creating a cashless future. players to leverage on GoI's digital payment across banks - and finally, TBuoyed by the successful push. a consent architecture system, acceptance of demonetization, the where information is made freely The traditional banking industry is Government of India (GoI) is now available to anyone else for use. thus facing the impact of digital pushing digital transactions. The India thus today stands at the cusp technology. To remain GoI has set a target of 25 billion of a banking revolution through contemporary and relevant, several digital transactions in the next rapid penetration of digital commercial banks have already financial year (FY18) through banking. started aggressively innovating multiple facilities, including digital products and services for However, if one looks at the total platforms such as Aadhar Pay, customers. Meanwhile, India today payment transactions done in the Unified Payment Interface (UPI), offers a unique architecture for months post demonetization, it is Immediate Payment Service (IMPS) digital banking which is not apparent that the big digital push and debit cards. GoI has also available in the US or China. This has not happened. RBI has started launched a mobile application architecture includes an existing reporting payment transaction (Bharat Interface for Money - eKYC (know your client) system statistics for all modes of payments BHIM) for facilitating e-payments and the Aadhaar authentication since November'16 - the volume through bank accounts. The framework, a signature and and value of various types of payments industry is thus seeing a digilocker, the Unified Payments transactions are shown in Exhibit 1. Exhibit 1 Monthly Transaction Volumes Monthly Transaction Values RTGS NEFT CTS RTGS NEFT CTS IMPS NACH UPI IMPS NACH UPI USSD Cards PPI mn units USSD Cards PPI Mobile Banking Mobile Banking 1,200 INR bn 120,000 1,000 100,000 800 80,000 600 60,000 400 40,000 200 20,000 0 0 Nov 16 Dec 16 Jan 17 Feb 17 Nov 16 Dec 16 Jan 17 Feb 17 Source: RBI, IRR Advisory Source: RBI, IRR Advisory RTGS - Real time gross settlement NEFT - National electronic funds transfer CTS - Cheque truncation system NACH - National automated clearing house USSD - Unstructured Supplementary Service Data POS - Point of sale PPI - Prepaid payment instrument

Financial Foresights 5 Industry Insights Industry Insights

It is interesting to note that a total December'16 to February'17, while drop to 6.9% in the next 3 months. demonetization. If one assumes that People need to be incentivized so monitoring your every move in the of 744mn transactions (including value-wise the drop has been ~11% Value-wise, mobile banking people using debit or credit cards that they find an economic merit in near future! cheque payments) were done in during the corresponding period. continued to account for 1.2~1.3% increased their usage in the period moving to digital payments. For Finally, there is no doubt that India in Nov'16, which increased to Further, to reach 25 billion of total transactions. post-demonetization - say from an example, GoI may consider digital banking has brought in 1,028mn in Dec'16, only to drop transactions, the number of average of 2.5 times a month to 3.5 providing a percentage cashback of The key issue is that the technology amazing customer experience. subsequently to reach 820mn in transactions needs to increase 2.5 times in November and 5 times in value or a reduction in excise duty interfaces and other advances are However, increased levels of cyber Feb'17. Of course, the data is times from current levels in the next December - then there is only a to buyers who buy over digital merely enablers and not drivers for threats have the potential for representative since the information one year. marginal increase of ~1% in card gateways. The financial incentive shift to digital payment. India causing significant disruptions in on mobile banking payments have population usage for POS sales post has to be lucrative enough for Experts feel that increased continues to be primarily a cash their services apart from risks been aggregated for only 5 banks. demonetization. people not to pay in cash, while smartphones penetration in India economy, suffers from related to sensitive customer From the exhibit, it is apparent that providing GoI detailed information will drive digital banking in India. intermittency in a digital Hence, while India may be information and internet frauds. It NEFT, CTS, NACH and cards on a person's spending to provide The smartphone user base in India infrastructure, and there is prepared to transform into a digital is therefore important to see how account for the bulk of the opportunity to bring under the tax crossed 300mn in 2016 and is reluctance from a large section of economy and may have set up information technology systems transactions by volume (~76%), purview and increase net revenues expected to reach 500mn over the the population to embrace digital enablers in place, the drivers which and data security risks are while RTGS, NEFT and CTS for the GoI. However, to ensure the next 5 years. Thus, digital banking payments. Even spending through can convert people into embracing monitored and managed. account for ~89% of the same, all bank accounts, credit and has the potential to ride on cards has not seen increased digital banking are missing. In a Regulations on digitalization in transactions by value. Based on the debit cards, and other digital smartphone user base and grow traction although they have been country where 3% of the population India are at a nascent stage and above data, it is apparent that banks payment avenues available for an exponentially over the next few around for over two decades. IRR files income tax returns and only their evolution would also be continue to dominate digital individual should be linked to his years. In November, mobile Advisory has analyzed the usage 1% people actually pay income tax, important in charting the way transactions in India. Volume-wise, Adhaar and PAN card. This, of banking accounted for 9.7% of total patterns for debit and credit cards there will be a lot of resistance to forward for disruptive innovations digital transaction has seen over course, brings in the scary transactions by volume, only to post-Janaury'16. The same is actually shift to a cashless India. in the Indian banking space. n 20% reduction between possibility that the State can be presented in Exhibit 2.

Exhibit 2 Credit and Debit Card Usage Patterns mn INR bn 900 3,000 800 2,500 700 600 2,000 500 1,500 400 300 1,000 200 500 100 0 0 Jan'16 Feb'16 Mar'16 Apr'16 May'16 Jun'16 Jul'16 Aug'16 Sep'16 Oct'16 Nov'16 Dec'16 Jan'17 Feb'17

Value. of Transacons - Debit Card (ATM) (INR bn) - RHS Value of Transactions - Debit + Credit Card (POS) (INR bn) - RHS

No. of Transacons - Debit Card (ATM) (in mn) - LHS No. of Transactions - Debit + Credit Card (POS) (in mn) - LHS

Source: RBI, IRR Advisory

As on February 2017, India had withdrawals. The usage of cards for average individual uses his credit Bhaskar Som Country Head, India Ratings & Research Advisory Services (PGDM - IIM, Calcutta, B.Tech (Mechanical) - IIT, Madras, 840mn debit cards and 29mn credit POS transactions increased sharply or debit card 2.5 times a month, the FRM), a Fitch group company, has over twenty years of cross-sector experience in strategy formulation, quantitative analytics cards. From Exhibit 2, it is apparent immediately post demonetization, percentage usage of debit and and risk management. Bhaskar is a member of IMC Chamber of Commerce's International Business Committee and was a that Indians use primarily debit but has then seen downward credit cards for POS transactions member of the Expert Panel Group set up by Ministry of Finance for boosting infrastructure financing in India. Bhaskar has been cards, and that too for ATM correction. Assuming that an was ~10% of total cards in FY'16 till a speaker at various forums on competitiveness, policy insights, innovative funding alternatives and banking trends.

Financial Foresights 6 Financial Foresights 7 Industry Insights Industry Insights

It is interesting to note that a total December'16 to February'17, while drop to 6.9% in the next 3 months. demonetization. If one assumes that People need to be incentivized so monitoring your every move in the of 744mn transactions (including value-wise the drop has been ~11% Value-wise, mobile banking people using debit or credit cards that they find an economic merit in near future! cheque payments) were done in during the corresponding period. continued to account for 1.2~1.3% increased their usage in the period moving to digital payments. For Finally, there is no doubt that India in Nov'16, which increased to Further, to reach 25 billion of total transactions. post-demonetization - say from an example, GoI may consider digital banking has brought in 1,028mn in Dec'16, only to drop transactions, the number of average of 2.5 times a month to 3.5 providing a percentage cashback of The key issue is that the technology amazing customer experience. subsequently to reach 820mn in transactions needs to increase 2.5 times in November and 5 times in value or a reduction in excise duty interfaces and other advances are However, increased levels of cyber Feb'17. Of course, the data is times from current levels in the next December - then there is only a to buyers who buy over digital merely enablers and not drivers for threats have the potential for representative since the information one year. marginal increase of ~1% in card gateways. The financial incentive shift to digital payment. India causing significant disruptions in on mobile banking payments have population usage for POS sales post has to be lucrative enough for Experts feel that increased continues to be primarily a cash their services apart from risks been aggregated for only 5 banks. demonetization. people not to pay in cash, while smartphones penetration in India economy, suffers from related to sensitive customer From the exhibit, it is apparent that providing GoI detailed information will drive digital banking in India. intermittency in a digital Hence, while India may be information and internet frauds. It NEFT, CTS, NACH and cards on a person's spending to provide The smartphone user base in India infrastructure, and there is prepared to transform into a digital is therefore important to see how account for the bulk of the opportunity to bring under the tax crossed 300mn in 2016 and is reluctance from a large section of economy and may have set up information technology systems transactions by volume (~76%), purview and increase net revenues expected to reach 500mn over the the population to embrace digital enablers in place, the drivers which and data security risks are while RTGS, NEFT and CTS for the GoI. However, to ensure the next 5 years. Thus, digital banking payments. Even spending through can convert people into embracing monitored and managed. account for ~89% of the same, all bank accounts, credit and has the potential to ride on cards has not seen increased digital banking are missing. In a Regulations on digitalization in transactions by value. Based on the debit cards, and other digital smartphone user base and grow traction although they have been country where 3% of the population India are at a nascent stage and above data, it is apparent that banks payment avenues available for an exponentially over the next few around for over two decades. IRR files income tax returns and only their evolution would also be continue to dominate digital individual should be linked to his years. In November, mobile Advisory has analyzed the usage 1% people actually pay income tax, important in charting the way transactions in India. Volume-wise, Adhaar and PAN card. This, of banking accounted for 9.7% of total patterns for debit and credit cards there will be a lot of resistance to forward for disruptive innovations digital transaction has seen over course, brings in the scary transactions by volume, only to post-Janaury'16. The same is actually shift to a cashless India. in the Indian banking space. n 20% reduction between possibility that the State can be presented in Exhibit 2.

Exhibit 2 Credit and Debit Card Usage Patterns mn INR bn 900 3,000 800 2,500 700 600 2,000 500 1,500 400 300 1,000 200 500 100 0 0 Jan'16 Feb'16 Mar'16 Apr'16 May'16 Jun'16 Jul'16 Aug'16 Sep'16 Oct'16 Nov'16 Dec'16 Jan'17 Feb'17

Value. of Transacons - Debit Card (ATM) (INR bn) - RHS Value of Transactions - Debit + Credit Card (POS) (INR bn) - RHS

No. of Transacons - Debit Card (ATM) (in mn) - LHS No. of Transactions - Debit + Credit Card (POS) (in mn) - LHS

Source: RBI, IRR Advisory

As on February 2017, India had withdrawals. The usage of cards for average individual uses his credit Bhaskar Som Country Head, India Ratings & Research Advisory Services (PGDM - IIM, Calcutta, B.Tech (Mechanical) - IIT, Madras, 840mn debit cards and 29mn credit POS transactions increased sharply or debit card 2.5 times a month, the FRM), a Fitch group company, has over twenty years of cross-sector experience in strategy formulation, quantitative analytics cards. From Exhibit 2, it is apparent immediately post demonetization, percentage usage of debit and and risk management. Bhaskar is a member of IMC Chamber of Commerce's International Business Committee and was a that Indians use primarily debit but has then seen downward credit cards for POS transactions member of the Expert Panel Group set up by Ministry of Finance for boosting infrastructure financing in India. Bhaskar has been cards, and that too for ATM correction. Assuming that an was ~10% of total cards in FY'16 till a speaker at various forums on competitiveness, policy insights, innovative funding alternatives and banking trends.

Financial Foresights 6 Financial Foresights 7 Industry Insights Industry Insights

transforming business designs, Some of the traditional players in payments to different merchants industries, markets and organiza- banking have been very agile in without the hassle of typing one's Digital Banking & Technologies tions. Major business and technol- experimenting with new age card details, or net-banking ogy advancements, such as the technologies such as Artificial password. UPI is built on top of the of Tomorrow Internet of Things, 3D printing, and Intelligence and Block-chain. Banks IMPS, which we have used to machine learning combine to and non-banks are innovating and instantly transfer money between disrupt existing business models Indian ecosystem as a whole is accounts with different banks. All money transfers with UPI are Rajiv Anand and create an opportunity for gearing up for digital. entirely new ones. Digital technolo- secured with the two factor Executive Director & Head – Retail Banking gies build on each other with wave Technologies of Future authentications as mandated by RBI Axis Bank after wave of innovation. - the first factor being your phone Two very important developments and the Mobile PIN as the second. Customer expectations for banking have the potential to herald a new UPI is likely to benefit overall services (both offline and online) age of digital payments - the payments ecosystem as the are being reset by the experiences rapidly growing smartphone payments service can be provided being provided by retailers and penetration and the proliferation of nnovation is among the most financial activity - from banking to Not many would have believed us! by banks to the merchant with an online providers, elsewhere. bank accounts. India has over a powerful forces that continue payments to wealth management But mobile banking is a reality entry level smartphone and there is Thanks to companies like Google, billion mobile connections with to shape human society. The and more - is being re-imagined by today with more than 100 million no need to install POS machine at I Amazon, Apple, Uber and our very around 240 million smartphone advances in the material standard some tech savvy banking incum- transactions a month. By the year the place of business. users and is expected to grow to 520 of living enjoyed by most (though bents as well as by startups. 2030 most of today's technology own e-commerce firms; customers million by 2020 as per a report on Blockchain is another such new not all) human beings are largely Meanwhile, the old guard is trying will be redundant and will be now expect every organization to Digital Payments by BCG and technology that combines a number due to innovation. One of the to solve a puzzle presented by the replaced by other more evolved deliver products and services Google. The National Optical Fiber of mathematical, cryptographic and principal arguments for free-market digital revolution: How can they modes. swiftly, with a seamless user Network initiative under Digital economic principles in order to capitalism is that it is the economic benefit from the rise of digital, and experience. New digital attackers Mobile phones especially smart India will connect 250,000 gram maintain a database between system that encourages innovation how can they stay relevant? are definitely changing the rules phones have created more opportu- panchayats across rural India and multiple participants (lenders & most, because it allows innovators and disrupting traditional value nities to the common man than any increase adoption of data services. borrowers) without the need for to capture a significant part of the Banking today has chains in many industries. The other technology in the recent past. The Pradhan Mantri Jan Dhan any third party intermediary or remunerations of their work. become Easy & On-The- same could happen to financial Today mobile banking and mobile services industry as well. Fintech Yojana (PMJDY), through 282 reconciliation. In simple terms, it is Financial services industry is no Go wallets are the two fastest growing startups are already accelerating million accounts and 220 million a secure and distributed led- different. The accelerating rate of segments in the payments industry. cards (as on 29 Mar'17), has ger/database, hardened against Gone are the days when banking innovation in financial markets by technological change, combined Evolution of mobile banking on the provided the infrastructure for tampering, against which anyone was a chore, a frustrating activity leveraging technology. But it will with shifting customer preferences back of mobile phone revolution in universal access to banking. can verify the validity of transac- which in many cases needed you to also be naïve to believe that and an evolving regulatory India has helped clients make faster technological advancement in tions. A block is the 'current' part take a day-off to accomplish the The issuing infrastructure is largely landscape, have dramatic implica- and secure banking transaction on banking will only be done by of a blockchain which records some task. Technology (Internet and in place and with the launch of tions for the ways in which the move. For banks mobile Fintech firms. Over the next couple or all of the recent transactions, and Mobile phone) has virtually Unified Payment Interface (UPI) financial services are designed, banking is the most cost efficient of years you will notice that a lot of once completed goes into the enabled banks to be where the will provide a significant fillip in delivered and disbursed today. mode of offering banking services. financial innovation will be spear blockchain as permanent database. customer is; enabling her to connect the proliferation of low cost It is a win-win situation for both headed by incumbent banks - either Blockchain represents the next Technology is overturning to the bank at a time and place acquisition infrastructure by banks and clients. independently or in partnership evolutionary jump in business workflows and processes in the convenient to her. Today we are allowing smartphones to substitute with new fintech firms. You will process optimisation technology. financial services industry. Tasks closer to year 2030 than to year costlier PoS devices. UPI will be a Future is Increasingly increasingly see a trend where once handled with paper money, 2000. Imagine if we told you in year game changer in way that it is a With the advance of Smartwatch, Digital incumbents will be as good as bulky computers, and human 2000 that you would be able to bank unique interface which works 24x7 banking is already slated to fintech firms at innovation. Today a interaction are now being com- from your phone 24X7 and Digital business is an overarching across the banking system and is experience shift from your pockets lot of banks are partnering with pleted seamlessly entirely on digital accomplish most of your banking trend covering how the blurring of instant, safe, secure, cost effective to your wrists. Wearable banking fintech firms for mutual benefits. interfaces. Almost every type of transaction in less than a minute? the physical and virtual worlds is and convenient to use. UPI allows will help banks roll out contextual

Financial Foresights 8 Financial Foresights 9 Industry Insights Industry Insights

transforming business designs, Some of the traditional players in payments to different merchants industries, markets and organiza- banking have been very agile in without the hassle of typing one's Digital Banking & Technologies tions. Major business and technol- experimenting with new age card details, or net-banking ogy advancements, such as the technologies such as Artificial password. UPI is built on top of the of Tomorrow Internet of Things, 3D printing, and Intelligence and Block-chain. Banks IMPS, which we have used to machine learning combine to and non-banks are innovating and instantly transfer money between disrupt existing business models Indian ecosystem as a whole is accounts with different banks. All money transfers with UPI are Rajiv Anand and create an opportunity for gearing up for digital. entirely new ones. Digital technolo- secured with the two factor Executive Director & Head – Retail Banking gies build on each other with wave Technologies of Future authentications as mandated by RBI Axis Bank after wave of innovation. - the first factor being your phone Two very important developments and the Mobile PIN as the second. Customer expectations for banking have the potential to herald a new UPI is likely to benefit overall services (both offline and online) age of digital payments - the payments ecosystem as the are being reset by the experiences rapidly growing smartphone payments service can be provided being provided by retailers and penetration and the proliferation of nnovation is among the most financial activity - from banking to Not many would have believed us! by banks to the merchant with an online providers, elsewhere. bank accounts. India has over a powerful forces that continue payments to wealth management But mobile banking is a reality entry level smartphone and there is Thanks to companies like Google, billion mobile connections with to shape human society. The and more - is being re-imagined by today with more than 100 million no need to install POS machine at I Amazon, Apple, Uber and our very around 240 million smartphone advances in the material standard some tech savvy banking incum- transactions a month. By the year the place of business. users and is expected to grow to 520 of living enjoyed by most (though bents as well as by startups. 2030 most of today's technology own e-commerce firms; customers million by 2020 as per a report on Blockchain is another such new not all) human beings are largely Meanwhile, the old guard is trying will be redundant and will be now expect every organization to Digital Payments by BCG and technology that combines a number due to innovation. One of the to solve a puzzle presented by the replaced by other more evolved deliver products and services Google. The National Optical Fiber of mathematical, cryptographic and principal arguments for free-market digital revolution: How can they modes. swiftly, with a seamless user Network initiative under Digital economic principles in order to capitalism is that it is the economic benefit from the rise of digital, and experience. New digital attackers Mobile phones especially smart India will connect 250,000 gram maintain a database between system that encourages innovation how can they stay relevant? are definitely changing the rules phones have created more opportu- panchayats across rural India and multiple participants (lenders & most, because it allows innovators and disrupting traditional value nities to the common man than any increase adoption of data services. borrowers) without the need for to capture a significant part of the Banking today has chains in many industries. The other technology in the recent past. The Pradhan Mantri Jan Dhan any third party intermediary or remunerations of their work. become Easy & On-The- same could happen to financial Today mobile banking and mobile services industry as well. Fintech Yojana (PMJDY), through 282 reconciliation. In simple terms, it is Financial services industry is no Go wallets are the two fastest growing startups are already accelerating million accounts and 220 million a secure and distributed led- different. The accelerating rate of segments in the payments industry. cards (as on 29 Mar'17), has ger/database, hardened against Gone are the days when banking innovation in financial markets by technological change, combined Evolution of mobile banking on the provided the infrastructure for tampering, against which anyone was a chore, a frustrating activity leveraging technology. But it will with shifting customer preferences back of mobile phone revolution in universal access to banking. can verify the validity of transac- which in many cases needed you to also be naïve to believe that and an evolving regulatory India has helped clients make faster technological advancement in tions. A block is the 'current' part take a day-off to accomplish the The issuing infrastructure is largely landscape, have dramatic implica- and secure banking transaction on banking will only be done by of a blockchain which records some task. Technology (Internet and in place and with the launch of tions for the ways in which the move. For banks mobile Fintech firms. Over the next couple or all of the recent transactions, and Mobile phone) has virtually Unified Payment Interface (UPI) financial services are designed, banking is the most cost efficient of years you will notice that a lot of once completed goes into the enabled banks to be where the will provide a significant fillip in delivered and disbursed today. mode of offering banking services. financial innovation will be spear blockchain as permanent database. customer is; enabling her to connect the proliferation of low cost It is a win-win situation for both headed by incumbent banks - either Blockchain represents the next Technology is overturning to the bank at a time and place acquisition infrastructure by banks and clients. independently or in partnership evolutionary jump in business workflows and processes in the convenient to her. Today we are allowing smartphones to substitute with new fintech firms. You will process optimisation technology. financial services industry. Tasks closer to year 2030 than to year costlier PoS devices. UPI will be a Future is Increasingly increasingly see a trend where once handled with paper money, 2000. Imagine if we told you in year game changer in way that it is a With the advance of Smartwatch, Digital incumbents will be as good as bulky computers, and human 2000 that you would be able to bank unique interface which works 24x7 banking is already slated to fintech firms at innovation. Today a interaction are now being com- from your phone 24X7 and Digital business is an overarching across the banking system and is experience shift from your pockets lot of banks are partnering with pleted seamlessly entirely on digital accomplish most of your banking trend covering how the blurring of instant, safe, secure, cost effective to your wrists. Wearable banking fintech firms for mutual benefits. interfaces. Almost every type of transaction in less than a minute? the physical and virtual worlds is and convenient to use. UPI allows will help banks roll out contextual

Financial Foresights 8 Financial Foresights 9 Industry Insights Industry Insights

notifications to its clients, which important technology that com- massive change in the network financial system, in a world where mobile banking. When calling the efficiency and transparency are key means that actionable promotional bines natural language queries, effect of financial inclusion is that smartphones and plastic become call-centre, the customer may get elements. As self-directed solutions content can be delivered at just the predictive analytics, and self- millions of people who previously the only ways to pay. In a near- help with online banking. Today, emerge among competitors, the right time. The future lies in evolving cyber security systems. had zero access to digital services cashless world vulnerable groups, far too many banks create silos for ability to differentiate will be a ultimate personalized, contextual Artificial Intelligence is the future & are now on the network and are such as the poor, the elderly and each channel - including separate challenge. In addition to social engagement. However, smart has already started to be part of our connected for good. migrants, could become further reporting lines and separate sales changes, the driving force behind watches are not the ultimate everyday lives. Machine learning is marginalised, and those who are goals. This has to quickly change innovation in financial services can It is also very encouraging that we frontier of wearable technology. As an approach to achieve artificial especially cash-dependent for because in the customer's mind, all largely be attributed to technologi- have a central bank that is equally the technology extends beyond intelligence & machine is "trained" income, such as street vendors, channels merge together to form cal advances outside the financial enthusiastic about promoting Smart Watches to include Smart- using large amount of data & small traders, charities and the the aggregate customer experience. services sector that will bring new innovations and technology. The eyewear, gesture-controlled devices algorithms that give it ability to homeless, would fear to see a drop When customers are given choices opportunities to understand and Reserve Bank in its continued and other connected products in the learn how to perform the task. in their incomes. on how to do business, and those manage the risk (e.g. telematics, efforts towards building robust and larger IoT (Internet of Things); we Another emerging technological choices are relevant and the wearables, connected homes, secure payment and settlement Today banking is a complex envisage an exciting world of advancement is cloud computing- experience is consistent, they are industrial sensors, medical systems for achieving a less-cash business delivered through 'Predictive Banking' to emerge. All the practice of using a network of much more satisfied. advances, etc.). While it will be society published Vision 2018 multiple channels. The challenge is the data you generate across your remote servers hosted on the fairly easy to replicate technology, which highlights the need for to offer consistent omni-channel Finally it is customer preference daily life can be captured (with internet to store, manage, and the critical aspect will be building a making regulations more respon- experience. Each channel should which will drive business models. your due permission of course), process data, rather than a local culture of innovation and the ability sive to technological developments promote other channels and should Customers with new expectations connected and analysed - from server or a personal computer. The to leverage insights to build and innovations in the payments be seamlessly integrated. For and the need to build trusted sensors embedded in everything big benefits of the cloud are cut solutions that will determine who space. India now has the best example, when interacting with a relationships are forcing incum- from your wearables to your costs, improve flexibility & will be able to maximize the digital infrastructure for financial branch employee, the customer bents seek value propositions cooking utensils to your car. The scalability, increase efficiency, serve opportunities and emerge as a universalization and the fact that may be assisted in how to use where experience, transaction area is unbound for exploration and client faster. winner. n we have the Jan-Dhan, Aadhaar as we explore further a billion and Mobile (JAM) layer, we have possibilities can emerge. You can Conclusion an indigenous Indian stack that is expect your bank to create products The combination of higher spend- propelling us from being data poor that shall connect with you on a ing power and a freer adaption of nation to a data rich nation. Add to deeper level but in a non-intrusive technological adoption mean that this the data available through GST manner. Banks and financial banks and other financial institu- Network, under which companies institutions will be a part of an tions have an entire market of will upload nearly three billion invisible layer around your daily willing and able customers to offer invoices every month and govern- activities. For example, by linking better financial products/services ment will effectively have real-time to your fitness band, we would like at lower costs. The fact that economic data 24X7. to encourage your fitness goals by unbanked population in India rewarding you on your achieve- Digital adoption and moving away halved from 577 million to 233 ments. We can track your health from cash would not be without million speaks volume about the data (pulse rate, sleeping habits, complications. Some objections can advancement of financial inclusion daily physical exercise, calorie be easily addressed, such as a claim efforts. Technology is the biggest intake, etc.) and create customized expressed by a fifth of a sample of enabler and equalizer today. As we Rajiv Anand, Executive Director & Head – Retail Banking, Axis Bank-An executive director with Axis Bank, Rajiv Anand heads the retail insurance plans for you at lowest respondents, who said in a recent connect one-on-one in real time, it banking business for Axis Bank. He has led the digital transformation journey making Axis Bank a widely recognized leader in technological possible annual premiums by survey that they like the feel of innovation which can be testified through its pioneering launches on social payments, integrated wallets as well as a best-in-class banking app has created massive new flows of that incorporates features like augmented reality and locker booking. partnering with various health carrying cash. But other problems trade for markets that were Over a career spanning more than 25 years, Rajiv has focused on various facets of the financial services industry having held key management providers. will be harder to ignore. The most underserved or overlooked. Cell positions at leading global financial institutions. He is widely recognized for his strengths in capital markets and successfully building new intractable is the risk that parts of businesses to scale. Artificial Intelligence (AI) & phone subscription in India has society will be left out of the Rajiv joined the Bank in 2013 from its asset management arm, Axis Asset Management Co. Ltd., where he was the Managing Director & Machine Learning is another crossed one billion. So the first CEO.

Financial Foresights 10 Financial Foresights 11 Industry Insights Industry Insights

notifications to its clients, which important technology that com- massive change in the network financial system, in a world where mobile banking. When calling the efficiency and transparency are key means that actionable promotional bines natural language queries, effect of financial inclusion is that smartphones and plastic become call-centre, the customer may get elements. As self-directed solutions content can be delivered at just the predictive analytics, and self- millions of people who previously the only ways to pay. In a near- help with online banking. Today, emerge among competitors, the right time. The future lies in evolving cyber security systems. had zero access to digital services cashless world vulnerable groups, far too many banks create silos for ability to differentiate will be a ultimate personalized, contextual Artificial Intelligence is the future & are now on the network and are such as the poor, the elderly and each channel - including separate challenge. In addition to social engagement. However, smart has already started to be part of our connected for good. migrants, could become further reporting lines and separate sales changes, the driving force behind watches are not the ultimate everyday lives. Machine learning is marginalised, and those who are goals. This has to quickly change innovation in financial services can It is also very encouraging that we frontier of wearable technology. As an approach to achieve artificial especially cash-dependent for because in the customer's mind, all largely be attributed to technologi- have a central bank that is equally the technology extends beyond intelligence & machine is "trained" income, such as street vendors, channels merge together to form cal advances outside the financial enthusiastic about promoting Smart Watches to include Smart- using large amount of data & small traders, charities and the the aggregate customer experience. services sector that will bring new innovations and technology. The eyewear, gesture-controlled devices algorithms that give it ability to homeless, would fear to see a drop When customers are given choices opportunities to understand and Reserve Bank in its continued and other connected products in the learn how to perform the task. in their incomes. on how to do business, and those manage the risk (e.g. telematics, efforts towards building robust and larger IoT (Internet of Things); we Another emerging technological choices are relevant and the wearables, connected homes, secure payment and settlement Today banking is a complex envisage an exciting world of advancement is cloud computing- experience is consistent, they are industrial sensors, medical systems for achieving a less-cash business delivered through 'Predictive Banking' to emerge. All the practice of using a network of much more satisfied. advances, etc.). While it will be society published Vision 2018 multiple channels. The challenge is the data you generate across your remote servers hosted on the fairly easy to replicate technology, which highlights the need for to offer consistent omni-channel Finally it is customer preference daily life can be captured (with internet to store, manage, and the critical aspect will be building a making regulations more respon- experience. Each channel should which will drive business models. your due permission of course), process data, rather than a local culture of innovation and the ability sive to technological developments promote other channels and should Customers with new expectations connected and analysed - from server or a personal computer. The to leverage insights to build and innovations in the payments be seamlessly integrated. For and the need to build trusted sensors embedded in everything big benefits of the cloud are cut solutions that will determine who space. India now has the best example, when interacting with a relationships are forcing incum- from your wearables to your costs, improve flexibility & will be able to maximize the digital infrastructure for financial branch employee, the customer bents seek value propositions cooking utensils to your car. The scalability, increase efficiency, serve opportunities and emerge as a universalization and the fact that may be assisted in how to use where experience, transaction area is unbound for exploration and client faster. winner. n we have the Jan-Dhan, Aadhaar as we explore further a billion and Mobile (JAM) layer, we have possibilities can emerge. You can Conclusion an indigenous Indian stack that is expect your bank to create products The combination of higher spend- propelling us from being data poor that shall connect with you on a ing power and a freer adaption of nation to a data rich nation. Add to deeper level but in a non-intrusive technological adoption mean that this the data available through GST manner. Banks and financial banks and other financial institu- Network, under which companies institutions will be a part of an tions have an entire market of will upload nearly three billion invisible layer around your daily willing and able customers to offer invoices every month and govern- activities. For example, by linking better financial products/services ment will effectively have real-time to your fitness band, we would like at lower costs. The fact that economic data 24X7. to encourage your fitness goals by unbanked population in India rewarding you on your achieve- Digital adoption and moving away halved from 577 million to 233 ments. We can track your health from cash would not be without million speaks volume about the data (pulse rate, sleeping habits, complications. Some objections can advancement of financial inclusion daily physical exercise, calorie be easily addressed, such as a claim efforts. Technology is the biggest intake, etc.) and create customized expressed by a fifth of a sample of enabler and equalizer today. As we Rajiv Anand, Executive Director & Head – Retail Banking, Axis Bank-An executive director with Axis Bank, Rajiv Anand heads the retail insurance plans for you at lowest respondents, who said in a recent connect one-on-one in real time, it banking business for Axis Bank. He has led the digital transformation journey making Axis Bank a widely recognized leader in technological possible annual premiums by survey that they like the feel of innovation which can be testified through its pioneering launches on social payments, integrated wallets as well as a best-in-class banking app has created massive new flows of that incorporates features like augmented reality and locker booking. partnering with various health carrying cash. But other problems trade for markets that were Over a career spanning more than 25 years, Rajiv has focused on various facets of the financial services industry having held key management providers. will be harder to ignore. The most underserved or overlooked. Cell positions at leading global financial institutions. He is widely recognized for his strengths in capital markets and successfully building new intractable is the risk that parts of businesses to scale. Artificial Intelligence (AI) & phone subscription in India has society will be left out of the Rajiv joined the Bank in 2013 from its asset management arm, Axis Asset Management Co. Ltd., where he was the Managing Director & Machine Learning is another crossed one billion. So the first CEO.

Financial Foresights 10 Financial Foresights 11 Industry Insights Industry Insights

digital payment technologies such Customers’ Standpoint competitors with regard to design as card payments, electronic fund and ergonomics will decide the Digital Banking - An Indian transfers, payment gateways, e- Banks are now increasingly winner. In the coming days design Payments, smart cards, mobile worrying about their very bastions will be a much bigger differentiator, money wallets etc. Pivotal to being co-shared by a string of new with simplicity being the Perspective embracing such new age payment age players. And the end-customer overarching goal. Elements systems are the people, is the single largest beneficiary - allowing consumers to personalize technologies, and processes that with a bouquet of services and their digital banking experience, have together created vast, robust service providers to choose from such as contextual cross-selling, the Raghavendra Bhat M. and dependable networks and and along with hugely competitive ability to set up personalized digital General Manager seamless systems that guarantee pricing models. Banks will have to alerts and even the ability for the Karnataka Bank humongous transactional volumes increase their operational efficiency customer to design their own at breakneck speed, with and improve the customer digital banking app (font sizes, dependable security and counter- experience by meeting the accessibility of certain functions, checks built around them. customers’ expectations swiftly in etc.) will gain prominence. order to keep their position in core All these and rest are taking India markets. It is the ability to leverage customer to the threshold of the big league insight for improved information connectivity with high speed importance. Digital banking Digital Evolution and to make the country battle- access. All new functionalities need bandwidth to every nook and provides mission critical solutions The level of automation and ready to compete with the most digitalization of the account to be part of the same digital Digital Banking may be viewed as corner of the country. This has to bankers for their short term and influential industrial and financial opening and on-boarding process banking application. Instead of adoption of various existing and exposed the full potential of the long term business and powers of global businesses. With has become very crucial. The most having every piece of functionality, emerging technologies by the hitherto untapped market in India. technological requirements. Today, digital banking and mobility, the important aspect is to improve the bank can dream up crammed into banks, in concert with associated Latest technology and service aspects such as enhanced customer need is no longer to "leap-frog" but ability for consumers to open any one big-honking mobile banking changes in internal operations as offerings in the new age Digital satisfaction and value through to "deep-dive" into the future. new account using digital channels app. In the future, digital banking well as external relationships for Payments space by the Banks, such unified customer experiences, faster Going digital and mobile for a Bank and to efficiently onboard the new applications will be judged based providing superior customer as Unified Payments Infrastructure output, infinite banking volumes, is no longer an option, it's a simple customer digitally. In this area, on the fewer number of services and experiences effectively (UPI) including BHIM (Bharat financial inclusion, operational bare necessity - to collaborate and traditional banks still differ touches/clicks needed to get from and efficiently. Interface for Money) which is a efficiencies, scale of economy etc. flourish. Today's challenging digital one screen to another. Banks are Mobile App developed by National are being sought after, by strikingly from the new market payments ecosystem has become a forced set a goal to improve the Today we find ourselves in a digital Payments Corporation of India leveraging digital banking and players who offer a convenient end- burgeoning marketplace. individual customer experience. wonderland, where the milkman (NPCI), Bharat Bill Payment System mobile technologies. Becoming a to-end online process. accepts wallet payment without a (BPSS), mobile money, e-wallets, digital bank can improve efficiency Banks have already started The ability to offer basic as well as The level of enhanced security fuss, a man buys a geometry set payment aggregation etc. have and provide a better customer value-added content and available to protect identity and worth about Rs 100 for his daughter evaluating the reduction in number created a revolution by themselves. experience. functionalities through digital funds access is equally imperative. using a credit card and the and size of branches (both the channels is another important Identity protection and account vegetable vendor uses QR code Currently there are several number of units and the size of Digital Banking – a boon aspect. Value-added content and security will continue to be the based “Scan & Pay” utility. technologies, infrastructure and existing facilities). In addition, the or bane functionalities, in contrast, will focus area as hacking incidents processes available to enable banks investment in digital technology to The new innovative digital contribute strongly towards a become more sophisticated and to become super-efficient and replace more expensive human Going by the deep penetration widespread. Banks have to technologies and futuristic thought dependable banks. Adaptation and positive customer experience. within a relatively lesser interactions is also being implement biometric security, processes have given birth to whole implementation of highly capital Value-added functionalities include turnaround time, state-of-the-art considered. This includes, but not including fingerprint technology, new businesses and social intensive global technologies, digital document safekeeping, digital payment systems are now limited to, tablets for universal facial recognition or voice dimensions. Projects such as Make infrastructure and processes are access to financial news, digital poised to take quantum leaps in bankers, automated teller machines recognition etc as part of person in India and Digital India are now decisive in order to remain ahead of investing, personalized digital this new era that is largely driven identification. the buzzwords to a bright and the curve. Transition and Inter- and digital kiosks to facilitate alerts, digital savings tools, online by the ubiquitous Internet. These sustainable industrial and financial operability related issues viz. from account opening and customer chat, social media banking, e- disruptive dynamics and revenue progress of our nation. As part of traditional banking to state of the inquiries. To be successful in a lobbies etc., among others. Challenges of models are literally the new game its impetus for DIGITAL art digital banking such as data digital environment, banks focus on Digitalisation changers - causing tangible and Simplicity of design, availability of TRANSFORMATION in India, integrity, authentication (including improving their digital maturity tactical shifts across major verticals. contextual offers and ability to Government also encourages third party authentication) and Secure banking based on E-commerce and M-commerce across various dimensions of personalize the experience are technology adoption / up- trust factors in a digital banking technology and its ramifications success is largely attributed to the customer service. definitely some of the key success gradation while providing environment are gaining including cyber-crimes in today’s phenomenal growth of various factors. The differentiation between

Financial Foresights 12 Financial Foresights 13 Industry Insights Industry Insights

digital payment technologies such Customers’ Standpoint competitors with regard to design as card payments, electronic fund and ergonomics will decide the Digital Banking - An Indian transfers, payment gateways, e- Banks are now increasingly winner. In the coming days design Payments, smart cards, mobile worrying about their very bastions will be a much bigger differentiator, money wallets etc. Pivotal to being co-shared by a string of new with simplicity being the Perspective embracing such new age payment age players. And the end-customer overarching goal. Elements systems are the people, is the single largest beneficiary - allowing consumers to personalize technologies, and processes that with a bouquet of services and their digital banking experience, have together created vast, robust service providers to choose from such as contextual cross-selling, the Raghavendra Bhat M. and dependable networks and and along with hugely competitive ability to set up personalized digital General Manager seamless systems that guarantee pricing models. Banks will have to alerts and even the ability for the Karnataka Bank humongous transactional volumes increase their operational efficiency customer to design their own at breakneck speed, with and improve the customer digital banking app (font sizes, dependable security and counter- experience by meeting the accessibility of certain functions, checks built around them. customers’ expectations swiftly in etc.) will gain prominence. order to keep their position in core All these and rest are taking India markets. It is the ability to leverage customer to the threshold of the big league insight for improved information connectivity with high speed importance. Digital banking Digital Evolution and to make the country battle- access. All new functionalities need bandwidth to every nook and provides mission critical solutions The level of automation and ready to compete with the most digitalization of the account to be part of the same digital Digital Banking may be viewed as corner of the country. This has to bankers for their short term and influential industrial and financial opening and on-boarding process banking application. Instead of adoption of various existing and exposed the full potential of the long term business and powers of global businesses. With has become very crucial. The most having every piece of functionality, emerging technologies by the hitherto untapped market in India. technological requirements. Today, digital banking and mobility, the important aspect is to improve the bank can dream up crammed into banks, in concert with associated Latest technology and service aspects such as enhanced customer need is no longer to "leap-frog" but ability for consumers to open any one big-honking mobile banking changes in internal operations as offerings in the new age Digital satisfaction and value through to "deep-dive" into the future. new account using digital channels app. In the future, digital banking well as external relationships for Payments space by the Banks, such unified customer experiences, faster Going digital and mobile for a Bank and to efficiently onboard the new applications will be judged based providing superior customer as Unified Payments Infrastructure output, infinite banking volumes, is no longer an option, it's a simple customer digitally. In this area, on the fewer number of services and experiences effectively (UPI) including BHIM (Bharat financial inclusion, operational bare necessity - to collaborate and traditional banks still differ touches/clicks needed to get from and efficiently. Interface for Money) which is a efficiencies, scale of economy etc. flourish. Today's challenging digital one screen to another. Banks are Mobile App developed by National are being sought after, by strikingly from the new market payments ecosystem has become a forced set a goal to improve the Today we find ourselves in a digital Payments Corporation of India leveraging digital banking and players who offer a convenient end- burgeoning marketplace. individual customer experience. wonderland, where the milkman (NPCI), Bharat Bill Payment System mobile technologies. Becoming a to-end online process. accepts wallet payment without a (BPSS), mobile money, e-wallets, digital bank can improve efficiency Banks have already started The ability to offer basic as well as The level of enhanced security fuss, a man buys a geometry set payment aggregation etc. have and provide a better customer value-added content and available to protect identity and worth about Rs 100 for his daughter evaluating the reduction in number created a revolution by themselves. experience. functionalities through digital funds access is equally imperative. using a credit card and the and size of branches (both the channels is another important Identity protection and account vegetable vendor uses QR code Currently there are several number of units and the size of Digital Banking – a boon aspect. Value-added content and security will continue to be the based “Scan & Pay” utility. technologies, infrastructure and existing facilities). In addition, the or bane functionalities, in contrast, will focus area as hacking incidents processes available to enable banks investment in digital technology to The new innovative digital contribute strongly towards a become more sophisticated and to become super-efficient and replace more expensive human Going by the deep penetration widespread. Banks have to technologies and futuristic thought dependable banks. Adaptation and positive customer experience. within a relatively lesser interactions is also being implement biometric security, processes have given birth to whole implementation of highly capital Value-added functionalities include turnaround time, state-of-the-art considered. This includes, but not including fingerprint technology, new businesses and social intensive global technologies, digital document safekeeping, digital payment systems are now limited to, tablets for universal facial recognition or voice dimensions. Projects such as Make infrastructure and processes are access to financial news, digital poised to take quantum leaps in bankers, automated teller machines recognition etc as part of person in India and Digital India are now decisive in order to remain ahead of investing, personalized digital this new era that is largely driven identification. the buzzwords to a bright and the curve. Transition and Inter- and digital kiosks to facilitate alerts, digital savings tools, online by the ubiquitous Internet. These sustainable industrial and financial operability related issues viz. from account opening and customer chat, social media banking, e- disruptive dynamics and revenue progress of our nation. As part of traditional banking to state of the inquiries. To be successful in a lobbies etc., among others. Challenges of models are literally the new game its impetus for DIGITAL art digital banking such as data digital environment, banks focus on Digitalisation changers - causing tangible and Simplicity of design, availability of TRANSFORMATION in India, integrity, authentication (including improving their digital maturity tactical shifts across major verticals. contextual offers and ability to Government also encourages third party authentication) and Secure banking based on E-commerce and M-commerce across various dimensions of personalize the experience are technology adoption / up- trust factors in a digital banking technology and its ramifications success is largely attributed to the customer service. definitely some of the key success gradation while providing environment are gaining including cyber-crimes in today’s phenomenal growth of various factors. The differentiation between

Financial Foresights 12 Financial Foresights 13 Industry Insights Industry Insights

digital banking landscape has to be expect no less from traditional Status post- reviewed continuously. The dark banks. Also the need to reduce costs demonetisation side of being digital i.e. cyber and increase efficiency is assuming Making Banking More Human security risks are to be taken care more significance than ever. In this Recent demonetisation exercise of and risk mitigation measures need regard, improving a bank’s digital higher denomination notes by the to be strengthened. Advanced fraud maturity ensures higher efficiency government has really accelerated the transformation of digital detection mechanisms and the in its processes such as credit banking in India. Growth in the possibility to leverage personalized offering, improved interaction and number of digital transactions has security preferences and alerts will customer experience. K P Sunny been exponential since November have to become more widespread. General Manager, Renewed skills development of 2016. Backed by Government For any security enhancement to be workforce and investments into thrust, people of India finally seem Digital Banking, Strategic Initiative & Optimization accepted and efficient will require to have accepted/embraced digital training and manpower Federal Bank that the user experience is not economy. Demand for cash is development is the need of the impacted. Banks should consider diminishing slowly. New payment hour. Customer segmentation is investigating and implementing initiatives such as Aadhaar-linked another aspect which will not only additional layers of security that cashless payment solution which facilitate ease of interaction, but come from science fiction a few centers. will reduce the potential for device enables a merchant to facilitate Who wants Digital also enable targeted product Aadhaar based payment for years ago but not anymore. These and account level fraud. While Banking? But at the same time, when it comes are real life headlines from placement, thus increasing the cashless purchases by customers to what we mean by ‘Digital ready to manage breaches, the goal I am fond of reading and normally prominent media. All around there likelihood of further acceptance. called ‘Aadhaar Pay’ and ‘Bharat Banking’, there seems to be a little should be to reduce the potential carry a book when I travel. For that is a transformation happening QR’, an integrated payment system bit of misperception. Many for losses and customer impact. All the while, it is important to be matter all at home are avid readers. whether we are prepared for it or using the customers’ mobile phone industry insiders and their clients conversant with the regulatory, to pay through debit or credit card The difference is that, youngsters not. Use of advanced data analytics will use the word digital banking in a travel with hundreds of books in security, technology and business by scanning a code at the Of course, banking cannot stay much narrower sense. Many limit it help in combating several issues their kindle. With devices of the challenges that await both - merchant’s place etc., have come to behind. Customers who have to cash-less or paper-less mentioned above. Adoption of size of mobile phone, they carry traditional banks as well as the stay. However with all these travelled in an Uber cab or did an transactions. This is not so. World technology and convincing the thousands of songs and many latest entrants such as payment revolutionary new technologies, Amazon purchase expect similar over, ‘Digital Banking’ per se has a customers to opt for self-service hours of video. banks. Taking digital banking to the improvement in operational experience at their bank counters. wider meaning, though digital modes of banking is the biggest efficiencies in order to ultimately unbanked is another task, a social Things have changed. Virtual We cannot blame them. If we are to transactions form a subset of it. challenge. In addition, consumers increase bottom lines and Private Assistants like ‘OK Google’, borrow from Mr. Nandan Nilekani, obligation. Achieving financial What exactly is Digital Banking? are becoming impatient with banks shareholder value will remain a ‘Siri’ and ‘Alexa’ are literally there’s demand for ‘a WhatsApp inclusion targets by innovative use Christel Quek, who was with who offer irrelevant challenge for all banks. Role of waiting to execute your commands. moment in banking’. Digital of digital banking thereby Twitter answered the question like products/solutions without proper analytics and innovative revenue One does not venture to drive out banking has become the latest buzz promoting rural banking in a more models need to be further fine- this, “It’s really about behavior and study of customer understanding. without GPS these days and word. comprehensive manner cannot be tuned. To reap maximum not technology or channels, that While new generation banks are driverless cars are round the bend. forgotten. advantage in an increasingly digital What is Digital Banking? influences strategy, content, and performing better and better with Whether it is sports or shopping, society, it is imperative that banks drives advocacy. It’s not about booking a ticket or buying a pizza With demonetization and the contextual offers that are based on must demonstrate superior being mobile first or digital first, digital transformation has taken subsequent thrust from the collected insights, consumers performance in all spheres of but being people first.” Technology over. government for cash less customer service. n is only a means and not the end. “South Korea plans to put transactions, the share of digital Customer experience is the key. driverless cars on the road by 2020, and online transactions have been This is obvious from the trend seen IOT insurance market will be worth steadily gaining momentum. The in other industries. All the 42.76 billion USD by 2022, Chinese relaxations given in MDM and the innovations are moving towards factory replaces 90% of humans new tax regulations; all help in providing better and superior with robots production soars, bringing in more customers for customer experience. Amazon conducts first commercial digital. Raghavendra Bhat M. B Com, CAIIB, General Manager, Karnataka Bank, Head Office, Mangalore-Raghavendra Bhat M. joined Karnataka drone delivery and Precision Share of digital transactions will get Bank–Startup partnership Bank in the year 1981. In his illustrious career of 36 years with Karnataka Bank, he has worked as head of several branches and also headed agriculture could start a green further boost, when the internet Which are the technologies that Delhi and Bangalore regions. He has vast administrative exposure as an executive, having worked in the Credit Department, as head of revolution in India. ” These become faster, cheaper and reliable, Information Technology Department at Head Office and also as head of Data Centre of the Bank. Currently he is the General Manager in lend a hand to Indian banking to statements would seem to have especially in rural and semi-urban charge of IT & MIS Departments, Risk Based Supervision Cell, Risk Management Department, IT Bus Cell, Head Office. bring the Uber or Amazon

Financial Foresights 14 Financial Foresights 15 Industry Insights Industry Insights

digital banking landscape has to be expect no less from traditional Status post- reviewed continuously. The dark banks. Also the need to reduce costs demonetisation side of being digital i.e. cyber and increase efficiency is assuming Making Banking More Human security risks are to be taken care more significance than ever. In this Recent demonetisation exercise of and risk mitigation measures need regard, improving a bank’s digital higher denomination notes by the to be strengthened. Advanced fraud maturity ensures higher efficiency government has really accelerated the transformation of digital detection mechanisms and the in its processes such as credit banking in India. Growth in the possibility to leverage personalized offering, improved interaction and number of digital transactions has security preferences and alerts will customer experience. K P Sunny been exponential since November have to become more widespread. General Manager, Renewed skills development of 2016. Backed by Government For any security enhancement to be workforce and investments into thrust, people of India finally seem Digital Banking, Strategic Initiative & Optimization accepted and efficient will require to have accepted/embraced digital training and manpower Federal Bank that the user experience is not economy. Demand for cash is development is the need of the impacted. Banks should consider diminishing slowly. New payment hour. Customer segmentation is investigating and implementing initiatives such as Aadhaar-linked another aspect which will not only additional layers of security that cashless payment solution which facilitate ease of interaction, but come from science fiction a few centers. will reduce the potential for device enables a merchant to facilitate Who wants Digital also enable targeted product Aadhaar based payment for years ago but not anymore. These and account level fraud. While Banking? But at the same time, when it comes are real life headlines from placement, thus increasing the cashless purchases by customers to what we mean by ‘Digital ready to manage breaches, the goal I am fond of reading and normally prominent media. All around there likelihood of further acceptance. called ‘Aadhaar Pay’ and ‘Bharat Banking’, there seems to be a little should be to reduce the potential carry a book when I travel. For that is a transformation happening QR’, an integrated payment system bit of misperception. Many for losses and customer impact. All the while, it is important to be matter all at home are avid readers. whether we are prepared for it or using the customers’ mobile phone industry insiders and their clients conversant with the regulatory, to pay through debit or credit card The difference is that, youngsters not. Use of advanced data analytics will use the word digital banking in a travel with hundreds of books in security, technology and business by scanning a code at the Of course, banking cannot stay much narrower sense. Many limit it help in combating several issues their kindle. With devices of the challenges that await both - merchant’s place etc., have come to behind. Customers who have to cash-less or paper-less mentioned above. Adoption of size of mobile phone, they carry traditional banks as well as the stay. However with all these travelled in an Uber cab or did an transactions. This is not so. World technology and convincing the thousands of songs and many latest entrants such as payment revolutionary new technologies, Amazon purchase expect similar over, ‘Digital Banking’ per se has a customers to opt for self-service hours of video. banks. Taking digital banking to the improvement in operational experience at their bank counters. wider meaning, though digital modes of banking is the biggest efficiencies in order to ultimately unbanked is another task, a social Things have changed. Virtual We cannot blame them. If we are to transactions form a subset of it. challenge. In addition, consumers increase bottom lines and Private Assistants like ‘OK Google’, borrow from Mr. Nandan Nilekani, obligation. Achieving financial What exactly is Digital Banking? are becoming impatient with banks shareholder value will remain a ‘Siri’ and ‘Alexa’ are literally there’s demand for ‘a WhatsApp inclusion targets by innovative use Christel Quek, who was with who offer irrelevant challenge for all banks. Role of waiting to execute your commands. moment in banking’. Digital of digital banking thereby Twitter answered the question like products/solutions without proper analytics and innovative revenue One does not venture to drive out banking has become the latest buzz promoting rural banking in a more models need to be further fine- this, “It’s really about behavior and study of customer understanding. without GPS these days and word. comprehensive manner cannot be tuned. To reap maximum not technology or channels, that While new generation banks are driverless cars are round the bend. forgotten. advantage in an increasingly digital What is Digital Banking? influences strategy, content, and performing better and better with Whether it is sports or shopping, society, it is imperative that banks drives advocacy. It’s not about booking a ticket or buying a pizza With demonetization and the contextual offers that are based on must demonstrate superior being mobile first or digital first, digital transformation has taken subsequent thrust from the collected insights, consumers performance in all spheres of but being people first.” Technology over. government for cash less customer service. n is only a means and not the end. “South Korea plans to put transactions, the share of digital Customer experience is the key. driverless cars on the road by 2020, and online transactions have been This is obvious from the trend seen IOT insurance market will be worth steadily gaining momentum. The in other industries. All the 42.76 billion USD by 2022, Chinese relaxations given in MDM and the innovations are moving towards factory replaces 90% of humans new tax regulations; all help in providing better and superior with robots production soars, bringing in more customers for customer experience. Amazon conducts first commercial digital. Raghavendra Bhat M. B Com, CAIIB, General Manager, Karnataka Bank, Head Office, Mangalore-Raghavendra Bhat M. joined Karnataka drone delivery and Precision Share of digital transactions will get Bank–Startup partnership Bank in the year 1981. In his illustrious career of 36 years with Karnataka Bank, he has worked as head of several branches and also headed agriculture could start a green further boost, when the internet Which are the technologies that Delhi and Bangalore regions. He has vast administrative exposure as an executive, having worked in the Credit Department, as head of revolution in India. ” These become faster, cheaper and reliable, Information Technology Department at Head Office and also as head of Data Centre of the Bank. Currently he is the General Manager in lend a hand to Indian banking to statements would seem to have especially in rural and semi-urban charge of IT & MIS Departments, Risk Based Supervision Cell, Risk Management Department, IT Bus Cell, Head Office. bring the Uber or Amazon

Financial Foresights 14 Financial Foresights 15 Industry Insights Industry Insights

experience to their customers? One the end consumer seems to be them to decide is short. Innovation earnest efforts to help them to Robotics will help banks to cut cost Making Banking more can pick and choose from a long welcoming it with open hands. is gaining momentum with the adopt digital banking. There is no of operation. Yet another Human list. But big data analytics can Fintech disruption is an accepted help of catalysts like India Stack. In doubt that they will acquire the technology being employed for occupy the prime position. truth today as evidenced by the fact the meanwhile tech-savvy skill, the way they pushed India to customer service is chat bots and All these point to some exciting that many banks are coming customers are enjoying the the second or third slot for global virtual agents. A virtual agent can times for banking in India and Already fintech companies are forward for engaging with startups. convenience which they never have mobile usage. It is that they need give L1 support at a much lower elsewhere. As Yann Ranchere, offering online instant checkout With a variety of startups trying out enjoyed before. some time and guidance. The cost. Supported by Natural Director at Anthemis and Finance loans based on minimal or nil all permutations and combinations technology adoption rate in the Language Processing and Artificial 2.0 blogger, put it, “It’s making documentation. Analytics help with India Stack, we can be rest Cyber Security – a matter rural & semi-urban demography Intelligence capabilities, which are banking more human.” And that them to do credit scoring centered assured that India is about to usher seems to be a tad faster than in the now available on cloud platforms, definitely is going to make the on non-traditional sources of data of concern a new era of digital banking and urban market. Though we have most of the time the customer may ordinary banking customer a lot which were hitherto not available However all is not rosy as far as better customer experience. moved to advanced marketing not even notice that he is chatting happier and satisfied. or not being considered. digital banking is concerned. While techniques, “word of mouth with a chat bot. Machine learning government is trying to ensure With digital banking on the rise, it What is all the more interesting is to API Economy advertising” still proves to be and analytics comes handy to the financial inclusion and the banks is paving way to a whole new level note that banks are coming out of effective in the Indian market. banks in the area of fraud The digital branches like SBI In are enticing customers to go digital of “Personal Relationship Banking”. their shell to partner with fintech Importantly, in the age of monitoring and cross selling. Touch are only a beginning. If we to cut cost, the less tech savvy Till date, digital transformation was startups to offer innovative deteriorating customer loyalty, the Chatbots in banking could help us go by the trends, what Bill Gates customers may find it difficult to blamed for keeping customers solutions. HDFC Bank partnered rural & semi-urban customers seem assign a banker to every customer. said in 1994 is coming of age. switch over in a fast mode. There is away from our bank counters and with a startup to bring forth Chillr, to be more loyal, once they are All of a sudden, customers have ‘Banking is necessary, banks are also the risk of fraud, as the thus missing the personal connect. a payment app using IMPS. Federal convinced about the product. started feeling more connected with not; how banks can survive in the reluctant customers may not be With the advent of social media Bank is offering a mobile based banks & they will eventually start digital age’. The demand for APIs aware of the precautions they With the Central Government keen banking, banks/ fintech companies account opening using Aadhaar as to feel like a king. Customers will from fintech startups is on the rise should take to ensure secure on propagating digital banking, for are ensuring their presence KYC document. Yes Bank and feel more in control of their and banks have begun to realize the transactions. They can easily fall the declared goal of bringing down alongside customers always, which Flipkart came up with Phonepe a financial relationships. potential of an API economy. A corruption, the share of digital allows us to learn & understand payment app based on UPI. More prey to all types of cyber frauds like number of startups are already transaction will only go up. This customers better. Be rest assured are on the anvil. vishing, phishing etc. Technology in search of working on the online lending will make the role of banks easier in that your bank will be there to offer Another threat is that the new products. Not only fresh graduates ensuring a better customer Business Case you a loan when you are in dire Role of India Stack startups with less domain expertise out of college, but even veterans experience through digital banking. Internet of Things, Augmented need of it. For the first time the local with decades of industry expertise may not fully appreciate the Reality, Virtual Reality, Real-time Passing of government subsidies innovation is not following the are taking the startup route to implications of security of online Digital Operations Translations and Voice-to-Text directly into accounts of citizens footsteps of the Silicon Valley. The innovate in the fintech arena. transactions and extent of fraud While these changes are happening capabilities are some of the journey India started in 2010 to that can happen. The recent UPI and automating a lot of manual The ultimate model can be one at the customer facing part of the technologies standing in queue and provide a unique identity to its fraud is an example in case. Indian works are helping us to be a more where banks may play a backend banks, similar transformations are waiting for appropriate business billion citizens has in a way helped Computer Emergency Response transparent society. Transacting role providing a sturdy and robust happening inside counters also. cases. A few banks have started to author a revolution in the fintech Team (ICERT) has already alerted digitally will only instill more platform of banking while startups Indian banks have started relying experimenting with block-chain but domain. It paved the way for India banks and associated entities about confidence amongst public and it can be handling the user experience on robotics to get things done at again, many are not sure about the Stack, a set of APIs which the enhanced threat as India brings back the mantle to the at the front end for an opex fee. At their operations departments. use cases. empowers even startups to develop embraces digital banking on a customer, making the case more least on the retail banking front, n fintech applications with ease and higher scale. customer- centric. banking-as-a-platform may not par take in India’s digital raise many eyebrows. The question Digital Banking throws up many transformation. India stack now that is yet to be settled is about opportunities. With the new include Aadhaar for eKYC, eSign branding and marketing – will the directive of RBI of using OTP for for paperless execution of final product be cobranded or not? eKYC with Aadhaar, one can open agreements, UPI for seamless an account literally sitting at home K P Sunny, General Manager Digital Banking, Strategic Initiative & Optimization, Federal Bank online payments and eLocker for Dilemma of Traditional or abroad. At the same time cyber K P Sunny has 35+ years of experience in commercial banking in the areas of branch banking, treasury operations, corporate planning, electronically storing and sharing security should be of prime banking operations and banking technology. documents. Banks concern. He has a commerce background and is a certified associate of Indian Institute of Bankers. He is qualified in Business Finance, Application India Stack is going to be a game So, traditional (in mindset) banks Programming, Web Applications and Machine Learning. changer as far as India is concerned. are in a fix now. They are not sure Digital Inclusion He was a member of the RBI Committee responsible for UAT of the Negotiated Dealing System (NDS) and has also helped in the formulation whether to stick to the old menu or of its Business Rules. He was also part of the NPCI steering committee for Unified Payment Interface and was the member of the management Banking, known for its age-old For the rural India, this is a cultural go out and paint the town red. But committee of Indian Banks' CIO Forum. He was the CIO of the Bank before he was appointed as the General Manager in charge of Digital methods, is ripe for a change and change, if not shock. There has to be Banking and Strategic Initiatives. He also heads Bank's Launchpad initiative for mentoring startups. they know that the time left for He is much interested in innovation, lateral thinking and machine learning. He is an avid reader and enjoys books from authors like Malcom Gladwell and Edward De Bono

Financial Foresights 16 Financial Foresights 17 Industry Insights Industry Insights

experience to their customers? One the end consumer seems to be them to decide is short. Innovation earnest efforts to help them to Robotics will help banks to cut cost Making Banking more can pick and choose from a long welcoming it with open hands. is gaining momentum with the adopt digital banking. There is no of operation. Yet another Human list. But big data analytics can Fintech disruption is an accepted help of catalysts like India Stack. In doubt that they will acquire the technology being employed for occupy the prime position. truth today as evidenced by the fact the meanwhile tech-savvy skill, the way they pushed India to customer service is chat bots and All these point to some exciting that many banks are coming customers are enjoying the the second or third slot for global virtual agents. A virtual agent can times for banking in India and Already fintech companies are forward for engaging with startups. convenience which they never have mobile usage. It is that they need give L1 support at a much lower elsewhere. As Yann Ranchere, offering online instant checkout With a variety of startups trying out enjoyed before. some time and guidance. The cost. Supported by Natural Director at Anthemis and Finance loans based on minimal or nil all permutations and combinations technology adoption rate in the Language Processing and Artificial 2.0 blogger, put it, “It’s making documentation. Analytics help with India Stack, we can be rest Cyber Security – a matter rural & semi-urban demography Intelligence capabilities, which are banking more human.” And that them to do credit scoring centered assured that India is about to usher seems to be a tad faster than in the now available on cloud platforms, definitely is going to make the on non-traditional sources of data of concern a new era of digital banking and urban market. Though we have most of the time the customer may ordinary banking customer a lot which were hitherto not available However all is not rosy as far as better customer experience. moved to advanced marketing not even notice that he is chatting happier and satisfied. or not being considered. digital banking is concerned. While techniques, “word of mouth with a chat bot. Machine learning government is trying to ensure With digital banking on the rise, it What is all the more interesting is to API Economy advertising” still proves to be and analytics comes handy to the financial inclusion and the banks is paving way to a whole new level note that banks are coming out of effective in the Indian market. banks in the area of fraud The digital branches like SBI In are enticing customers to go digital of “Personal Relationship Banking”. their shell to partner with fintech Importantly, in the age of monitoring and cross selling. Touch are only a beginning. If we to cut cost, the less tech savvy Till date, digital transformation was startups to offer innovative deteriorating customer loyalty, the Chatbots in banking could help us go by the trends, what Bill Gates customers may find it difficult to blamed for keeping customers solutions. HDFC Bank partnered rural & semi-urban customers seem assign a banker to every customer. said in 1994 is coming of age. switch over in a fast mode. There is away from our bank counters and with a startup to bring forth Chillr, to be more loyal, once they are All of a sudden, customers have ‘Banking is necessary, banks are also the risk of fraud, as the thus missing the personal connect. a payment app using IMPS. Federal convinced about the product. started feeling more connected with not; how banks can survive in the reluctant customers may not be With the advent of social media Bank is offering a mobile based banks & they will eventually start digital age’. The demand for APIs aware of the precautions they With the Central Government keen banking, banks/ fintech companies account opening using Aadhaar as to feel like a king. Customers will from fintech startups is on the rise should take to ensure secure on propagating digital banking, for are ensuring their presence KYC document. Yes Bank and feel more in control of their and banks have begun to realize the transactions. They can easily fall the declared goal of bringing down alongside customers always, which Flipkart came up with Phonepe a financial relationships. potential of an API economy. A corruption, the share of digital allows us to learn & understand payment app based on UPI. More prey to all types of cyber frauds like number of startups are already transaction will only go up. This customers better. Be rest assured are on the anvil. vishing, phishing etc. Technology in search of working on the online lending will make the role of banks easier in that your bank will be there to offer Another threat is that the new products. Not only fresh graduates ensuring a better customer Business Case you a loan when you are in dire Role of India Stack startups with less domain expertise out of college, but even veterans experience through digital banking. Internet of Things, Augmented need of it. For the first time the local with decades of industry expertise may not fully appreciate the Reality, Virtual Reality, Real-time Passing of government subsidies innovation is not following the are taking the startup route to implications of security of online Digital Operations Translations and Voice-to-Text directly into accounts of citizens footsteps of the Silicon Valley. The innovate in the fintech arena. transactions and extent of fraud While these changes are happening capabilities are some of the journey India started in 2010 to that can happen. The recent UPI and automating a lot of manual The ultimate model can be one at the customer facing part of the technologies standing in queue and provide a unique identity to its fraud is an example in case. Indian works are helping us to be a more where banks may play a backend banks, similar transformations are waiting for appropriate business billion citizens has in a way helped Computer Emergency Response transparent society. Transacting role providing a sturdy and robust happening inside counters also. cases. A few banks have started to author a revolution in the fintech Team (ICERT) has already alerted digitally will only instill more platform of banking while startups Indian banks have started relying experimenting with block-chain but domain. It paved the way for India banks and associated entities about confidence amongst public and it can be handling the user experience on robotics to get things done at again, many are not sure about the Stack, a set of APIs which the enhanced threat as India brings back the mantle to the at the front end for an opex fee. At their operations departments. use cases. empowers even startups to develop embraces digital banking on a customer, making the case more least on the retail banking front, n fintech applications with ease and higher scale. customer- centric. banking-as-a-platform may not par take in India’s digital raise many eyebrows. The question Digital Banking throws up many transformation. India stack now that is yet to be settled is about opportunities. With the new include Aadhaar for eKYC, eSign branding and marketing – will the directive of RBI of using OTP for for paperless execution of final product be cobranded or not? eKYC with Aadhaar, one can open agreements, UPI for seamless an account literally sitting at home K P Sunny, General Manager Digital Banking, Strategic Initiative & Optimization, Federal Bank online payments and eLocker for Dilemma of Traditional or abroad. At the same time cyber K P Sunny has 35+ years of experience in commercial banking in the areas of branch banking, treasury operations, corporate planning, electronically storing and sharing security should be of prime banking operations and banking technology. documents. Banks concern. He has a commerce background and is a certified associate of Indian Institute of Bankers. He is qualified in Business Finance, Application India Stack is going to be a game So, traditional (in mindset) banks Programming, Web Applications and Machine Learning. changer as far as India is concerned. are in a fix now. They are not sure Digital Inclusion He was a member of the RBI Committee responsible for UAT of the Negotiated Dealing System (NDS) and has also helped in the formulation whether to stick to the old menu or of its Business Rules. He was also part of the NPCI steering committee for Unified Payment Interface and was the member of the management Banking, known for its age-old For the rural India, this is a cultural go out and paint the town red. But committee of Indian Banks' CIO Forum. He was the CIO of the Bank before he was appointed as the General Manager in charge of Digital methods, is ripe for a change and change, if not shock. There has to be Banking and Strategic Initiatives. He also heads Bank's Launchpad initiative for mentoring startups. they know that the time left for He is much interested in innovation, lateral thinking and machine learning. He is an avid reader and enjoys books from authors like Malcom Gladwell and Edward De Bono

Financial Foresights 16 Financial Foresights 17 Industry Insights Industry Insights

enhanced customer satisfaction and value through unified customer experiences, fastest Creating Digital Banking in India possible throughput, infinite value at the banking volumes, financial new frontiers of inclusion, operational the business efficiencies, scale of economy etc. world are being sought after by Prasanna Lohar leveraging digital banking and mobile technologies. Creating value in the Head Technology – Innovation & Architecture processes that execute DCB Bank Limited 3. Arrival Of Players: Traditional a vision of customer experiences. banks should be worried about Buildingcapabilities foundational that their very bastions being co- supportstructure. the entire shared by a string of new age players e.g. Payments Bank, Fintech culture around. And the e understand rise like never before. The new Aadhaar enabled use cases , wallet end-customer is the single To be meaningful and sustainable; improve how customers are served. significance of Digital innovative leadership and futuristic disruptions & RBI initiatives along largest beneficiary - with a digital should be seen less as a This is grounded in an obsession W& how clearly it's thought processes have given birth with NPCI e.g. UPI, BBPS, AEPS, bouquet of services and service thing and more a way of doing with understanding each step of a disruptive & game changing for to whole new business and social India QR are now the keywords to providers to choose from and things. customer's purchasing journey- regardless of channel-and thinking banks & its customers. under dimensions. Ambitious projects a bright and sustainable financial along with hugely competitive Creating value at new frontiers Digital India programme we are such as Digital India, execution of progress of our nation. pricing models. about how digital capabilities can experiencing a New India on the payments bank, Make in India, Being digital requires being open to design and deliver the best possible Digital re-examining your entire way of experience, across all parts of the doing business and understanding business Making this happen Everyone wants to go digital. The where the new frontiers of value requires an interconnected set of first step truly understands what are. e.g. Onboarding through e- four core capabilities: Universal Electronic Public IT for Jobs eKranti e- that means? Early Access to Manufacturing KYC system instead of manual Broad Band Internet Information Electronic Electronic Governance Harvest Phones & Target 1. Proactive decision making Highway Access for everyone Automation Delivery of thru n programmes Mobile Net Zero For some, it's about technology. process, exposing of services in programme of Jobs Services Technology Connectivity Import form of APIS to partners, providing Relevance is the currency of the n For others, it's is a new way of banking services on various digital age. This requires making engaging with customers. channels Viz. mobile or online decisions, based on intelligence, n that delivers content and The Reserve Bank of India's to electronic payments and ensure payments, electronic fund And for others still, it represents apart from traditional channels. an entirely new way of doing experiences that are personalized "Payment and Settlement Systems that the payment systems in India transfers, payment gateways, At the same time, being digital business. and relevant to the customer. It in India: Vision-2018" aims at are safe, secure, authorised, e-payments, smart cards, mobile means being closely attuned to how extends to personalizing & building best of class payment and efficient and accessible. money wallets etc. Pivotal to None of these definitions is customer decision journeys are optimizing the next step in the settlement systems for a 'less-cash' embracing such new age necessarily incorrect. But such evolving in the broadest sense. That Digital banking provides mission customer's journey. E.g. India. The broad contours of payment systems are the people, diverse perspectives reflect a lack of means understanding how critical solutions to bankers for omnichannel banking, blend Vision-2018 revolve around 5 Cs - technologies, and processes that alignment and common vision customer behaviours and their short term and long term data from multiple channels into coverage, convenience, confidence, have together created vast, about where the business needs to expectations are developing inside business and technological one view of what customers are convergence and cost. To achieve robust and dependable networks go. This often results to missed and outside your business, as well requirements. Following are three doing and what happens as a these, focus on four strategic and seamless systems that opportunities, sluggish as outside your sector, which is driving factors in India. result. In the back office, initiatives such as responsive guarantee herculean performance, or false starts. crucial to getting ahead of trends analytics and intelligence regulation, robust infrastructure, 1. Adoption: Post demonetisation transactional volumes at that can deliver or destroy value. provide near-real-time insights effective supervision and customer e-commerce & m-commerce breakneck speed, and with Business leaders must have a clear into customer needs and centricity is important. success is largely attributed to dependable security and and common understanding of Creating value in core behaviours that then determine the phenomenal growth of counter-checks built around exactly what digital means to them businesses RBI has periodically put forth its the types of messages and offers various digital payment them. and, as a result, what it means to vision for payment & settlement Digital's next element is rethinking technologies such as card their business. to deliver to the customer. systems so that the banks migrate 2. Agility: Today, aspects such as how to use new capabilities to

Financial Foresights 18 Financial Foresights 19 Industry Insights Industry Insights

enhanced customer satisfaction and value through unified customer experiences, fastest Creating Digital Banking in India possible throughput, infinite value at the banking volumes, financial new frontiers of inclusion, operational the business efficiencies, scale of economy etc. world are being sought after by Prasanna Lohar leveraging digital banking and mobile technologies. Creating value in the Head Technology – Innovation & Architecture processes that execute DCB Bank Limited 3. Arrival Of Players: Traditional a vision of customer experiences. banks should be worried about Buildingcapabilities foundational that their very bastions being co- supportstructure. the entire shared by a string of new age players e.g. Payments Bank, Fintech culture around. And the e understand rise like never before. The new Aadhaar enabled use cases , wallet end-customer is the single To be meaningful and sustainable; improve how customers are served. significance of Digital innovative leadership and futuristic disruptions & RBI initiatives along largest beneficiary - with a digital should be seen less as a This is grounded in an obsession W& how clearly it's thought processes have given birth with NPCI e.g. UPI, BBPS, AEPS, bouquet of services and service thing and more a way of doing with understanding each step of a disruptive & game changing for to whole new business and social India QR are now the keywords to providers to choose from and things. customer's purchasing journey- regardless of channel-and thinking banks & its customers. under dimensions. Ambitious projects a bright and sustainable financial along with hugely competitive Creating value at new frontiers Digital India programme we are such as Digital India, execution of progress of our nation. pricing models. about how digital capabilities can experiencing a New India on the payments bank, Make in India, Being digital requires being open to design and deliver the best possible Digital re-examining your entire way of experience, across all parts of the doing business and understanding business Making this happen Everyone wants to go digital. The where the new frontiers of value requires an interconnected set of first step truly understands what are. e.g. Onboarding through e- four core capabilities: Universal Electronic Public IT for Jobs eKranti e- that means? Early Access to Manufacturing KYC system instead of manual Broad Band Internet Information Electronic Electronic Governance Harvest Phones & Target 1. Proactive decision making Highway Access for everyone Automation Delivery of thru n programmes Mobile Net Zero For some, it's about technology. process, exposing of services in programme of Jobs Services Technology Connectivity Import form of APIS to partners, providing Relevance is the currency of the n For others, it's is a new way of banking services on various digital age. This requires making engaging with customers. channels Viz. mobile or online decisions, based on intelligence, n that delivers content and The Reserve Bank of India's to electronic payments and ensure payments, electronic fund And for others still, it represents apart from traditional channels. an entirely new way of doing experiences that are personalized "Payment and Settlement Systems that the payment systems in India transfers, payment gateways, At the same time, being digital business. and relevant to the customer. It in India: Vision-2018" aims at are safe, secure, authorised, e-payments, smart cards, mobile means being closely attuned to how extends to personalizing & building best of class payment and efficient and accessible. money wallets etc. Pivotal to None of these definitions is customer decision journeys are optimizing the next step in the settlement systems for a 'less-cash' embracing such new age necessarily incorrect. But such evolving in the broadest sense. That Digital banking provides mission customer's journey. E.g. India. The broad contours of payment systems are the people, diverse perspectives reflect a lack of means understanding how critical solutions to bankers for omnichannel banking, blend Vision-2018 revolve around 5 Cs - technologies, and processes that alignment and common vision customer behaviours and their short term and long term data from multiple channels into coverage, convenience, confidence, have together created vast, about where the business needs to expectations are developing inside business and technological one view of what customers are convergence and cost. To achieve robust and dependable networks go. This often results to missed and outside your business, as well requirements. Following are three doing and what happens as a these, focus on four strategic and seamless systems that opportunities, sluggish as outside your sector, which is driving factors in India. result. In the back office, initiatives such as responsive guarantee herculean performance, or false starts. crucial to getting ahead of trends analytics and intelligence regulation, robust infrastructure, 1. Adoption: Post demonetisation transactional volumes at that can deliver or destroy value. provide near-real-time insights effective supervision and customer e-commerce & m-commerce breakneck speed, and with Business leaders must have a clear into customer needs and centricity is important. success is largely attributed to dependable security and and common understanding of Creating value in core behaviours that then determine the phenomenal growth of counter-checks built around exactly what digital means to them businesses RBI has periodically put forth its the types of messages and offers various digital payment them. and, as a result, what it means to vision for payment & settlement Digital's next element is rethinking technologies such as card their business. to deliver to the customer. systems so that the banks migrate 2. Agility: Today, aspects such as how to use new capabilities to

Financial Foresights 18 Financial Foresights 19 Industry Insights Industry Insights

2. Contextual interactivity them. That may include, for enormous success on a global scale. practices, digital awareness example, expanding existing within organisation and bring This means analyzing how a Every bank today seeks to build customer journeys into new out innovation from internal consumer is interacting with a enterprise value and drive growth businesses and services that employees. brand and modifying those through new distribution models, extend the relationship with the interactions to improve the innovative products and services, 4. External Forces customer, ideally to the benefit customer experience. The rising enhanced customer experience and of both parties. These a. Regulation - Keeping eye on number of customer interactions by harnessing advanced innovations in turn fuel more changes in regulation and adhere generates a stream of intelligence technologies. The fact that a few Culture

Expertise to expected output is required. Regulation interactions, create more Innovation Governance Internal User External User Measurement that allows brands to make organizations stand out from the Infrastructure RBI recently done lots of changes information, and increase the Service Providers better decisions about what their crowd, clearly indicates that their value of the customer-brand during demonetisation. Meeting customers want. And the rapid achievements aren't easy to relationship. E.g. offering him those regulations & compliance rise of wearable technology and emulate. EXTERNAL trip to his favourite destination PEOPLE PROCESS TECHNOLOGY CUSTOMER is vital for banking to have stable the Internet of Things represents FORCES as he is fond of tourism, In the banking sector, products, and secure banking .e.g. the latest wave of touch-points notifying him of an offer of services, and customer interactions regulation around limits of that will enable companies to movie tickets as he is fond of are geared towards both non- transaction , 2nd factor blend digital and physical seeing movies every weekend. physical and (increasingly) real- authentication , fraud risk experiences even more. e.g. looking' to an 'outward seeking' consumer, they must be time delivery. Hence, the mindset. Management processes significantly refined and management modules and so on Customer starts journey to buy a Building foundational digital opportunities presented by the to be implemented on time mobile from his mobile device and incentives must be aligned supplemented e.g. digitisation of capabilities information economy are truly and later in searching on laptop to drive high performance, status all operation process can be a b. Partnerships - Partnerships enormous, and the risks of being and end up visiting nearest The final element of our definition quo approaches must be KPI. provide enormous value, on of digital is about the technological marginalized are very real. judiciously challenged, and shopping branch. Experience on 3. Technology three major fronts - as sources of all channels should be seamless and organizational processes that To make rapid progress initiatives innovation must be fostered. talent, expertise and relevant a. Infrastructure - Upgrading the and all channels should interact allow an enterprise to be agile and & to capitalize on these Building and nurturing talent external data; as a supplement to existing infrastructure to capture internally to serve him in best fast. This foundation is made up of opportunities that they desire to must be made an imperative. internal resources and following two aspects - and harness the expanded way. realise the value from the digital 2. Process investment capacity; and as a internal and external data sets 1. Being digital is about using data and data revolution, banks need to means to jointly create entirely 3. Real-time automation a. Governance - While a bottoms- now available is a necessity. to make better and faster address the following 5 "Pillars" new distribution systems, up, functional approach can Senior leaders must ensure that Automation of customer decisions, devolving decision that form the base of any products and services. E.g. deliver a quick start, to truly the infrastructure being built is interactions can boost the making to smaller teams, and information-centric company: running Hackathon, campaigns become an information-centric aligned to specific strategic number of self-service options developing much more iterative among fintech can bring 1. People organization, it is absolutely goals. That the level of that help resolve problems and rapid ways of doing things. potential partners to server quickly, personalize a. Expertise - It is imperative to essential to have senior investment and pacing is linked customer needs on time and with communications to be more 2. A digital mind-set benchmark certain crucial skills, leadership drive this endeavour to the potential value that can be super experience. relevant, and deliver consistent institutionalizes cross-functional and to have appropriate with a cross-organizational derived and, importantly, that 5. Customer customer journeys no matter the collaboration, flattens recruitment and skill mandate. They need to lock this build out is aligned with channel, time, or device. e.g. hierarchies, and builds development processes in place. down strategic intent, assess progress on the other pillars e.g. a. External Customer - Achieving a onboarding, servicing & environments to encourage the In the absence of this, it is status, prioritize initiatives and implementation of cloud , block- better customer experience engagement model to be generation of new ideas. difficult for analysts spread establish necessary processes chain , enterprise service bus , should be the main premise of automated for any customer Incentives and metrics are across multiple functional across each pillar to achieve virtualisation etc potential each digital transformation across channels. Customer can developed to support such disciplines (like risk, decision change quickly and at scale. investment should come on time. strategy. This is critical for decision-making agility. open his account anytime from sciences, marketing, and b. Measurement / KPIs Financial b. Innovation - Running an achieving the long-awaited any channel and its straight operations) to harness their joint institutions have established innovation centre around new customer loyalty. New through. capabilities optimally.e.g. need detailed KPI's (key performance technology adoption for implementations in digital Digital Pillars & Building Blocks of UI/UX Engineer, Digital services and products must be 4. Journey-focused innovation indicators) for their businesses. banking, enhancement of of Banking officers, Data Scientist is need of However, if they are to accord existing services through "smart, responsive and tailored Serving customers well gives time. to the customer", describes Let's look at "building blocks" that with the need for speed, innovations, internal process re- banks to be innovative in how Ferrari. have allowed banks to achieve b. Culture - Banks must shift their accuracy and relevance engineering trough robotic they interact with and sell to orientation from an 'inward demanded by the modern process automation, DevOps b. Internal Customers - All

Financial Foresights 20 Financial Foresights 21 Industry Insights Industry Insights

2. Contextual interactivity them. That may include, for enormous success on a global scale. practices, digital awareness example, expanding existing within organisation and bring This means analyzing how a Every bank today seeks to build customer journeys into new out innovation from internal consumer is interacting with a enterprise value and drive growth businesses and services that employees. brand and modifying those through new distribution models, extend the relationship with the interactions to improve the innovative products and services, 4. External Forces customer, ideally to the benefit customer experience. The rising enhanced customer experience and of both parties. These a. Regulation - Keeping eye on number of customer interactions by harnessing advanced innovations in turn fuel more changes in regulation and adhere generates a stream of intelligence technologies. The fact that a few Culture

Expertise to expected output is required. Regulation interactions, create more Innovation Governance Internal User External User Measurement that allows brands to make organizations stand out from the Infrastructure RBI recently done lots of changes information, and increase the Service Providers better decisions about what their crowd, clearly indicates that their value of the customer-brand during demonetisation. Meeting customers want. And the rapid achievements aren't easy to relationship. E.g. offering him those regulations & compliance rise of wearable technology and emulate. EXTERNAL trip to his favourite destination PEOPLE PROCESS TECHNOLOGY CUSTOMER is vital for banking to have stable the Internet of Things represents FORCES as he is fond of tourism, In the banking sector, products, and secure banking .e.g. the latest wave of touch-points notifying him of an offer of services, and customer interactions regulation around limits of that will enable companies to movie tickets as he is fond of are geared towards both non- transaction , 2nd factor blend digital and physical seeing movies every weekend. physical and (increasingly) real- authentication , fraud risk experiences even more. e.g. looking' to an 'outward seeking' consumer, they must be time delivery. Hence, the mindset. Management processes significantly refined and management modules and so on Customer starts journey to buy a Building foundational digital opportunities presented by the to be implemented on time mobile from his mobile device and incentives must be aligned supplemented e.g. digitisation of capabilities information economy are truly and later in searching on laptop to drive high performance, status all operation process can be a b. Partnerships - Partnerships enormous, and the risks of being and end up visiting nearest The final element of our definition quo approaches must be KPI. provide enormous value, on of digital is about the technological marginalized are very real. judiciously challenged, and shopping branch. Experience on 3. Technology three major fronts - as sources of all channels should be seamless and organizational processes that To make rapid progress initiatives innovation must be fostered. talent, expertise and relevant a. Infrastructure - Upgrading the and all channels should interact allow an enterprise to be agile and & to capitalize on these Building and nurturing talent external data; as a supplement to existing infrastructure to capture internally to serve him in best fast. This foundation is made up of opportunities that they desire to must be made an imperative. internal resources and following two aspects - and harness the expanded way. realise the value from the digital 2. Process investment capacity; and as a internal and external data sets 1. Being digital is about using data and data revolution, banks need to means to jointly create entirely 3. Real-time automation a. Governance - While a bottoms- now available is a necessity. to make better and faster address the following 5 "Pillars" new distribution systems, up, functional approach can Senior leaders must ensure that Automation of customer decisions, devolving decision that form the base of any products and services. E.g. deliver a quick start, to truly the infrastructure being built is interactions can boost the making to smaller teams, and information-centric company: running Hackathon, campaigns become an information-centric aligned to specific strategic number of self-service options developing much more iterative among fintech can bring 1. People organization, it is absolutely goals. That the level of that help resolve problems and rapid ways of doing things. potential partners to server quickly, personalize a. Expertise - It is imperative to essential to have senior investment and pacing is linked customer needs on time and with communications to be more 2. A digital mind-set benchmark certain crucial skills, leadership drive this endeavour to the potential value that can be super experience. relevant, and deliver consistent institutionalizes cross-functional and to have appropriate with a cross-organizational derived and, importantly, that 5. Customer customer journeys no matter the collaboration, flattens recruitment and skill mandate. They need to lock this build out is aligned with channel, time, or device. e.g. hierarchies, and builds development processes in place. down strategic intent, assess progress on the other pillars e.g. a. External Customer - Achieving a onboarding, servicing & environments to encourage the In the absence of this, it is status, prioritize initiatives and implementation of cloud , block- better customer experience engagement model to be generation of new ideas. difficult for analysts spread establish necessary processes chain , enterprise service bus , should be the main premise of automated for any customer Incentives and metrics are across multiple functional across each pillar to achieve virtualisation etc potential each digital transformation across channels. Customer can developed to support such disciplines (like risk, decision change quickly and at scale. investment should come on time. strategy. This is critical for decision-making agility. open his account anytime from sciences, marketing, and b. Measurement / KPIs Financial b. Innovation - Running an achieving the long-awaited any channel and its straight operations) to harness their joint institutions have established innovation centre around new customer loyalty. New through. capabilities optimally.e.g. need detailed KPI's (key performance technology adoption for implementations in digital Digital Pillars & Building Blocks of UI/UX Engineer, Digital services and products must be 4. Journey-focused innovation indicators) for their businesses. banking, enhancement of of Banking officers, Data Scientist is need of However, if they are to accord existing services through "smart, responsive and tailored Serving customers well gives time. to the customer", describes Let's look at "building blocks" that with the need for speed, innovations, internal process re- banks to be innovative in how Ferrari. have allowed banks to achieve b. Culture - Banks must shift their accuracy and relevance engineering trough robotic they interact with and sell to orientation from an 'inward demanded by the modern process automation, DevOps b. Internal Customers - All

Financial Foresights 20 Financial Foresights 21 Industry Insights Industry Insights

departments should be involved As traditional processes of pre- Banks should use analytics capabilities "as a service" - for across a variety of platforms that Intent is very clear by national in this new strategy, not just sale, sale and post-sale are based on internal, external and example in areas such leveraging offers a human touch for high leadership to be Digital India, to be marketing or innovation but also becoming more linear and "sentiment" customer data to cloud delivery, digital media and value interactions. A 24x7 bank Cashless India, to be Educated the legal and regulatory teams. "woven" into the whole banking create a deep, intuitive and digital channel expertise to drives continuous daily India. In spite of various current Cross knowledge is one of the experience, every interaction actionable understanding of create targeted and personalized interaction by building challenges e.g. network , culture , pillars of the new digital culture needs to be sales- and service- overall customer needs, and advertisements, whilst cutting partnerships and connections device availability , connectivity , and fosters responsiveness in oriented in order to catch all the driving capabilities such as next mass media costs. with provider partners who offer electricity in remote areas , logistics business processes, in efforts to interaction opportunities, whilst best action, personal finance goods and services in every area expenses with digital banking and 7. Contextuality create, launch or improve a at the same time engendering management. of consumption, including retail, mobility, the need is no longer to "leap-frog" but to "deep-dive" into product or service. E.g. experience excellence Using customer insights and home services, health and 5. Multichannel CRM the future. Going digital and brainstorming around a account throughout (all channel, 24x7). advanced analytics to security, travel and leisure, mobile for a bank is no longer an opening strightthrough process Banks should have a truly proactively provide personalized communication and 3. Partner Ecosystem Set-up and option, it's a simple bare necessity - among business, technology , multichannel CRM system, to solutions. By tapping its wealth transportation. Orchestration, Including Digital to collaborate and flourish. All create a holistic view on of transactional data, without compliance, security etc will give Wallet these and rest are taking India to customers and deepen the ever sharing analytic information Digital Banking is a improvement to that solution the threshold of the big league and Banks can leverage the existing relationship. It's possible to outside of its four walls, the bank Journey to make the country battle-ready to 24X7 Banking Model ecosystem (individual, SME and interact with customer from all reaches out to the right third- We have experienced DIGITAL compete with the most influential corporate customers; merchants; channels in a more valuable way, party providers and other key Becoming a 24x7 bank can going by the deep penetration industrial and financial powers of partners) to connect and fulfil both for clients and for the bank. players to build a digital transform a traditional banking within a relatively lesser global businesses. customer needs, through an customer experience combining organization from being a reactive 6. Bank as Service turnaround time, state-of-the-art insightful and tailored mobile, big data, analytics, We can't create a digital vision if product provider to being a digital payment systems are now you don't have leaders who experience. To accelerate going to market, a digital marketing coupling, proactive financial advisor. poised to take quantum leaps in understand digital. Digital India bank can acquire specific digital ticketing capabilities. 4. Customer Analytics, Big Data this new era that is largely driven has leaders & the goal is to make 24x7 bank leverages the vast 8. Banking beyond the borders by the ubiquitous internet. These banking cheaper, more efficient and amount of insight it possesses to disruptive dynamics and revenue Using customer data to become a easier to access for all of the become central to a customer's models are literally the new game n 12:00 country's citizens. financial and non-financial digital virtual advisor. Provides services changers - causing tangible tectonic that are digitally optimized ecosystem. 11:00 shifts across major verticals. 1:00 The 24x7 bank reinvents itself as a value aggregator, advice provider and access facilitator, acting Omni- 10:00 Banking on channel proactively on the customer's the Distribution & customer’s Architecture behalf, improving reputation and terms 2:00 trust.

1. Omni-channel Distribution & Bank As Service 24x7 Customer Experience Architecture Prasanna Lohar, Head Technology – Innovation & Architecture, DCB Bank Limited. Prasanna has 16+ Years of Experience as Technologist who has delivered rock solid software solutions for industry leading enterprises with lean and agile teams. Technical Architect with view in 9:00 articulation and decision making skills to choose from one of multiple technologies in the presentation, integration, service layers, operating By having a retail-like 3:00 Partner platforms. A Professional Banker having experience in Digital, Mobility, Payment, Analytics, Security, UI/UX, & Innovation areas. distribution strategy that gives Multichannel Ecosystem every channel the same sales & CRM Set-up and Currently He is working as Innovation Head & Technical Architect at DCB Bank. He is setting up innovation framework at DCB Bank. Customer Orchestration service functionalities, the same At DCB he has worked as Digital Head & part of various team deliveries like India's first Aadhaar enabled ATM, Straight Thru Fixed Deposit Analytics, Big A/c Opening product - Zippi, Omni-Channel Framework for Bank, Mobile banking & Mobile Apps, Internet Banking Initiative, Unified interaction logic and total Data, Next Best Action Payment Interface (UPI), Bharat Bill Payment , Switch & Cards relevant initiatives. integration, banks give 8:00 4:00 Over 1.6 decades of Industry Experience Engineering and Development, Product Development, Strategy, Governance, Risk Management, customers a seamless experience Finance, Business Process Management, Audit, Compliance, Consulting, Enterprise Architecture, Mobile Apps, Digital Transformation , and full freedom to choose the Fintech, E-Commerce, Payments, Platform and Product Innovation, Data Science, Machine Learning, Artificial Intelligence, Open Stack channel(s) they prefer in every Cloud, Analytics, Big Data, IOT, BlockChain, Biometric , Virtualization, UI-UX, , Mobile Innovation, Product Roadmap Strategy, Security solutions ,Business Development stage and need. 7:00 Since 2016, Representation for Bank at various Banking Conferences as Key Note Speaker / Panellist on latest trends. Represented Bank at 2. Customer Experience 5:00 various Panel discussions, Magazine interviews, Column Writer on Digital Banking Forums & current industry trends. He has received many Management awards in Banking Sector Viz. DC Movement, ZIPPI Product, and Mobility Drive in Branch Banking, Rupay Card , India's First Aadhaar ATM , Top 100 'Infosec Maestros', CIO Powerlist Nomination for 2017. 6:00

Financial Foresights 22 Financial Foresights 23 Industry Insights Industry Insights

departments should be involved As traditional processes of pre- Banks should use analytics capabilities "as a service" - for across a variety of platforms that Intent is very clear by national in this new strategy, not just sale, sale and post-sale are based on internal, external and example in areas such leveraging offers a human touch for high leadership to be Digital India, to be marketing or innovation but also becoming more linear and "sentiment" customer data to cloud delivery, digital media and value interactions. A 24x7 bank Cashless India, to be Educated the legal and regulatory teams. "woven" into the whole banking create a deep, intuitive and digital channel expertise to drives continuous daily India. In spite of various current Cross knowledge is one of the experience, every interaction actionable understanding of create targeted and personalized interaction by building challenges e.g. network , culture , pillars of the new digital culture needs to be sales- and service- overall customer needs, and advertisements, whilst cutting partnerships and connections device availability , connectivity , and fosters responsiveness in oriented in order to catch all the driving capabilities such as next mass media costs. with provider partners who offer electricity in remote areas , logistics business processes, in efforts to interaction opportunities, whilst best action, personal finance goods and services in every area expenses with digital banking and 7. Contextuality create, launch or improve a at the same time engendering management. of consumption, including retail, mobility, the need is no longer to "leap-frog" but to "deep-dive" into product or service. E.g. experience excellence Using customer insights and home services, health and 5. Multichannel CRM the future. Going digital and brainstorming around a account throughout (all channel, 24x7). advanced analytics to security, travel and leisure, mobile for a bank is no longer an opening strightthrough process Banks should have a truly proactively provide personalized communication and 3. Partner Ecosystem Set-up and option, it's a simple bare necessity - among business, technology , multichannel CRM system, to solutions. By tapping its wealth transportation. Orchestration, Including Digital to collaborate and flourish. All create a holistic view on of transactional data, without compliance, security etc will give Wallet these and rest are taking India to customers and deepen the ever sharing analytic information Digital Banking is a improvement to that solution the threshold of the big league and Banks can leverage the existing relationship. It's possible to outside of its four walls, the bank Journey to make the country battle-ready to 24X7 Banking Model ecosystem (individual, SME and interact with customer from all reaches out to the right third- We have experienced DIGITAL compete with the most influential corporate customers; merchants; channels in a more valuable way, party providers and other key Becoming a 24x7 bank can going by the deep penetration industrial and financial powers of partners) to connect and fulfil both for clients and for the bank. players to build a digital transform a traditional banking within a relatively lesser global businesses. customer needs, through an customer experience combining organization from being a reactive 6. Bank as Service turnaround time, state-of-the-art insightful and tailored mobile, big data, analytics, We can't create a digital vision if product provider to being a digital payment systems are now you don't have leaders who experience. To accelerate going to market, a digital marketing coupling, proactive financial advisor. poised to take quantum leaps in understand digital. Digital India bank can acquire specific digital ticketing capabilities. 4. Customer Analytics, Big Data this new era that is largely driven has leaders & the goal is to make 24x7 bank leverages the vast 8. Banking beyond the borders by the ubiquitous internet. These banking cheaper, more efficient and amount of insight it possesses to disruptive dynamics and revenue Using customer data to become a easier to access for all of the become central to a customer's models are literally the new game n 12:00 country's citizens. financial and non-financial digital virtual advisor. Provides services changers - causing tangible tectonic that are digitally optimized ecosystem. 11:00 shifts across major verticals. 1:00 The 24x7 bank reinvents itself as a value aggregator, advice provider and access facilitator, acting Omni- 10:00 Banking on channel proactively on the customer's the Distribution & customer’s Architecture behalf, improving reputation and terms 2:00 trust.

1. Omni-channel Distribution & Bank As Service 24x7 Customer Experience Architecture Prasanna Lohar, Head Technology – Innovation & Architecture, DCB Bank Limited. Prasanna has 16+ Years of Experience as Technologist who has delivered rock solid software solutions for industry leading enterprises with lean and agile teams. Technical Architect with view in 9:00 articulation and decision making skills to choose from one of multiple technologies in the presentation, integration, service layers, operating By having a retail-like 3:00 Partner platforms. A Professional Banker having experience in Digital, Mobility, Payment, Analytics, Security, UI/UX, & Innovation areas. distribution strategy that gives Multichannel Ecosystem every channel the same sales & CRM Set-up and Currently He is working as Innovation Head & Technical Architect at DCB Bank. He is setting up innovation framework at DCB Bank. Customer Orchestration service functionalities, the same At DCB he has worked as Digital Head & part of various team deliveries like India's first Aadhaar enabled ATM, Straight Thru Fixed Deposit Analytics, Big A/c Opening product - Zippi, Omni-Channel Framework for Bank, Mobile banking & Mobile Apps, Internet Banking Initiative, Unified interaction logic and total Data, Next Best Action Payment Interface (UPI), Bharat Bill Payment , Switch & Cards relevant initiatives. integration, banks give 8:00 4:00 Over 1.6 decades of Industry Experience Engineering and Development, Product Development, Strategy, Governance, Risk Management, customers a seamless experience Finance, Business Process Management, Audit, Compliance, Consulting, Enterprise Architecture, Mobile Apps, Digital Transformation , and full freedom to choose the Fintech, E-Commerce, Payments, Platform and Product Innovation, Data Science, Machine Learning, Artificial Intelligence, Open Stack channel(s) they prefer in every Cloud, Analytics, Big Data, IOT, BlockChain, Biometric , Virtualization, UI-UX, , Mobile Innovation, Product Roadmap Strategy, Security solutions ,Business Development stage and need. 7:00 Since 2016, Representation for Bank at various Banking Conferences as Key Note Speaker / Panellist on latest trends. Represented Bank at 2. Customer Experience 5:00 various Panel discussions, Magazine interviews, Column Writer on Digital Banking Forums & current industry trends. He has received many Management awards in Banking Sector Viz. DC Movement, ZIPPI Product, and Mobility Drive in Branch Banking, Rupay Card , India's First Aadhaar ATM , Top 100 'Infosec Maestros', CIO Powerlist Nomination for 2017. 6:00

Financial Foresights 22 Financial Foresights 23 Industry Insights Industry Insights

only the customer's Aadhaar On the customer experience side, attacks on banks in India. It is number and biometric data digital millennials are expecting important to bring in Cyber ‘SMART Digital Banking Platforms’ (fingerprint/iris scan) as simplified and personalized Governance and leverage authentication. experience, faster response and analytics, machine learning and for Enriched Customer Experience and Growth automation of services. Banks need deception techniques as also All the above initiatives through the to gear up to overcome these secure coding and testing BHIM platform (UPI, USSD, internal and external challenges. On practices for threat prevention Aadhaar Pay), IMPS (Immediate the regulatory side banking and deduction and thereby Murali Mahalingam Payment Service) and debit cards technology needs to be agile in reducing risks for banks. Industry Director, Banking & FS creates one of the largest handling regulatory changes like SAP interoperable payment eco systems M- Modern IT architecture that has GST and INDAS within the given in the world as India leap frogs modern data warehouse timelines. towards adoption of digital combined with advanced payments and moves towards a SMART Digital Platforms analytics capabilities for data less-cash economy. There is an driven decision making. Newer for the cash-light India Background income households, small estimated 35 crore citizens who use emergence of fintechs who have an technology innovations eg API businesses, unorganized sector feature phones or other phones important role to play and To overcome the above challenges based, AI (Robo advisories), The financial sector in India is entities and other users. without data. The third segment of contribute to the less-cash economy. the need of the hour is to have a Block chain technology, IOT currently experiencing a golden people, those without phones, are Fintechs are focusing on services for SMART digital banking platform period, and its key driver is the Aadhaar, the world's largest Modern architecture that is based often the rural, poor and socially unbanked like digital payments and that is S-Scalable and Secure, built effort to move towards a less-cash national identification number on "Modern Data warehouse" disadvantaged and thereby the SME credit, and process with Modern IT architecture, that economy. The Government of India project, has covered over 99 per that combines structured and neediest for easy access to financial enhancements like API Banking provides for business Agility, and recently announced its step to cent of Indians aged 18 and above unstructured data (leveraging services. Being the most difficult and Robotics to help strengthen the helps banks and financial demonetization. This has created (as of 27th Jan 2017), per UIDAI. social media insights) to provide category to reach out, It is digital agenda. institutions to Re-imagine business the greatest impetus for the With Aadhaar helping in direct a single version of truth with important to provide assisted models and processes and helps transition from cash to digital biometric Identification for the comprehensive current and banking through banking Challenges reduce their TCO (Total cost of transactions for the Indian unbanked and Jan Dhan bank historical information. This rich correspondents to create an account ownership). accounts and mobile phones Banks and financial institutions are data is the new oil that will help economy. leveraging AEPS (Aadhar enabled allowing direct transfer of funds facing challenges due to the Let us look at the capabilities that banks generate new revenue The foundation for a less-cash payment systems) and deposit and into their accounts, the dynamic changing landscape. The are needed from this platform on all streams. The recent economy was set in the JAM (Jan withdraw money through Micro- foundational infrastructure for bank's core IT systems are running these aspects. demonetization has left a large dhan-Aadhar-Mobile) trinity. The ATM's (an AEPS tool). digital banking has been created. multiple systems, some of which digital footprint and banks are in PMJDY scheme initiated in August Scalable and Secure The JAM trinity alone wasn't These micro-ATMs would be able are legacy and others are based on a unique position to mine this 2014 as a tool for financial inclusion adequate to make digital payments to conduct an eKYC (Electronic newer technologies, thus resulting The platform needs to provide a data using advanced analytics has managed to get over 22 crore a preferred transaction mode. It Know Your Customer) using in a two-speed world. Banks spend seamless onboarding experience technologies for customer bank accounts created for took other technologies such as UPI Aadhaar and open a bank account, around 80 to 90% cost in for customers with E-KYC, segmentation. Banks will thus be previously unbanked citizens. RBI (Unified Payments Interface) and making them complete one-stop- maintaining these legacy Aadhar, UPI, BHIM integration able to provide real-time has strengthened this initiative by wallets, which have become the shops for all banking needs. Soon, applications and there is less etc. It needs to be able to scale contextualised offers based on offering new banking licenses to alternate payment modes available Aadhaar Pay (Aadhaar enabled budget available for innovation based on the volumes we are customer profiling, drive cross- payment banks and small banks in post-demonetization and are Point of Sale devices, complete with with the newer technologies. The envisaging for digital payments. sell and up-sell, increase market 2015. The objectives of setting up gaining recognition. The latest step fingerprint scanners) will be current multi-channel applications Eg Paytm has already crossed 200 share, and identify EWI (Early payments banks was to further by government is the introduction installed and enabled at retail have challenges of scalability, million customers and many warning indicators) for financial inclusion by providing (i) of the BHIM platform. While apps touchpoints. These will allow for security, integration and agility others are envisaging this volume identifying non-performing small savings accounts and (ii) cater to the estimated 25 crore direct transactions from a resulting in impact on customer in the short term. Recently there assets, which will help reduce payments/remittance services to citizens with smartphones and customer's Aadhaar-linked bank service and customer experience. has been an increase in cyber- risk. migrant labour workforce, low internet access, *99# caters to the account to the retailer, requiring

Financial Foresights 24 Financial Foresights 25 Industry Insights Industry Insights

only the customer's Aadhaar On the customer experience side, attacks on banks in India. It is number and biometric data digital millennials are expecting important to bring in Cyber ‘SMART Digital Banking Platforms’ (fingerprint/iris scan) as simplified and personalized Governance and leverage authentication. experience, faster response and analytics, machine learning and for Enriched Customer Experience and Growth automation of services. Banks need deception techniques as also All the above initiatives through the to gear up to overcome these secure coding and testing BHIM platform (UPI, USSD, internal and external challenges. On practices for threat prevention Aadhaar Pay), IMPS (Immediate the regulatory side banking and deduction and thereby Murali Mahalingam Payment Service) and debit cards technology needs to be agile in reducing risks for banks. Industry Director, Banking & FS creates one of the largest handling regulatory changes like SAP interoperable payment eco systems M- Modern IT architecture that has GST and INDAS within the given in the world as India leap frogs modern data warehouse timelines. towards adoption of digital combined with advanced payments and moves towards a SMART Digital Platforms analytics capabilities for data less-cash economy. There is an driven decision making. Newer for the cash-light India Background income households, small estimated 35 crore citizens who use emergence of fintechs who have an technology innovations eg API businesses, unorganized sector feature phones or other phones important role to play and To overcome the above challenges based, AI (Robo advisories), The financial sector in India is entities and other users. without data. The third segment of contribute to the less-cash economy. the need of the hour is to have a Block chain technology, IOT currently experiencing a golden people, those without phones, are Fintechs are focusing on services for SMART digital banking platform period, and its key driver is the Aadhaar, the world's largest Modern architecture that is based often the rural, poor and socially unbanked like digital payments and that is S-Scalable and Secure, built effort to move towards a less-cash national identification number on "Modern Data warehouse" disadvantaged and thereby the SME credit, and process with Modern IT architecture, that economy. The Government of India project, has covered over 99 per that combines structured and neediest for easy access to financial enhancements like API Banking provides for business Agility, and recently announced its step to cent of Indians aged 18 and above unstructured data (leveraging services. Being the most difficult and Robotics to help strengthen the helps banks and financial demonetization. This has created (as of 27th Jan 2017), per UIDAI. social media insights) to provide category to reach out, It is digital agenda. institutions to Re-imagine business the greatest impetus for the With Aadhaar helping in direct a single version of truth with important to provide assisted models and processes and helps transition from cash to digital biometric Identification for the comprehensive current and banking through banking Challenges reduce their TCO (Total cost of transactions for the Indian unbanked and Jan Dhan bank historical information. This rich correspondents to create an account ownership). accounts and mobile phones Banks and financial institutions are data is the new oil that will help economy. leveraging AEPS (Aadhar enabled allowing direct transfer of funds facing challenges due to the Let us look at the capabilities that banks generate new revenue The foundation for a less-cash payment systems) and deposit and into their accounts, the dynamic changing landscape. The are needed from this platform on all streams. The recent economy was set in the JAM (Jan withdraw money through Micro- foundational infrastructure for bank's core IT systems are running these aspects. demonetization has left a large dhan-Aadhar-Mobile) trinity. The ATM's (an AEPS tool). digital banking has been created. multiple systems, some of which digital footprint and banks are in PMJDY scheme initiated in August Scalable and Secure The JAM trinity alone wasn't These micro-ATMs would be able are legacy and others are based on a unique position to mine this 2014 as a tool for financial inclusion adequate to make digital payments to conduct an eKYC (Electronic newer technologies, thus resulting The platform needs to provide a data using advanced analytics has managed to get over 22 crore a preferred transaction mode. It Know Your Customer) using in a two-speed world. Banks spend seamless onboarding experience technologies for customer bank accounts created for took other technologies such as UPI Aadhaar and open a bank account, around 80 to 90% cost in for customers with E-KYC, segmentation. Banks will thus be previously unbanked citizens. RBI (Unified Payments Interface) and making them complete one-stop- maintaining these legacy Aadhar, UPI, BHIM integration able to provide real-time has strengthened this initiative by wallets, which have become the shops for all banking needs. Soon, applications and there is less etc. It needs to be able to scale contextualised offers based on offering new banking licenses to alternate payment modes available Aadhaar Pay (Aadhaar enabled budget available for innovation based on the volumes we are customer profiling, drive cross- payment banks and small banks in post-demonetization and are Point of Sale devices, complete with with the newer technologies. The envisaging for digital payments. sell and up-sell, increase market 2015. The objectives of setting up gaining recognition. The latest step fingerprint scanners) will be current multi-channel applications Eg Paytm has already crossed 200 share, and identify EWI (Early payments banks was to further by government is the introduction installed and enabled at retail have challenges of scalability, million customers and many warning indicators) for financial inclusion by providing (i) of the BHIM platform. While apps touchpoints. These will allow for security, integration and agility others are envisaging this volume identifying non-performing small savings accounts and (ii) cater to the estimated 25 crore direct transactions from a resulting in impact on customer in the short term. Recently there assets, which will help reduce payments/remittance services to citizens with smartphones and customer's Aadhaar-linked bank service and customer experience. has been an increase in cyber- risk. migrant labour workforce, low internet access, *99# caters to the account to the retailer, requiring

Financial Foresights 24 Financial Foresights 25 Industry Insights

l The digital banking platform API banking allows the bank's in 13 languages to help promote enrich offerings in the areas of quickly gaining customer wallet Third, micro and small retail needs to brings together both banking systems to be seamlessly digital and inclusive banking. digital payments, digital lending share through all the above payments should be brought into transactional business processes and securely integrated with Further value added services are and wealth management. This mentioned digital innovations. the net via an exponential increase and analytical business corporate clients' ERP systems. offered along with wallet eg bill collaboration would help in merchant acceptance points that intelligence. With this, the bank Banks are also leveraging Robo payments, movie tickets, rail and banking customers to get more Way Forward take payments via BHIM. These can turn data insights into advisors for improving customer airline ticketing, food and dining, innovative offerings. The goal for the future should be to touch points should leverage the actionable information, thus service, eg HDFC bank has gifts etc all this linked to the new generation SMART digital T- TCO reduction. The new first encourage digital payments at allowing the bank to be launched- IRA (intelligent digital mobile wallet there by banking platforms to transition generation platform investment cash touchpoints (like Railways, Oil transparent and responsive based robotics assistant) at one of its promoting cash-less payments. from cash to cash-light india to will help banks and financial Marketing companies (LPG, Petrol on facts and not guesses. With branches to help with smoother providing contextual, efficient and Re-imagine business models & institutions reduce TCO thereby & Diesel), Farming, Food, FMCG, the platform in place, banks can customer service, marketing, enriched customer experience process. Traditional banking justifying the returns on these etc.). Second, all businesses should start small, and as new issues employee assistance and process focused on agility and convenience models are no longer sustainable. investments. Hence, there is need be incentivized to pay employees come up they can incrementally automation. We will be seeing of the customer. n Indian banks are revaluating the to monetise the investments by and contractors in a digital manner. add connected solutions to many more banks using these customer engagement strategies, address new business challenges advisors in future for customer networks and digital capabilities without negatively impacting service. Block chain technologies and data insights to find new real operations. From this extensive are evolving with use cases in time ways of delivering the foundation, a digital core, banks vendor financing, trade finance, product and services. Indian can set themselves up to address outward/ inward remittance, banks are creating their market today's issues while having the asset tracking, record place with e-commerce players agility to handle future management, e-KYC, etc. For eg Flipkart, Amazon etc innovations. This enables banks example, YES BANK has partnering to offer value added to explore new business models implemented a multi-nodal services eg smart buy from such as banking as a service by Blockchain transaction to fully HDFC offers flights, hotels, extending the value chain digitize vendor financing for travel, utility and integration through partners with retailers, Bajaj Electricals. ICICI bank has with flipkart to provide manufacturers, digital successfully executed customers a one-stop seamless communities and others, build transactions in international trade experience. This re-imagined market places for financial finance and remittance using models will help banks to cross- services and with integrated blockchain technology in sell and up-sell products and banking through low cost cloud partnership with Emirates NBD, services to customers and platforms and mobile services a leading banking group in the increase wallet share and be more Middle East. IOT integrations of l Banks in India need to adopt new profitable. POS devices with Aadhar, finger innovations eg APIs, Artificial print scanners etc is another Banks need to reimagine process Intelligence, Block chain, important step to help move eg robo-advisors offering advice Disclaimer: The views expressed in the article are personal and do not reect the views of SAP India ltd. Augmented and Virtual reality, towards cash less transactions. to wealth management IOT. Banks are working on customers, interactive chat-bots making their APIs available for Agile platform that helps banks offering advice in account Mr. Murali Mahalingam is the Industry Director, Banking & FS for SAP India Subcontinent. He has more than 25 Years of Professional integration with customers and to innovate and launched new experience in the Banking and FS Domain having anchored business and technologies strategies and transformations with expertise in management. These enriched product, process, delivery, advisory consulting and account management. He has extensively led large engagements for banks and financial payment regulators. For eg. Yes products to go to market faster. processes will help improve institutions in India and abroad to help them derive value from their Digital business transformation initiatives. bank is offering the digitization Eg SBI launches its SBI customer satisfaction. Banks are Murali has been with SAP for the last three years and is helping banks and financial institutions strategize and Re-imagining customer of the B2B supply chain with the Buddy(wallet) with innovative service and experience in a Digital world and derive value leveraging new generation Digital Platforms. He has been a Speaker in Industry collaborating with fintechs to events conducted by FICCI and IBA sharing his insights with banks and financial institutions on these topics. He has worked with leading launch of API banking services. wallet offerings in a short period product software companies, such as Infosys, Misys and with leading banks such as ICICI bank and DCB.

Financial Foresights 26 Financial Foresights 27 Industry Insights

l The digital banking platform API banking allows the bank's in 13 languages to help promote enrich offerings in the areas of quickly gaining customer wallet Third, micro and small retail needs to brings together both banking systems to be seamlessly digital and inclusive banking. digital payments, digital lending share through all the above payments should be brought into transactional business processes and securely integrated with Further value added services are and wealth management. This mentioned digital innovations. the net via an exponential increase and analytical business corporate clients' ERP systems. offered along with wallet eg bill collaboration would help in merchant acceptance points that intelligence. With this, the bank Banks are also leveraging Robo payments, movie tickets, rail and banking customers to get more Way Forward take payments via BHIM. These can turn data insights into advisors for improving customer airline ticketing, food and dining, innovative offerings. The goal for the future should be to touch points should leverage the actionable information, thus service, eg HDFC bank has gifts etc all this linked to the new generation SMART digital T- TCO reduction. The new first encourage digital payments at allowing the bank to be launched- IRA (intelligent digital mobile wallet there by banking platforms to transition generation platform investment cash touchpoints (like Railways, Oil transparent and responsive based robotics assistant) at one of its promoting cash-less payments. from cash to cash-light india to will help banks and financial Marketing companies (LPG, Petrol on facts and not guesses. With branches to help with smoother providing contextual, efficient and Re-imagine business models & institutions reduce TCO thereby & Diesel), Farming, Food, FMCG, the platform in place, banks can customer service, marketing, enriched customer experience process. Traditional banking justifying the returns on these etc.). Second, all businesses should start small, and as new issues employee assistance and process focused on agility and convenience models are no longer sustainable. investments. Hence, there is need be incentivized to pay employees come up they can incrementally automation. We will be seeing of the customer. n Indian banks are revaluating the to monetise the investments by and contractors in a digital manner. add connected solutions to many more banks using these customer engagement strategies, address new business challenges advisors in future for customer networks and digital capabilities without negatively impacting service. Block chain technologies and data insights to find new real operations. From this extensive are evolving with use cases in time ways of delivering the foundation, a digital core, banks vendor financing, trade finance, product and services. Indian can set themselves up to address outward/ inward remittance, banks are creating their market today's issues while having the asset tracking, record place with e-commerce players agility to handle future management, e-KYC, etc. For eg Flipkart, Amazon etc innovations. This enables banks example, YES BANK has partnering to offer value added to explore new business models implemented a multi-nodal services eg smart buy from such as banking as a service by Blockchain transaction to fully HDFC offers flights, hotels, extending the value chain digitize vendor financing for travel, utility and integration through partners with retailers, Bajaj Electricals. ICICI bank has with flipkart to provide manufacturers, digital successfully executed customers a one-stop seamless communities and others, build transactions in international trade experience. This re-imagined market places for financial finance and remittance using models will help banks to cross- services and with integrated blockchain technology in sell and up-sell products and banking through low cost cloud partnership with Emirates NBD, services to customers and platforms and mobile services a leading banking group in the increase wallet share and be more Middle East. IOT integrations of l Banks in India need to adopt new profitable. POS devices with Aadhar, finger innovations eg APIs, Artificial print scanners etc is another Banks need to reimagine process Intelligence, Block chain, important step to help move eg robo-advisors offering advice Disclaimer: The views expressed in the article are personal and do not reect the views of SAP India ltd. Augmented and Virtual reality, towards cash less transactions. to wealth management IOT. Banks are working on customers, interactive chat-bots making their APIs available for Agile platform that helps banks offering advice in account Mr. Murali Mahalingam is the Industry Director, Banking & FS for SAP India Subcontinent. He has more than 25 Years of Professional integration with customers and to innovate and launched new experience in the Banking and FS Domain having anchored business and technologies strategies and transformations with expertise in management. These enriched product, process, delivery, advisory consulting and account management. He has extensively led large engagements for banks and financial payment regulators. For eg. Yes products to go to market faster. processes will help improve institutions in India and abroad to help them derive value from their Digital business transformation initiatives. bank is offering the digitization Eg SBI launches its SBI customer satisfaction. Banks are Murali has been with SAP for the last three years and is helping banks and financial institutions strategize and Re-imagining customer of the B2B supply chain with the Buddy(wallet) with innovative service and experience in a Digital world and derive value leveraging new generation Digital Platforms. He has been a Speaker in Industry collaborating with fintechs to events conducted by FICCI and IBA sharing his insights with banks and financial institutions on these topics. He has worked with leading launch of API banking services. wallet offerings in a short period product software companies, such as Infosys, Misys and with leading banks such as ICICI bank and DCB.

Financial Foresights 26 Financial Foresights 27 Industry Insights Industry Insights

While most banks are burdened by also be largely driven by the apps. However, digital legacy systems and processes, India cloud-first strategy. technologies are evolving at an Digital Banking - New Horizons has leapfrogged into the era of Demonetisation is pushing India unprecedented rate, and so is innovation in banking by adopting towards a cashless society, and customer adoption. To keep the latest in technology. Today's as banks prepare to deal with the pace, banks would be required in a Cash-light India digital age and hyper-connected increased influx of electronic to provide services on a gamut of environment requires banks to re- transactions, cloud will provide connected devices and imagine their business banks with the required wearables. Apps, while still AKS Namboodiri continuously, and Indian banks are elasticity to meet these demands. widely used, are not the only General Manager IT & IRMD leading the pack when it comes to channel for customer interaction. 3. Usage of Blockchains Dhanlaxmi Bank Limited transforming from digital to truly Today we have smart virtual digital. The year 2017 will be no As banks try to become more personal assistants on mobile different for the Indian banking efficient and agile to meet the phones that can engage with sector; there will be growth fuelled increasing demands of customers in a more interactive by innovative initiatives such as customers, blockchain will be manner. Unified Payments Interface (UPI) one of the enablers for re- he demonetisation of Indian The digital activity levels were low December as demonetisation 6. Banking architecture and technology. Our top picks for imagining processes. In 2017, Rupees 500 and 1000 in the initial weeks of progressed. There was a sudden simplification major technology trends that will banks will increasingly move announced on 8th Nov 2016 demonetisation as people were surge in the volume of digital T reshape Indian banking are as some projects from pilot to All of these overlying has no doubt thrown open a new busy depositing or exchanging the transactions and for many people it follows: technologies will be built on the door to the digital banking world. banned notes. But it increased from was an enforced learning of the production and leverage blockchain to automate inter- bedrock of banking architectural new technologies. 1. Open banking is the new norm organisational processes. The simplification. The new year will The following table illustrates the sudden growth Open banking-a connected recent Emirates NBD and ICICI see banks move to (Value in % y-o-y) ecosystem for financial and non- Bank partnership to launch a componentisation instead of the Oct'16 Nov'16 Dec'16 Jan'17 Feb'17 financial services with multiple blockchain pilot network for traditional monolithic NEFT 37.6 38.3 40.8 60.2 49.5 underlying service providers-is international remittances and architecture. In other words, CTS 2.9 8.6 13 19.3 0.8 the future of banking. The trade finance is a precursor for complex architecture will be IMPS 150.7 135.9 186.6 196.7 184.2 launch of UPI by the National advances in this technology. broken up into smaller bite-sized Payments Corporation of India pieces for ease of deployment 4. Artificial Intelligence (NPCI) has thrown open the and upgrade for specific Growth was good in October 2016, around on-boarding customers to change in the medium term. gates for innovation in the open Artificial intelligence (AI) has the functionalities. mainly on account of festive season. digital platforms. It was found that banking space. potential to transform both front Componentisation will not only Increasing online bank fraud has But it continued further from only 23% of people with access to office and back office operations increase agility to modernise proved that security is a vital issue, 2. Banking on the cloud first November 16 to January 17 as well. the internet do digital banking. with its self-improving selectively to keep pace with both to establish a relationship of strategy This was a positive fallout of Digital on-boarding is a revolution programs. AI has already proven current technology trends, but trust with the consumer (a security demonetisation. However, the pace in terms of customer experience, Progressive banks are already itself in providing seamless also allow for risk-mitigation of breach in a banking system can be a of growth moderated somewhat in with strong commercial making strides in cloud differentiated customer projects. With initiatives like huge blow in terms of public image February. Another fallout is the implications: the new processes adoption. Disruptive experience on digital channels, demonetisation, the Indian and business) and to face phenomenon of cash losing its have a great potential for business technologies that are changing and security measures with its government has made it clear regulatory compliance, as with -of appeal as demonstrated by a development through cross-selling the face of business-Big Data, integration within the banking that India will be yanked away course- protecting business assets. decrease of about 38% cash and up-selling techniques and blockchain, artificial intelligence infrastructure. from a cash-based economy. GST Given the nature of the on- withdrawals after December 30, above all for increasing customer's (AI), IoT-will be leveraged using rollout will give further impetus boarding processes, biometric 5. More things to bank on 2016 demonetisation is proving loyalty by implementing a cloud computing. Indian banks to the Indian economy. In 2017, security measures will be crucial in John Maynard Keynes' liquidity customer journey design that's are coming around to the idea The year 2016 was the year of banks will not only have to keep these new environments. The key preference theory wrong. attractive and comfortable. that the business agility mobile-first strategy. Indian up with the growing to successfully developing a secure Currently there are few completely provided by cloud outweighs the banks leveraged the increasing expectations of a billion Coming back to the digital banking biometric system is linked to three online on-boarding processes, concerns. Business models for adoption of mobile to provide connected customers, but they'll scenario in India, the challenge is major concepts: security, comfort although very likely the trend will emerging banks and fintechs will customised offerings on their also have to make sure that they and availability.

Financial Foresights 28 Financial Foresights 29 Industry Insights Industry Insights

While most banks are burdened by also be largely driven by the apps. However, digital legacy systems and processes, India cloud-first strategy. technologies are evolving at an Digital Banking - New Horizons has leapfrogged into the era of Demonetisation is pushing India unprecedented rate, and so is innovation in banking by adopting towards a cashless society, and customer adoption. To keep the latest in technology. Today's as banks prepare to deal with the pace, banks would be required in a Cash-light India digital age and hyper-connected increased influx of electronic to provide services on a gamut of environment requires banks to re- transactions, cloud will provide connected devices and imagine their business banks with the required wearables. Apps, while still AKS Namboodiri continuously, and Indian banks are elasticity to meet these demands. widely used, are not the only General Manager IT & IRMD leading the pack when it comes to channel for customer interaction. 3. Usage of Blockchains Dhanlaxmi Bank Limited transforming from digital to truly Today we have smart virtual digital. The year 2017 will be no As banks try to become more personal assistants on mobile different for the Indian banking efficient and agile to meet the phones that can engage with sector; there will be growth fuelled increasing demands of customers in a more interactive by innovative initiatives such as customers, blockchain will be manner. Unified Payments Interface (UPI) one of the enablers for re- he demonetisation of Indian The digital activity levels were low December as demonetisation 6. Banking architecture and technology. Our top picks for imagining processes. In 2017, Rupees 500 and 1000 in the initial weeks of progressed. There was a sudden simplification major technology trends that will banks will increasingly move announced on 8th Nov 2016 demonetisation as people were surge in the volume of digital T reshape Indian banking are as some projects from pilot to All of these overlying has no doubt thrown open a new busy depositing or exchanging the transactions and for many people it follows: technologies will be built on the door to the digital banking world. banned notes. But it increased from was an enforced learning of the production and leverage blockchain to automate inter- bedrock of banking architectural new technologies. 1. Open banking is the new norm organisational processes. The simplification. The new year will The following table illustrates the sudden growth Open banking-a connected recent Emirates NBD and ICICI see banks move to (Value in % y-o-y) ecosystem for financial and non- Bank partnership to launch a componentisation instead of the Oct'16 Nov'16 Dec'16 Jan'17 Feb'17 financial services with multiple blockchain pilot network for traditional monolithic NEFT 37.6 38.3 40.8 60.2 49.5 underlying service providers-is international remittances and architecture. In other words, CTS 2.9 8.6 13 19.3 0.8 the future of banking. The trade finance is a precursor for complex architecture will be IMPS 150.7 135.9 186.6 196.7 184.2 launch of UPI by the National advances in this technology. broken up into smaller bite-sized Payments Corporation of India pieces for ease of deployment 4. Artificial Intelligence (NPCI) has thrown open the and upgrade for specific Growth was good in October 2016, around on-boarding customers to change in the medium term. gates for innovation in the open Artificial intelligence (AI) has the functionalities. mainly on account of festive season. digital platforms. It was found that banking space. potential to transform both front Componentisation will not only Increasing online bank fraud has But it continued further from only 23% of people with access to office and back office operations increase agility to modernise proved that security is a vital issue, 2. Banking on the cloud first November 16 to January 17 as well. the internet do digital banking. with its self-improving selectively to keep pace with both to establish a relationship of strategy This was a positive fallout of Digital on-boarding is a revolution programs. AI has already proven current technology trends, but trust with the consumer (a security demonetisation. However, the pace in terms of customer experience, Progressive banks are already itself in providing seamless also allow for risk-mitigation of breach in a banking system can be a of growth moderated somewhat in with strong commercial making strides in cloud differentiated customer projects. With initiatives like huge blow in terms of public image February. Another fallout is the implications: the new processes adoption. Disruptive experience on digital channels, demonetisation, the Indian and business) and to face phenomenon of cash losing its have a great potential for business technologies that are changing and security measures with its government has made it clear regulatory compliance, as with -of appeal as demonstrated by a development through cross-selling the face of business-Big Data, integration within the banking that India will be yanked away course- protecting business assets. decrease of about 38% cash and up-selling techniques and blockchain, artificial intelligence infrastructure. from a cash-based economy. GST Given the nature of the on- withdrawals after December 30, above all for increasing customer's (AI), IoT-will be leveraged using rollout will give further impetus boarding processes, biometric 5. More things to bank on 2016 demonetisation is proving loyalty by implementing a cloud computing. Indian banks to the Indian economy. In 2017, security measures will be crucial in John Maynard Keynes' liquidity customer journey design that's are coming around to the idea The year 2016 was the year of banks will not only have to keep these new environments. The key preference theory wrong. attractive and comfortable. that the business agility mobile-first strategy. Indian up with the growing to successfully developing a secure Currently there are few completely provided by cloud outweighs the banks leveraged the increasing expectations of a billion Coming back to the digital banking biometric system is linked to three online on-boarding processes, concerns. Business models for adoption of mobile to provide connected customers, but they'll scenario in India, the challenge is major concepts: security, comfort although very likely the trend will emerging banks and fintechs will customised offerings on their also have to make sure that they and availability.

Financial Foresights 28 Financial Foresights 29 Industry Insights Industry Insights

are leagues ahead of the to changing consumer behaviour. worlds are starting to come emerging competition. Some have understood and acted to together. Digital experience is far adapt to this change. Amazon, more personalised. Smart Apps & Bots – The New 7. Cyber security Apple, Facebook, Google and In the summer of 2014, the noise Increasing cyber attacks and Netflix have created market value levels on "disruptions" started Face of Indian Banking online frauds gives sleepless of over US $1 trillion. They could becoming louder. Banking globally nights to several CEOs. The end do that as they leveraged change will get disrupted, said the pundits. result is going to be much more and in the process transformed The disruptions were largely in increase in information security customer expectations, created new Shantanu Sengupta four broad areas: faster loans (10 spending. operating models and blew a few Managing Director & Head - Consumer Banking Group sec instant loan plan of HDFC mature companies out of the water. DBS Bank India The world has changed and Bank); convenient payments on e- In contrast, some others such as continues to change rapidly. The commerce; mobile-to-mobile Nokia, Motorola, Borders, Barnes convergence of telecom, media and payments substituting; remote and Noble, Blockbusters and HMV computing has changed the way we advisory using analytics. All of slept! The new masters have work, play and live. Everything is them were not creating a bank, but created the ability to use the moving faster - trends, novelties, were riding "over the top" of the he digital revolution has transition from "bricks" to "clicks"? people using digital banking networks and information that they news, products, markets, etc. banking system. The customer, the come a long way since the doubled from 2011 to 2014, with create around their customers, Paradigm shifts perpetuated Linearity is dead. Markets are now payment platform, were that of the first ATM was setup in the Indonesia and Vietnam showing products and services to produce a T by technology complex, internet-driven, adaptive banks. All they created were late '80s in India. It is now time for about sevenfold growth. As per this highly personalised customer systems. The analogy of the market applications using networks and banks to evolve along their digital survey, about 40 percent of Asian experience. Historical sources of Technology has now been cast in a change is akin to a "simple- information to provide convenience journey. With slow internet-speed mass affluent customers now prefer competitive advantage - brand, new role. It is becoming an enabler pendulum" - where the movements at an attractive price point. and minimal digital penetration, online or mobile banking; among customer relationships, distribution for banks to foster stronger are predictable to a "dual- Indian consumers have long been those under 40 years of age, around channels, size and money - do not The digital banking innovations relationships with their customers. pendulum" - where patterns are comfortable standing in serpentine half prefer digital banking. Digital- hold up any more. However, it can will peak new horizons in the The mid-nineties saw a few erratic. Whilst both follow laws of queues to conduct simple everyday banking consumers number 670 hold up if you change, i.e. interface coming months helping more and pioneering global banks venture gravity, the "dual" one has the force transactions. Infact, there was a million today in Asia and are with analytics, the data and the more to bring efficiencies creating a into the virtual zone by offering of "each other" as well. The secular time, when the most efficient bank expected to become 1.7 billion by software that surround our better customer experience through products via the internet. Fast- shift in technology, mobility, social in India took two days to transfer 2020. Clearly, the numbers talking products to create a new best pricing, speed and forward to present day and you see computing and analytics have led money from one bank to another. for itself. experience. The digital and physical n banks in the UK and the US convenience.. The banking landscape has exploring "wearable banking". markedly changed since then. Over Paving the way for a digital Going beyond smart phones, banks the last decade and a half, Indian future are now looking at gadgets that can banks have rapidly adopted be simply strapped on the wrist, to While any disruptive technology technology to lower cost, improve facilitate banking transactions. So, causes turbulence, it also enables efficiency and migrate to the to answer the above question, industries to unleash their creative "digital age". The journey has been banks in India have successfully genius and serve their customers in long and arduous, but India has embarked upon their journey to a more efficient manner. Imagine made the leap from branches to digitization. the face of the banking industry in a ATMs to transacting online to time when every adult Indian has mobile banking. Opening bank A *survey conducted by McKinsey an Aadhaar number (an online accounts, transferring money, and Company found that across biometric identity), a smart phone making payments and e-commerce ASEAN (Singapore, Malaysia, AKS Namboodiri, General Manager (IT & IRMD), Dhanlaxmi Bank Limited. Namboodiri has over 30 years of experience in Banking IT, and a bank account. It doesn't take transactions can now all be done Brunei, Cambodia, Indonesia, Laos, having worked with development, implementation and maintenance of several Banking systems. His career in IT started as the IT Manager for a genius to connect the dots. A with the click of a button. However, Myanmar, Philippines, Thailand Canara Bank in India. Subsequently he worked as Project Manager in Misys where the primary responsibility was to undertake enhancements conflation of these factors can of the core banking product 'Bankmaster'. Later on he worked as a Consultant for Saudi Hollandi Bank, Riyadh where he was responsible for has India successfully made the and Vietnam), the proportion of implementation and maintenance of various Retail Lending systems including Credit Card system. Subsequently for over 11 years he worked as a Senior Consultant with Tata Consultancy Services where he worked on several projects for consulting and implementation. Currently he Source: is working as General Manager at Dhanlaxmi Bank where IT and Risk Management departments are over seen by him. * McKinsey & Company report titled "Digital Banking in ASEAN: Increasing Consumer Sophistication and Openness".

Financial Foresights 30 Financial Foresights 31 Industry Insights Industry Insights

are leagues ahead of the to changing consumer behaviour. worlds are starting to come emerging competition. Some have understood and acted to together. Digital experience is far adapt to this change. Amazon, more personalised. Smart Apps & Bots – The New 7. Cyber security Apple, Facebook, Google and In the summer of 2014, the noise Increasing cyber attacks and Netflix have created market value levels on "disruptions" started Face of Indian Banking online frauds gives sleepless of over US $1 trillion. They could becoming louder. Banking globally nights to several CEOs. The end do that as they leveraged change will get disrupted, said the pundits. result is going to be much more and in the process transformed The disruptions were largely in increase in information security customer expectations, created new Shantanu Sengupta four broad areas: faster loans (10 spending. operating models and blew a few Managing Director & Head - Consumer Banking Group sec instant loan plan of HDFC mature companies out of the water. DBS Bank India The world has changed and Bank); convenient payments on e- In contrast, some others such as continues to change rapidly. The commerce; mobile-to-mobile Nokia, Motorola, Borders, Barnes convergence of telecom, media and payments substituting; remote and Noble, Blockbusters and HMV computing has changed the way we advisory using analytics. All of slept! The new masters have work, play and live. Everything is them were not creating a bank, but created the ability to use the moving faster - trends, novelties, were riding "over the top" of the he digital revolution has transition from "bricks" to "clicks"? people using digital banking networks and information that they news, products, markets, etc. banking system. The customer, the come a long way since the doubled from 2011 to 2014, with create around their customers, Paradigm shifts perpetuated Linearity is dead. Markets are now payment platform, were that of the first ATM was setup in the Indonesia and Vietnam showing products and services to produce a T by technology complex, internet-driven, adaptive banks. All they created were late '80s in India. It is now time for about sevenfold growth. As per this highly personalised customer systems. The analogy of the market applications using networks and banks to evolve along their digital survey, about 40 percent of Asian experience. Historical sources of Technology has now been cast in a change is akin to a "simple- information to provide convenience journey. With slow internet-speed mass affluent customers now prefer competitive advantage - brand, new role. It is becoming an enabler pendulum" - where the movements at an attractive price point. and minimal digital penetration, online or mobile banking; among customer relationships, distribution for banks to foster stronger are predictable to a "dual- Indian consumers have long been those under 40 years of age, around channels, size and money - do not The digital banking innovations relationships with their customers. pendulum" - where patterns are comfortable standing in serpentine half prefer digital banking. Digital- hold up any more. However, it can will peak new horizons in the The mid-nineties saw a few erratic. Whilst both follow laws of queues to conduct simple everyday banking consumers number 670 hold up if you change, i.e. interface coming months helping more and pioneering global banks venture gravity, the "dual" one has the force transactions. Infact, there was a million today in Asia and are with analytics, the data and the more to bring efficiencies creating a into the virtual zone by offering of "each other" as well. The secular time, when the most efficient bank expected to become 1.7 billion by software that surround our better customer experience through products via the internet. Fast- shift in technology, mobility, social in India took two days to transfer 2020. Clearly, the numbers talking products to create a new best pricing, speed and forward to present day and you see computing and analytics have led money from one bank to another. for itself. experience. The digital and physical n banks in the UK and the US convenience.. The banking landscape has exploring "wearable banking". markedly changed since then. Over Paving the way for a digital Going beyond smart phones, banks the last decade and a half, Indian future are now looking at gadgets that can banks have rapidly adopted be simply strapped on the wrist, to While any disruptive technology technology to lower cost, improve facilitate banking transactions. So, causes turbulence, it also enables efficiency and migrate to the to answer the above question, industries to unleash their creative "digital age". The journey has been banks in India have successfully genius and serve their customers in long and arduous, but India has embarked upon their journey to a more efficient manner. Imagine made the leap from branches to digitization. the face of the banking industry in a ATMs to transacting online to time when every adult Indian has mobile banking. Opening bank A *survey conducted by McKinsey an Aadhaar number (an online accounts, transferring money, and Company found that across biometric identity), a smart phone making payments and e-commerce ASEAN (Singapore, Malaysia, AKS Namboodiri, General Manager (IT & IRMD), Dhanlaxmi Bank Limited. Namboodiri has over 30 years of experience in Banking IT, and a bank account. It doesn't take transactions can now all be done Brunei, Cambodia, Indonesia, Laos, having worked with development, implementation and maintenance of several Banking systems. His career in IT started as the IT Manager for a genius to connect the dots. A with the click of a button. However, Myanmar, Philippines, Thailand Canara Bank in India. Subsequently he worked as Project Manager in Misys where the primary responsibility was to undertake enhancements conflation of these factors can of the core banking product 'Bankmaster'. Later on he worked as a Consultant for Saudi Hollandi Bank, Riyadh where he was responsible for has India successfully made the and Vietnam), the proportion of implementation and maintenance of various Retail Lending systems including Credit Card system. Subsequently for over 11 years he worked as a Senior Consultant with Tata Consultancy Services where he worked on several projects for consulting and implementation. Currently he Source: is working as General Manager at Dhanlaxmi Bank where IT and Risk Management departments are over seen by him. * McKinsey & Company report titled "Digital Banking in ASEAN: Increasing Consumer Sophistication and Openness".

Financial Foresights 30 Financial Foresights 31 Industry Insights Industry Insights

herald a new era for not only Indian growth in internet users. The era. Key among them is the creation of today and enable consumers to kind of solutions by a bank would aspect of their lives. banking but also for the millions of country has over 350 million of a strong ecosystem designed to "live more, bank less". These have at one time been considered Banking at an inflexion customers that the industry serves. internet users, and is second only to enable digital banking. Among include DBS PayLah!, a mobile absolutely incredible. However, The last few years have seen an China in terms of the largest other thing, this includes the rapid wallet for peer-to-peer payments digitally savvy consumers of today point introduced in May 2014; DBS SMS exponential growth in the usage of internet user rate. However, increase in internet and smartphone demand innovation and it is the Banks need to be porous to new Banking, which allows users to smartphones, which are expected to according to data as on August adoption. As industry, government need of the hour for banks to stay ideas and nimble enough to perform simple banking reach a penetration of 700 million 2016, only 53 per cent of the and regulatory bodies join hands, a one step ahead. implement these ideas. Technology by 2020. **Currently over 1 billion country's population had bank wave of innovation brought about transactions, introduced in October With this in mind, last year DBS is infiltrating every aspect of our residents have an Aadhaar number accounts as against 79 per cent in by technology will fundamentally 2014; and DBS FasTrack, an app Bank launched digibank, the first lives, making everything from of which already over 280 million China and more than 80 per cent in transform the banking industry. introduced in September 2015 that digital-only bank in India. Its users transacting to payment of bills to Indian residents have an Aadhaar- the U.K., the U.S. and Germany. Data will soon become king and the provides seamless ordering and can open an account at any one of filing tax, easier and more efficient. linked bank account and around 1 ****Post the demonetisation banking industry would do well to payments solutions to merchants. A 500 selected cafes using their In order to make this leap into billion direct benefit transfer (DBT) exercise, the total number of credit leverage upon this asset. Reduction great example of our efforts to fingerprint and Aadhaar number. India's digital future, banks, fintech transactions have happened, whose card transactions registered an in transaction fees in return for this espouse digitization is the Home digibank offers 24-hour customer companies, and infrastructure value is in the billions of dollars. almost 25% increase from 895 lakh valuable data will accelerate the Connect mobile app that allows a service via an artificial-intelligence- companies will have to collaborate transactions in October to 980 lakh transition to a cashless economy. house hunter in Singapore to Additionally, the government driven virtual assistant and to give shape to the future. transactions in November and Banking models will change from simply hold a smartphone up to promoting financial inclusion promises its customers a simpler, Stakeholders will have to make subsequently settled at 1,118 lakh high -cost, high-value, high-fees scan a street and recall the latest through the Jhan Dhan Yojana has faster and smarter banking consumers their priority and invest transactions in December. Value of and low-volume to high-volume, transacted prices of nearby led to over 200 million new bank experience. Indian officials hailed heavily in user experience and the card transactions declined by 40%, low-value, low-cost, and no fees. properties on a map. The app also accounts being opened, with the its debut as the "WhatsApp customer journey. The banking during the time period. However, This will not only lead to a sharp lets the user evaluate nearby government aiming to ensure that moment of banking". Its growing industry forms the fulcrum of any data as per the Reserve Bank of rise in accessibility and amenities, calculate mortgage 98% of households in the country acceptance indicates a rising trend economy, and thus should be at the India (RBI) indicates a sharp change affordability, it will also ensure that repayments or connect to a loan hold a bank account. Giving a among consumers to digitize every forefront of this digital evolution. n in the way Indian people are there are no unbanked Indians, in officer right then and there. Such thrust to an increasingly conducive migrating to alternative methods of the future. policy environment is the "India digital payments like m-wallets and Stack", a digital infrastructure UPI (Unified Payments Interface). New age initiatives conceptualized by the think-tank While the total value of transactions iSpirit and created over the last 5-6 With an emphasis on making over PoS (point of sales) has shot years in collaboration with the banking joyful for our consumers, up by 41%, value of debit card Government of India. The "India DBS is fast blurring the lines transactions saw more than a 100% Stack" is the largest Application between being a banking entity and increase. From October 2016 to Programming Interface (API) on the a technology company. DBS in Asia December 2016, number of planet whose main aim is to propel is committed to creating an transactions using digital payment India into a paperless and cashless ecosystem which can generate solutions (including digital wallets, existence. The possibilities are handsome digital dividends. PPI cards and paper vouchers) shot infinite. Innovative solutions launched by up by more than 105% while the the bank across Asia, go beyond Numbers tell a compelling average value of such transactions just transacting on a digital story increased by 2%. platform. The bank has launched a A host of factors have combined to number of apps which are designed ***Latest statistics show that India Shantanu Sengupta, Managing Director & Head - Consumer Banking Group, DBS Bank India accelerate the advent of the digital to connect with the digital natives witnessed a remarkable 32% annual Shantanu Sengupta joined DBS Bank India in December 2015 and is the Managing Director and Head of Consumer Banking Group for DBS Source: India. ** Data on smartphone penetration, Aadhar numbers, bank accounts and DBT transactions sourced from Mr. Nandan Nilekani's speech and Shantanu has extensive experience in Consumer, Commercial Banking and Wealth Management, having spent nearly two decades with presentations. several leading international banks like The Royal Bank of Scotland N.V. (RBS), ABN Amro Bank, Citibank and Bank of America. *** http://www.thehindu.com/news/national/karnataka/%E2%80%98Bank-account-penetration-set-to-increase-in- country%E2%80%99/article14578561.ece & http://www.gbim.com/demonetisation-affects-digital-economy-india/ Prior to joining DBS, Shantanu worked as the Head of Retail Banking India for RBS, where he was responsible for spearheading the digital **** Data on post demonetisation transactions sourced from https://yourstory.com/2017/02/digital-india-post-demonetisation/ transformation of their Retail Bank.

Financial Foresights 32 Financial Foresights 33 Industry Insights Industry Insights

herald a new era for not only Indian growth in internet users. The era. Key among them is the creation of today and enable consumers to kind of solutions by a bank would aspect of their lives. banking but also for the millions of country has over 350 million of a strong ecosystem designed to "live more, bank less". These have at one time been considered Banking at an inflexion customers that the industry serves. internet users, and is second only to enable digital banking. Among include DBS PayLah!, a mobile absolutely incredible. However, The last few years have seen an China in terms of the largest other thing, this includes the rapid wallet for peer-to-peer payments digitally savvy consumers of today point introduced in May 2014; DBS SMS exponential growth in the usage of internet user rate. However, increase in internet and smartphone demand innovation and it is the Banks need to be porous to new Banking, which allows users to smartphones, which are expected to according to data as on August adoption. As industry, government need of the hour for banks to stay ideas and nimble enough to perform simple banking reach a penetration of 700 million 2016, only 53 per cent of the and regulatory bodies join hands, a one step ahead. implement these ideas. Technology by 2020. **Currently over 1 billion country's population had bank wave of innovation brought about transactions, introduced in October With this in mind, last year DBS is infiltrating every aspect of our residents have an Aadhaar number accounts as against 79 per cent in by technology will fundamentally 2014; and DBS FasTrack, an app Bank launched digibank, the first lives, making everything from of which already over 280 million China and more than 80 per cent in transform the banking industry. introduced in September 2015 that digital-only bank in India. Its users transacting to payment of bills to Indian residents have an Aadhaar- the U.K., the U.S. and Germany. Data will soon become king and the provides seamless ordering and can open an account at any one of filing tax, easier and more efficient. linked bank account and around 1 ****Post the demonetisation banking industry would do well to payments solutions to merchants. A 500 selected cafes using their In order to make this leap into billion direct benefit transfer (DBT) exercise, the total number of credit leverage upon this asset. Reduction great example of our efforts to fingerprint and Aadhaar number. India's digital future, banks, fintech transactions have happened, whose card transactions registered an in transaction fees in return for this espouse digitization is the Home digibank offers 24-hour customer companies, and infrastructure value is in the billions of dollars. almost 25% increase from 895 lakh valuable data will accelerate the Connect mobile app that allows a service via an artificial-intelligence- companies will have to collaborate transactions in October to 980 lakh transition to a cashless economy. house hunter in Singapore to Additionally, the government driven virtual assistant and to give shape to the future. transactions in November and Banking models will change from simply hold a smartphone up to promoting financial inclusion promises its customers a simpler, Stakeholders will have to make subsequently settled at 1,118 lakh high -cost, high-value, high-fees scan a street and recall the latest through the Jhan Dhan Yojana has faster and smarter banking consumers their priority and invest transactions in December. Value of and low-volume to high-volume, transacted prices of nearby led to over 200 million new bank experience. Indian officials hailed heavily in user experience and the card transactions declined by 40%, low-value, low-cost, and no fees. properties on a map. The app also accounts being opened, with the its debut as the "WhatsApp customer journey. The banking during the time period. However, This will not only lead to a sharp lets the user evaluate nearby government aiming to ensure that moment of banking". Its growing industry forms the fulcrum of any data as per the Reserve Bank of rise in accessibility and amenities, calculate mortgage 98% of households in the country acceptance indicates a rising trend economy, and thus should be at the India (RBI) indicates a sharp change affordability, it will also ensure that repayments or connect to a loan hold a bank account. Giving a among consumers to digitize every forefront of this digital evolution. n in the way Indian people are there are no unbanked Indians, in officer right then and there. Such thrust to an increasingly conducive migrating to alternative methods of the future. policy environment is the "India digital payments like m-wallets and Stack", a digital infrastructure UPI (Unified Payments Interface). New age initiatives conceptualized by the think-tank While the total value of transactions iSpirit and created over the last 5-6 With an emphasis on making over PoS (point of sales) has shot years in collaboration with the banking joyful for our consumers, up by 41%, value of debit card Government of India. The "India DBS is fast blurring the lines transactions saw more than a 100% Stack" is the largest Application between being a banking entity and increase. From October 2016 to Programming Interface (API) on the a technology company. DBS in Asia December 2016, number of planet whose main aim is to propel is committed to creating an transactions using digital payment India into a paperless and cashless ecosystem which can generate solutions (including digital wallets, existence. The possibilities are handsome digital dividends. PPI cards and paper vouchers) shot infinite. Innovative solutions launched by up by more than 105% while the the bank across Asia, go beyond Numbers tell a compelling average value of such transactions just transacting on a digital story increased by 2%. platform. The bank has launched a A host of factors have combined to number of apps which are designed ***Latest statistics show that India Shantanu Sengupta, Managing Director & Head - Consumer Banking Group, DBS Bank India accelerate the advent of the digital to connect with the digital natives witnessed a remarkable 32% annual Shantanu Sengupta joined DBS Bank India in December 2015 and is the Managing Director and Head of Consumer Banking Group for DBS Source: India. ** Data on smartphone penetration, Aadhar numbers, bank accounts and DBT transactions sourced from Mr. Nandan Nilekani's speech and Shantanu has extensive experience in Consumer, Commercial Banking and Wealth Management, having spent nearly two decades with presentations. several leading international banks like The Royal Bank of Scotland N.V. (RBS), ABN Amro Bank, Citibank and Bank of America. *** http://www.thehindu.com/news/national/karnataka/%E2%80%98Bank-account-penetration-set-to-increase-in- country%E2%80%99/article14578561.ece & http://www.gbim.com/demonetisation-affects-digital-economy-india/ Prior to joining DBS, Shantanu worked as the Head of Retail Banking India for RBS, where he was responsible for spearheading the digital **** Data on post demonetisation transactions sourced from https://yourstory.com/2017/02/digital-india-post-demonetisation/ transformation of their Retail Bank.

Financial Foresights 32 Financial Foresights 33 Industry Insights Industry Insights

consent layer, this information can with any other country in the commitment to drive this through be shared by users for initiating any world. This is also instrumental in campaigns, education and New Horizons in Less Cash India transactions in the digital lowering transaction cost for incentives makes it imperative for ecosystem. merchants and consumers. This us to turn it into a movement. creates significant opportunity for Money lying in a bank account can Payment Infrastructure banks and fintech to build payment be used more efficiently by holders and transaction experiences at low as it earns interest and can be In the last couple of years, there has cost. deployed more meaningfully been massive infrastructure roll out Deepak Sharma unlike idle cash, which depreciates on the payment front, more so in GST & FASTag with inflation. This change in Chief Digital Officer the last six months. In the first attitude can help kick in the cycle of Kotak Mahindra Bank wave, Jan Dhan provided access to Rollout of GST and Fastag are two growth in the economy. a bank account to every citizen. major initiatives which will have a Subsequently, the Government to huge impact on transparency in Digital transactions, GST and citizen payment under the Direct taxation, efficiency in movement of income tax data can help banks and Benefit Transfer (DBT) scheme goods and seamless payments. This financial institutions build flow provided credit through the bank will also generate enormous based lending models. Thereby, India Today create multitude of opportunities are the fastest growing smartphone account. Similarly, state and central amount of data on the fly and will this can provide access to credit to a for citizens and all sectors of the market in the world. As a mobile- governments started driving e- be invaluable for merchants and large numbers of individuals & As India stands on the cusp of a economy. first and mobile only country, more governance and tax payments enterprises. enterprises who were either denied digital revolution which has no products and services are designed through the electronic platform. credit or had to borrow money parallel in size and scale anywhere Railroads of Digital India for 4-5 inch screens. This has This has created a cashless Imperative for us through informal channels at very in the world, it is important for us created opportunities for device government payment ecosystem. high rates. It will not only bring to reflect on its uniqueness and The last few years have witnessed a manufacturers, distributors, content In the past, ports, highways, rail fiscal discipline but also financial benefits. As the second most massive roll out of rail roads developers, app developers, mobile On the consumer side, while ATM roads and power sector were discipline in the user. Further, data populous country with diversity supporting a digital & less cash security firms, digital marketing & debit cards were the first wave of referred to as infrastructure but will create new sources of trust. across regions, languages, economy. Some of the major levers firms & other businesses which are electronic payments, the idea of a digital rail roads rolled out in the Less cash India through digital education, socio-economic of change are: smart phone centric. less cash India was at cross last few years have created the railroads will also drive innovation background and rural/urban purposes with ATM usage. Point of most significant, impactful and in payments, transactions, digital phenomenon, India is truly a Data Identity & Access sale (POS) terminals were a unique infra opportunity for every services, cyber security, merchant rainbow country. Complexity also substitute to drive less cash; segment. Cash has a significant and enterprise service space. presents challenges of proportion Roll out of 3G/4G networks by India Stack which comprises however, the cost of terminals, cost, often not realized by the user. Fintech and technology companies which are unmatched globally. telecom operators has brought Aadhaar, Digital locker and e-sign number of active terminals and the By certain estimates, cost of cash in access to data and information at has been a game changer. Bank active card base was a deterrent to terms of printing, storing, as well as banks will leverage this Access to financial services, transfer the fingertips of every citizen. accounts, Pan card, tax records, faster adoption. The roll out of distributing, collecting and opportunity to create new business of government benefits directly to Connectivity at affordable cost has railway ticketing and gradually Rupay, Bharat Billpay System, inefficient utilization is 1.7% of models, reaching new customer citizens and a transparent taxation propelled consumption of products almost everything will get linked to IMPS, UPI, Bhim App, Bharat QR GDP, and as we move towards less segments and serving existing system are some of the major and services which can be accessed, a single document - Aadhaar. It will code, Aadhaar Pay & NACH has cash, this saving can accrue to the customers more efficiently. We are priorities of the government. This consumed or initiated over such become the backbone of identity created massive digital payment economy. Government's at a sweet spot and the journey n can be achieved in a growing networks. This comprises citizen and access management, thereby infrastructure which has no match looks exciting from here onwards. economy where opportunity and service, banking, e-commerce, bringing every citizen in the formal access to credit is available to all weather and market information, economy. This would create a Disclaimer: The views expressed in the article are personal and do not reect the views of Kotak Mahindra Bank Ltd. segments across rural and urban payments and e-tax, media and single source of information and India. messaging services amongst several repository for all financial and non- Deepak Sharma, Chief Digital Officer, Kotak Mahindra Bank Ltd.: global first products like Jifi, Hashtag banking, Bharat Banking, M-Store others. financial transactions. Similarly, Access to capital is a critical aspect & Kaypay. Deepak believes in constant innovation and focuses on building business models which are customer centric and disruptive. access to all documents like of entrepreneurial drive which can Deepak has worked across various international markets and brings global perspective to his business. Prior to this, he was responsible for Device employment and education setting up the Bank’s highly successful Non Resident Indian (NRI) & International Remittance business. Deepak also played a key role in encourage self-employment and records, property, insurance, motor launching the Bank’s affluent banking programme - Privy League. growth of small and medium India has crossed the 350 million vehicle, driving license, passport With over 22 years of experience, Deepak’s professional tenure spans across the banking, telecom and service verticals. Prior to joining Kotak, enterprises. As India has embarked mark of smartphone users, and and health records can be stored he was part of the leadership team of Consumer Banking at Standard Chartered bank from 2003 to 2008. As National Head for Corporate towards a less cash economy on the Business, he was responsible for building the corporate payroll and Wealth Management business. continues to add 5-6 million and accessed through digital locker. back of digital adoption, it will incremental users per month. We With Aadhaar based e-sign and Deepak has completed an advanced programme in Strategy from IIM Calcutta & Lead Certified in Corporate Innovation from Stanford GSB. He is also part of various trade and business committees and writes on subjects related to business.

Financial Foresights 34 Financial Foresights 35 Industry Insights Industry Insights

consent layer, this information can with any other country in the commitment to drive this through be shared by users for initiating any world. This is also instrumental in campaigns, education and New Horizons in Less Cash India transactions in the digital lowering transaction cost for incentives makes it imperative for ecosystem. merchants and consumers. This us to turn it into a movement. creates significant opportunity for Money lying in a bank account can Payment Infrastructure banks and fintech to build payment be used more efficiently by holders and transaction experiences at low as it earns interest and can be In the last couple of years, there has cost. deployed more meaningfully been massive infrastructure roll out Deepak Sharma unlike idle cash, which depreciates on the payment front, more so in GST & FASTag with inflation. This change in Chief Digital Officer the last six months. In the first attitude can help kick in the cycle of Kotak Mahindra Bank wave, Jan Dhan provided access to Rollout of GST and Fastag are two growth in the economy. a bank account to every citizen. major initiatives which will have a Subsequently, the Government to huge impact on transparency in Digital transactions, GST and citizen payment under the Direct taxation, efficiency in movement of income tax data can help banks and Benefit Transfer (DBT) scheme goods and seamless payments. This financial institutions build flow provided credit through the bank will also generate enormous based lending models. Thereby, India Today create multitude of opportunities are the fastest growing smartphone account. Similarly, state and central amount of data on the fly and will this can provide access to credit to a for citizens and all sectors of the market in the world. As a mobile- governments started driving e- be invaluable for merchants and large numbers of individuals & As India stands on the cusp of a economy. first and mobile only country, more governance and tax payments enterprises. enterprises who were either denied digital revolution which has no products and services are designed through the electronic platform. credit or had to borrow money parallel in size and scale anywhere Railroads of Digital India for 4-5 inch screens. This has This has created a cashless Imperative for us through informal channels at very in the world, it is important for us created opportunities for device government payment ecosystem. high rates. It will not only bring to reflect on its uniqueness and The last few years have witnessed a manufacturers, distributors, content In the past, ports, highways, rail fiscal discipline but also financial benefits. As the second most massive roll out of rail roads developers, app developers, mobile On the consumer side, while ATM roads and power sector were discipline in the user. Further, data populous country with diversity supporting a digital & less cash security firms, digital marketing & debit cards were the first wave of referred to as infrastructure but will create new sources of trust. across regions, languages, economy. Some of the major levers firms & other businesses which are electronic payments, the idea of a digital rail roads rolled out in the Less cash India through digital education, socio-economic of change are: smart phone centric. less cash India was at cross last few years have created the railroads will also drive innovation background and rural/urban purposes with ATM usage. Point of most significant, impactful and in payments, transactions, digital phenomenon, India is truly a Data Identity & Access sale (POS) terminals were a unique infra opportunity for every services, cyber security, merchant rainbow country. Complexity also substitute to drive less cash; segment. Cash has a significant and enterprise service space. presents challenges of proportion Roll out of 3G/4G networks by India Stack which comprises however, the cost of terminals, cost, often not realized by the user. Fintech and technology companies which are unmatched globally. telecom operators has brought Aadhaar, Digital locker and e-sign number of active terminals and the By certain estimates, cost of cash in access to data and information at has been a game changer. Bank active card base was a deterrent to terms of printing, storing, as well as banks will leverage this Access to financial services, transfer the fingertips of every citizen. accounts, Pan card, tax records, faster adoption. The roll out of distributing, collecting and opportunity to create new business of government benefits directly to Connectivity at affordable cost has railway ticketing and gradually Rupay, Bharat Billpay System, inefficient utilization is 1.7% of models, reaching new customer citizens and a transparent taxation propelled consumption of products almost everything will get linked to IMPS, UPI, Bhim App, Bharat QR GDP, and as we move towards less segments and serving existing system are some of the major and services which can be accessed, a single document - Aadhaar. It will code, Aadhaar Pay & NACH has cash, this saving can accrue to the customers more efficiently. We are priorities of the government. This consumed or initiated over such become the backbone of identity created massive digital payment economy. Government's at a sweet spot and the journey n can be achieved in a growing networks. This comprises citizen and access management, thereby infrastructure which has no match looks exciting from here onwards. economy where opportunity and service, banking, e-commerce, bringing every citizen in the formal access to credit is available to all weather and market information, economy. This would create a Disclaimer: The views expressed in the article are personal and do not reect the views of Kotak Mahindra Bank Ltd. segments across rural and urban payments and e-tax, media and single source of information and India. messaging services amongst several repository for all financial and non- Deepak Sharma, Chief Digital Officer, Kotak Mahindra Bank Ltd.: global first products like Jifi, Hashtag banking, Bharat Banking, M-Store others. financial transactions. Similarly, Access to capital is a critical aspect & Kaypay. Deepak believes in constant innovation and focuses on building business models which are customer centric and disruptive. access to all documents like of entrepreneurial drive which can Deepak has worked across various international markets and brings global perspective to his business. Prior to this, he was responsible for Device employment and education setting up the Bank’s highly successful Non Resident Indian (NRI) & International Remittance business. Deepak also played a key role in encourage self-employment and records, property, insurance, motor launching the Bank’s affluent banking programme - Privy League. growth of small and medium India has crossed the 350 million vehicle, driving license, passport With over 22 years of experience, Deepak’s professional tenure spans across the banking, telecom and service verticals. Prior to joining Kotak, enterprises. As India has embarked mark of smartphone users, and and health records can be stored he was part of the leadership team of Consumer Banking at Standard Chartered bank from 2003 to 2008. As National Head for Corporate towards a less cash economy on the Business, he was responsible for building the corporate payroll and Wealth Management business. continues to add 5-6 million and accessed through digital locker. back of digital adoption, it will incremental users per month. We With Aadhaar based e-sign and Deepak has completed an advanced programme in Strategy from IIM Calcutta & Lead Certified in Corporate Innovation from Stanford GSB. He is also part of various trade and business committees and writes on subjects related to business.

Financial Foresights 34 Financial Foresights 35 Industry Insights Industry Insights

Channel mean for banks to deliver? opening, it can be done as a connected enterprises and are Banks have to start thinking of multi-step process using only the willing to participate in a shared Digital Banking – The Holy Grail putting together a robust channel e-KYC step, to be done by the economic structure. As fintechs strategy for the same. Channels are customer and the rest by the progress, innovating on the edge, for the Banking Industry not about mobile and internet branch this need has become that much alone; channels include the assisted more urgent. India is a country l In case of customer segments that channels, SMS-based banking, where people tend to demand more prefer assisted account opening ATM channels, NUUP channel and for less. There is no better way than but cannot access a branch, it can Sujatha Mohan many more. For customers, so to provide greater nimbleness to be a tab-based account opening Head, Digital & New Initiatives many channels can be confusing, partners and corporates to drive done by a BC representative and RBL Bank more so if the processes and their customer needs by ensuring the e-KYC step cane be done by products are not well integrated all needs of their customers the customer. across channels and the banks are including banking processes are not able to provide a seamless and All of the above can follow the well integrated. smooth process that interplays same steps, with each step in the When we look at traditional value between channels based on specific process being managed by one or ovember 8, 2016, created segments, Retail and Corporates, ongoing thrust by the Indian chains, it is obvious that the needs of the customer segment. many participants involved. a tectonic shift for Indian better. Analytics at the base of all government is laying the extreme ends of the chains i.e. the Digital is nothing but smoothened industry by creating a actions is the key foundation for a larger consumer, is getting digitised N processes that allow customers to There are a lot of changes that vacuum in cash and getting people consumption of mobile banks have to make to their internal rapidly. As the consumers get to adapt to a cashless mode of Building Omni-channel transactions. opt for a channel of their choice and systems but this is the real value of digitised, it's imperative that the living. There were many theories at the same time gives frictionless or Optic-Channel Mobility vs. the Web Channel a truly digital bank. rest of the chains also get digitised around the success of this move. experience and instant gratification. Interface discussion has been building for to deliver greater value to the But the idea is not to theorise on The other aspect that is to be some time now. India has been To give an example, one of the most consumer and keep him engaged. It this subject but to analyse how this Building a channel experience that guarded against is the current pushing the threshold, especially onerous processes that banks have is really interesting to see divergent has created a changed environment gets customers to approach the euphoria around digital. Digital with RBI taking the lead in pushing is the entire customer onboarding and varied consumer needs basis in the industry. bank for all its needs requires a almost always gets centered on the mobile banking agenda. The process and the step that seems to the industry vertical of the huge amount of design thinking payments. In truth, payments This one event has definitely got speed of mobile and data take the whole experience to an corporate, SME or Fintech. Fact is and user experience management. deliver a 'Less Cash' economy. the CXOs thinking about the penetration is high. absolute low is the KYC process. that these varied needs can be met Channels of engagement are There is a lot to be gained by possibility of removing cash from Consequentially, the adoption of Thanks to the arrival of the India using a combination of well- changing and the channel that is focusing on every customer the ecosystem and innovate low- mobile banking is on the rise and Stack, the customer identification designed digital assets. being used cannot be thought of in process and consequentially the interaction with a bank and cost models for banking. this is also aided by an economy The API Banking/Open Banking a very uni-dimensional or uni- KYC process has largely been ensuring that every interaction is which has a very large youth strategy, which banks such as RBL Digital Banking can be broken into channel manner. What is required simplified. And yet, banks struggle sieved through an Opti-Channel population. According to reports, Bank and Yes Bank are following, is three key areas of development: for great customer experience is to to provide an integrated experience lens so that the customer India ranks 4th amongst G7 nations offering enterprises an opportunity think of every micro experience for want of systems that are loosely experiences huge comfort in getting l Building the Omni-Channel and with respect to mobile banking to offer tailor-made solutions for that a customer has to engage with coupled and yet give an integrated his banking done. pushing the seams to develop the adoption. their customers and also innovate the bank and ensure that the experience externally. Opti-Channel Interface experience is well thought through. Smartphone penetration is Building the base for with internal processes to bring in Let's take the e-KYC based account better efficiencies. The entire l Building the base for connected currently pegged at around 50 per connected enterprises What is driving the need for this opening and see the possible flows: journey of connected enterprises Enterprises: This falls in the cent of the Indian population. change is the changing topography As technology advances, rests on the tenet that as consumers realm of Transaction Banking, Given this, having an integrated l In case of the youth segment, of the mobile penetration. The enterprises have started to connect digitise, all kinds of enterprises are Open Bank Architecture and Omni-Channel story weaving an end-to-end account opening can number of mobile internet users is through seamless integrations. A under stress to make their customer seamless experiences for Opti-Channel based on customer be digitised, as is the case with expected to rise to 300 million by crying need for all kinds of engagement stronger; and all areas businesses to connect their clients segment/location of transaction is a RBL Bank's Abacus product 2017, as against 159 million as of innovations lies on the base that necessity. where customer engagement l Building a data-oriented culture January 2017, as per a report by l In case of customer segments enterprises are willing to touches a banking transaction, the to service the two broad IAMAI and KPMG. So also the What does Omni-Channel to Opti- which prefer assisted account participate in a larger web of flow of transaction and information

Financial Foresights 36 Financial Foresights 37 Industry Insights Industry Insights

Channel mean for banks to deliver? opening, it can be done as a connected enterprises and are Banks have to start thinking of multi-step process using only the willing to participate in a shared Digital Banking – The Holy Grail putting together a robust channel e-KYC step, to be done by the economic structure. As fintechs strategy for the same. Channels are customer and the rest by the progress, innovating on the edge, for the Banking Industry not about mobile and internet branch this need has become that much alone; channels include the assisted more urgent. India is a country l In case of customer segments that channels, SMS-based banking, where people tend to demand more prefer assisted account opening ATM channels, NUUP channel and for less. There is no better way than but cannot access a branch, it can Sujatha Mohan many more. For customers, so to provide greater nimbleness to be a tab-based account opening Head, Digital & New Initiatives many channels can be confusing, partners and corporates to drive done by a BC representative and RBL Bank more so if the processes and their customer needs by ensuring the e-KYC step cane be done by products are not well integrated all needs of their customers the customer. across channels and the banks are including banking processes are not able to provide a seamless and All of the above can follow the well integrated. smooth process that interplays same steps, with each step in the When we look at traditional value between channels based on specific process being managed by one or ovember 8, 2016, created segments, Retail and Corporates, ongoing thrust by the Indian chains, it is obvious that the needs of the customer segment. many participants involved. a tectonic shift for Indian better. Analytics at the base of all government is laying the extreme ends of the chains i.e. the Digital is nothing but smoothened industry by creating a actions is the key foundation for a larger consumer, is getting digitised N processes that allow customers to There are a lot of changes that vacuum in cash and getting people consumption of mobile banks have to make to their internal rapidly. As the consumers get to adapt to a cashless mode of Building Omni-channel transactions. opt for a channel of their choice and systems but this is the real value of digitised, it's imperative that the living. There were many theories at the same time gives frictionless or Optic-Channel Mobility vs. the Web Channel a truly digital bank. rest of the chains also get digitised around the success of this move. experience and instant gratification. Interface discussion has been building for to deliver greater value to the But the idea is not to theorise on The other aspect that is to be some time now. India has been To give an example, one of the most consumer and keep him engaged. It this subject but to analyse how this Building a channel experience that guarded against is the current pushing the threshold, especially onerous processes that banks have is really interesting to see divergent has created a changed environment gets customers to approach the euphoria around digital. Digital with RBI taking the lead in pushing is the entire customer onboarding and varied consumer needs basis in the industry. bank for all its needs requires a almost always gets centered on the mobile banking agenda. The process and the step that seems to the industry vertical of the huge amount of design thinking payments. In truth, payments This one event has definitely got speed of mobile and data take the whole experience to an corporate, SME or Fintech. Fact is and user experience management. deliver a 'Less Cash' economy. the CXOs thinking about the penetration is high. absolute low is the KYC process. that these varied needs can be met Channels of engagement are There is a lot to be gained by possibility of removing cash from Consequentially, the adoption of Thanks to the arrival of the India using a combination of well- changing and the channel that is focusing on every customer the ecosystem and innovate low- mobile banking is on the rise and Stack, the customer identification designed digital assets. being used cannot be thought of in process and consequentially the interaction with a bank and cost models for banking. this is also aided by an economy The API Banking/Open Banking a very uni-dimensional or uni- KYC process has largely been ensuring that every interaction is which has a very large youth strategy, which banks such as RBL Digital Banking can be broken into channel manner. What is required simplified. And yet, banks struggle sieved through an Opti-Channel population. According to reports, Bank and Yes Bank are following, is three key areas of development: for great customer experience is to to provide an integrated experience lens so that the customer India ranks 4th amongst G7 nations offering enterprises an opportunity think of every micro experience for want of systems that are loosely experiences huge comfort in getting l Building the Omni-Channel and with respect to mobile banking to offer tailor-made solutions for that a customer has to engage with coupled and yet give an integrated his banking done. pushing the seams to develop the adoption. their customers and also innovate the bank and ensure that the experience externally. Opti-Channel Interface experience is well thought through. Smartphone penetration is Building the base for with internal processes to bring in Let's take the e-KYC based account better efficiencies. The entire l Building the base for connected currently pegged at around 50 per connected enterprises What is driving the need for this opening and see the possible flows: journey of connected enterprises Enterprises: This falls in the cent of the Indian population. change is the changing topography As technology advances, rests on the tenet that as consumers realm of Transaction Banking, Given this, having an integrated l In case of the youth segment, of the mobile penetration. The enterprises have started to connect digitise, all kinds of enterprises are Open Bank Architecture and Omni-Channel story weaving an end-to-end account opening can number of mobile internet users is through seamless integrations. A under stress to make their customer seamless experiences for Opti-Channel based on customer be digitised, as is the case with expected to rise to 300 million by crying need for all kinds of engagement stronger; and all areas businesses to connect their clients segment/location of transaction is a RBL Bank's Abacus product 2017, as against 159 million as of innovations lies on the base that necessity. where customer engagement l Building a data-oriented culture January 2017, as per a report by l In case of customer segments enterprises are willing to touches a banking transaction, the to service the two broad IAMAI and KPMG. So also the What does Omni-Channel to Opti- which prefer assisted account participate in a larger web of flow of transaction and information

Financial Foresights 36 Financial Foresights 37 Industry Insights

has to be seamless and without digitisation of most supply chain that complete transactions leave a manual intervention/process steps; structures need cutting-edge digital lot of data footprint which can be for example, connected enterprises solutions. Connecting the consumed for the consumer good. backed by mobility. Payment enterprises and adding value- For all consumers, managing risk is transactions integrated with ERPs added services will enable an imperative. Banks have a unique through APIs alongside a mobile- enterprises to exist in various webs opportunity to help enterprises, based transaction authorisation of transaction flow and have connected to them, to de-risk by function makes the whole integrated experiences that were providing insights that may not be experience absolutely seamless for hitherto very manual and low on directly available. a CFO. efficiency. So also, there are immense With increased use of mobility and Also, these connected enterprises opportunities available for the connected enterprises, there is an will lay the foundation for following: ever-growing fear of security and dependable data, which will push 1 Cross-sell a variety of banking privacy. These are areas where one credit into segments where there products basis customer can build a greater element of trust was paucity, especially in the SME behaviour by increasing transparency and at and MSME segment. the same time enabling enterprises 2 Lend basis data and patterns This next step in this evolution is to to experience comfort through and not CIBIL scores opening a get transactions on a block chain. additional controls and governance. new range of customers Once this is done transactions will In the world of digital, this is like be non-repudiable creating a whole walking on thin ice. A strong 3 Offer risk mitigation solutions new structure of secure backend and efficient management by blending private and public transactions. This will definitely capability in the event of an issue data reduce concerns around security. coming up is the key to success of 4 Reduce frauds for banks and FICCI – Data Centre connected enterprises. Using data insight as their enterprises by offering With the changing environment in digital base fraud management information India and the government's The possibilities are immense and Today, we are fast progressing into aggressive push towards a digital India is on the cusp of delivering a data-rich economy. Connected and 'less cash' economy, Digital 3.0 in a big way. n systems, mobility and platforms

Sujatha Mohan, Head, Digital & New Initiatives,RBL Bank brings with her around 26 years of experience with deep knowledge in a variety of functions and industries. She has experience in working in custodial services, treasury and technology. She has worked extensively in technology around core banking, Payments, transaction Banking, Business Intelligence, retail Solutions and so on. In her current role she manages New Initiatives for the bank. She carries the responsibility to make the bank the partner of choice for the Open Bank Strategy that the bank has consciously adopted. She is responsible for developing RBL Bank's Platform strategy. The delivery includes creating the technology architecture, the business orientation, process management and strong customer service in the digital banking services. Before taking over the strategic role she has been a Key leader involved in the technology transformation for RBL Bank. She has been involved in setting up most of the key systems in the bank and has helped deliver some strategic initiatives which have enabled the bank to win awards and accolades. Asian Banker award (2013 and 2015), IBA best IT Team award to name a few, has also helped create a strategic position for the bank in the technology space. Before joining RBL Bank she has worked in various capacities in Oracle Financial Services Software Limited (erstwhile iflex solutions), ANZ Grindlays Bank and SHCIL. She has rich experience in technology and is also a subject matter expert in multiple areas in Banking

Financial Foresights 38 Financial Foresights 39 Industry Insights

has to be seamless and without digitisation of most supply chain that complete transactions leave a manual intervention/process steps; structures need cutting-edge digital lot of data footprint which can be for example, connected enterprises solutions. Connecting the consumed for the consumer good. backed by mobility. Payment enterprises and adding value- For all consumers, managing risk is transactions integrated with ERPs added services will enable an imperative. Banks have a unique through APIs alongside a mobile- enterprises to exist in various webs opportunity to help enterprises, based transaction authorisation of transaction flow and have connected to them, to de-risk by function makes the whole integrated experiences that were providing insights that may not be experience absolutely seamless for hitherto very manual and low on directly available. a CFO. efficiency. So also, there are immense With increased use of mobility and Also, these connected enterprises opportunities available for the connected enterprises, there is an will lay the foundation for following: ever-growing fear of security and dependable data, which will push 1 Cross-sell a variety of banking privacy. These are areas where one credit into segments where there products basis customer can build a greater element of trust was paucity, especially in the SME behaviour by increasing transparency and at and MSME segment. the same time enabling enterprises 2 Lend basis data and patterns This next step in this evolution is to to experience comfort through and not CIBIL scores opening a get transactions on a block chain. additional controls and governance. new range of customers Once this is done transactions will In the world of digital, this is like be non-repudiable creating a whole walking on thin ice. A strong 3 Offer risk mitigation solutions new structure of secure backend and efficient management by blending private and public transactions. This will definitely capability in the event of an issue data reduce concerns around security. coming up is the key to success of 4 Reduce frauds for banks and FICCI – Data Centre connected enterprises. Using data insight as their enterprises by offering With the changing environment in digital base fraud management information India and the government's The possibilities are immense and Today, we are fast progressing into aggressive push towards a digital India is on the cusp of delivering a data-rich economy. Connected and 'less cash' economy, Digital 3.0 in a big way. n systems, mobility and platforms

Sujatha Mohan, Head, Digital & New Initiatives,RBL Bank brings with her around 26 years of experience with deep knowledge in a variety of functions and industries. She has experience in working in custodial services, treasury and technology. She has worked extensively in technology around core banking, Payments, transaction Banking, Business Intelligence, retail Solutions and so on. In her current role she manages New Initiatives for the bank. She carries the responsibility to make the bank the partner of choice for the Open Bank Strategy that the bank has consciously adopted. She is responsible for developing RBL Bank's Platform strategy. The delivery includes creating the technology architecture, the business orientation, process management and strong customer service in the digital banking services. Before taking over the strategic role she has been a Key leader involved in the technology transformation for RBL Bank. She has been involved in setting up most of the key systems in the bank and has helped deliver some strategic initiatives which have enabled the bank to win awards and accolades. Asian Banker award (2013 and 2015), IBA best IT Team award to name a few, has also helped create a strategic position for the bank in the technology space. Before joining RBL Bank she has worked in various capacities in Oracle Financial Services Software Limited (erstwhile iflex solutions), ANZ Grindlays Bank and SHCIL. She has rich experience in technology and is also a subject matter expert in multiple areas in Banking

Financial Foresights 38 Financial Foresights 39 FICCI – Data Centre FICCI – Data Centre

Top 10 ECM Deals - 1Q 2017 Equity Capital Markets Date Issuer Sector Deal Type Deal Value Bookrunners ($m) 29-Mar Yes Bank Ltd Finance FO 754 CITIC, BAML, IIFL l Indian ECM volume stood at $3.1bn (via 51 deals) for 1Q 2017, up 64% Holdings, Motilal Oswal on the $1.9bn (via 36 deals) raised in 1Q 2016 3-Mar Hindalco Industries Metal & Steel FO 502 BAML, AXIS, CITI, JM Financial,SBI l IPO volume increased to $626m (via 30 deals) for 1Q 2017, compared to $383m (via 24 deals) for 1Q 2016. There were no convertibles issued for 14-Mar Avenue Supermarts Retail IPO 281 KOTAK, AXIS, Edelweiss, HDFC, ICICI, FFS, JM the first quarters of 2016 and 2017 Financial, Motilal l Follow-on volume for 1Q 2017 increased 65% to $2.5bn (via 21 deals) Oswal, SBI from the $1.5bn (via 12 deals) for 1Q 2016 23-Feb Bharat Electronics Technology FO 252 SBI, ICICI, Edelweiss, DB 27-Feb Idea Cellular Ltd Telecommunications FO 193 CITI l Yes Bank Ltd.'s $754m follow on via book runners CITIC, BAML, IIFL 28-Jan BSE Ltd Finance IPO 182 Edelweiss, AXIS, JEF, Holdings and Motilal Oswal is the largest ECM transaction for 1Q NOM, Motilal Oswal, 2017 SBI, SMC Capital $bn India ECM Volume Deals 28-Mar Canara Bank Finance FO 173 SBI 8 70 2-Mar Apollo Hospitals Healthcare FO 160 DB 20-Feb Max Financial Svcs Healthcare FO 125 CITI 7 60 6 27-Mar South Indian Bank Finance FO 97 Edelweiss 50 5 40 Asia Pacic ECM Volume by Nation 1Q 2017 4 30 Pos. Nationality Deal Value ($m) No. % Share 3 1 China 47,956 255 63.6 20 2 2 Japan 12,755 74 16.9 1 10 3 India 3,080 51 4.1

0 0 4 Hong Kong 2,538 66 3.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 5 Australia 2,480 142 3.3 2013 2014 2015 2016 2017 6 South Korea 2,414 36 3.2 IPO FO Equity Linked Deals 7 Taiwan 1,416 31 1.9 8 Thailand 804 9 1.1 India ECM Volume by Top 10 Sectors 9 Philippines 688 2 0.9 Finance 10 Malaysia 565 17 0.8 Utility & Energy

Technology India ECM Volume 1Q 2017 Pos. Bookrunner Parent Deal Value ($m) No. % Share Metal & Steel 1 Citi 418 3 13.6 Healthcare 2 State Bank of India 404 7 13.1 Retail 3 Bank of America Merrill Lynch 289 2 9.4 Telecommunications 4 Motilal Oswal Financial Services L 256 4 8.3 Transportation 5 Edelweiss Financial Services Ltd 253 5 8.2 Construction/Building 6 Deutsche Bank 223 2 7.2 Auto/Truck 7 CITIC Securities 189 1 6.1 $m 7 IIFL Holdings Ltd 189 1 6.1 0 200 400 600 800 1,000 1,200 1,400 9 ICICI Bank 167 3 5.4 1Q 2016 1Q 2017 10 Axis Bank 165 4 5.4

Financial Foresights 40 Financial Foresights 41 FICCI – Data Centre FICCI – Data Centre

Top 10 ECM Deals - 1Q 2017 Equity Capital Markets Date Issuer Sector Deal Type Deal Value Bookrunners ($m) 29-Mar Yes Bank Ltd Finance FO 754 CITIC, BAML, IIFL l Indian ECM volume stood at $3.1bn (via 51 deals) for 1Q 2017, up 64% Holdings, Motilal Oswal on the $1.9bn (via 36 deals) raised in 1Q 2016 3-Mar Hindalco Industries Metal & Steel FO 502 BAML, AXIS, CITI, JM Financial,SBI l IPO volume increased to $626m (via 30 deals) for 1Q 2017, compared to $383m (via 24 deals) for 1Q 2016. There were no convertibles issued for 14-Mar Avenue Supermarts Retail IPO 281 KOTAK, AXIS, Edelweiss, HDFC, ICICI, FFS, JM the first quarters of 2016 and 2017 Financial, Motilal l Follow-on volume for 1Q 2017 increased 65% to $2.5bn (via 21 deals) Oswal, SBI from the $1.5bn (via 12 deals) for 1Q 2016 23-Feb Bharat Electronics Technology FO 252 SBI, ICICI, Edelweiss, DB 27-Feb Idea Cellular Ltd Telecommunications FO 193 CITI l Yes Bank Ltd.'s $754m follow on via book runners CITIC, BAML, IIFL 28-Jan BSE Ltd Finance IPO 182 Edelweiss, AXIS, JEF, Holdings and Motilal Oswal is the largest ECM transaction for 1Q NOM, Motilal Oswal, 2017 SBI, SMC Capital $bn India ECM Volume Deals 28-Mar Canara Bank Finance FO 173 SBI 8 70 2-Mar Apollo Hospitals Healthcare FO 160 DB 20-Feb Max Financial Svcs Healthcare FO 125 CITI 7 60 6 27-Mar South Indian Bank Finance FO 97 Edelweiss 50 5 40 Asia Pacic ECM Volume by Nation 1Q 2017 4 30 Pos. Nationality Deal Value ($m) No. % Share 3 1 China 47,956 255 63.6 20 2 2 Japan 12,755 74 16.9 1 10 3 India 3,080 51 4.1

0 0 4 Hong Kong 2,538 66 3.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 5 Australia 2,480 142 3.3 2013 2014 2015 2016 2017 6 South Korea 2,414 36 3.2 IPO FO Equity Linked Deals 7 Taiwan 1,416 31 1.9 8 Thailand 804 9 1.1 India ECM Volume by Top 10 Sectors 9 Philippines 688 2 0.9 Finance 10 Malaysia 565 17 0.8 Utility & Energy

Technology India ECM Volume 1Q 2017 Pos. Bookrunner Parent Deal Value ($m) No. % Share Metal & Steel 1 Citi 418 3 13.6 Healthcare 2 State Bank of India 404 7 13.1 Retail 3 Bank of America Merrill Lynch 289 2 9.4 Telecommunications 4 Motilal Oswal Financial Services L 256 4 8.3 Transportation 5 Edelweiss Financial Services Ltd 253 5 8.2 Construction/Building 6 Deutsche Bank 223 2 7.2 Auto/Truck 7 CITIC Securities 189 1 6.1 $m 7 IIFL Holdings Ltd 189 1 6.1 0 200 400 600 800 1,000 1,200 1,400 9 ICICI Bank 167 3 5.4 1Q 2016 1Q 2017 10 Axis Bank 165 4 5.4

Financial Foresights 40 Financial Foresights 41 FICCI – Data Centre FICCI – Data Centre

India IPO Volume 1Q 2017 Pos. Bookrunner Parent Deal Value ($m) No. % Share Mergers & Acquisitions 1 ICICI Bank 104 2 16.7 2 Kotak Mahindra Bank Ltd 68 2 10.8 l India ranked as the second targeted nation in Asia Pacific region for 1Q 2017 with $24.3bn, up considerably on the 3 Axis Bank 57 2 9.2 $10.5bn announced for 1Q 2016 3 Edelweiss Financial Services Ltd 57 2 9.2 l India Outbound M&A volume down 48% to $1.3bn for 1Q 2017 compared to $2.6bn for 1Q 2016 3 Motilal Oswal Financial Services L 57 2 9.2 l India Inbound M&A volume down 15% to $2.9bn for 1Q 2017 from the $3.3bn for 1Q 2016 3 State Bank of India 57 2 9.2 l Domestic M&A volume increased considerably to $21.5bn for 1Q 2017, compared with $7.3bn for 1Q 2016 7 Fortune Financial Services (India) 31 1 5.0 l Vodafone India Ltd.’s merger with Idea Cellular Ltd. in a $14.4bn valued transaction is the largest announced 7 HDFC Bank 31 1 5.0 M&A transaction for 1Q 2017 7 JM Financial Ltd 31 1 5.0

10 Jefferies LLC 26 1 4.2 $bn India M&A Volume 10 Nomura 26 1 4.2 25 10 SMC Capitals Ltd 26 1 4.2 20

India FO and Conv. Volume 1Q 2017 15

Pos. Bookrunner Parent Deal Value ($m) No. % Share 10 1 Citi 418 3 17.0 2 State Bank of India 346 5 14.1 5 3 Bank of America Merrill Lynch 289 2 11.8 4 Deutsche Bank 223 2 9.1 0 5 Motilal Oswal Financial Services L 198 2 8.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 6 Edelweiss Financial Services Ltd 196 3 8.0 2013 2014 2015 2016 2017 7 CITIC Securities 189 1 7.7 Domestic Inbound Outbound 7 IIFL Holdings Ltd 189 1 7.7 9 Axis Bank 108 2 4.4 10 JM Financial Ltd 100 1 4.1 India Announced M&A Attorney Ranking 1Q 2017 Pos. Attorney Value $m # Deals % Share 1 AZB & Partners 17,770 18 73.1 2 Vaish Associates Advocates 14,993 2 61.7 2 Slaughter and May 14,993 2 61.7 2 S&R Associates 14,993 2 61.7 2 Bharucha & Partners 1 4,993 2 61.7 6 Shardul Amarchand Mangaldas & Co 218 4 0.9 7 Allen & Overy LLP 200 1 0.8 8 Luthra & Luthra 100 1 0.4 9 BMR Legal 89 1 0.4 10 Corrs Chambers Westgarth 55 1 0.2

Financial Foresights 42 Financial Foresights 43 FICCI – Data Centre FICCI – Data Centre

India IPO Volume 1Q 2017 Pos. Bookrunner Parent Deal Value ($m) No. % Share Mergers & Acquisitions 1 ICICI Bank 104 2 16.7 2 Kotak Mahindra Bank Ltd 68 2 10.8 l India ranked as the second targeted nation in Asia Pacific region for 1Q 2017 with $24.3bn, up considerably on the 3 Axis Bank 57 2 9.2 $10.5bn announced for 1Q 2016 3 Edelweiss Financial Services Ltd 57 2 9.2 l India Outbound M&A volume down 48% to $1.3bn for 1Q 2017 compared to $2.6bn for 1Q 2016 3 Motilal Oswal Financial Services L 57 2 9.2 l India Inbound M&A volume down 15% to $2.9bn for 1Q 2017 from the $3.3bn for 1Q 2016 3 State Bank of India 57 2 9.2 l Domestic M&A volume increased considerably to $21.5bn for 1Q 2017, compared with $7.3bn for 1Q 2016 7 Fortune Financial Services (India) 31 1 5.0 l Vodafone India Ltd.’s merger with Idea Cellular Ltd. in a $14.4bn valued transaction is the largest announced 7 HDFC Bank 31 1 5.0 M&A transaction for 1Q 2017 7 JM Financial Ltd 31 1 5.0

10 Jefferies LLC 26 1 4.2 $bn India M&A Volume 10 Nomura 26 1 4.2 25 10 SMC Capitals Ltd 26 1 4.2 20

India FO and Conv. Volume 1Q 2017 15

Pos. Bookrunner Parent Deal Value ($m) No. % Share 10 1 Citi 418 3 17.0 2 State Bank of India 346 5 14.1 5 3 Bank of America Merrill Lynch 289 2 11.8 4 Deutsche Bank 223 2 9.1 0 5 Motilal Oswal Financial Services L 198 2 8.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 6 Edelweiss Financial Services Ltd 196 3 8.0 2013 2014 2015 2016 2017 7 CITIC Securities 189 1 7.7 Domestic Inbound Outbound 7 IIFL Holdings Ltd 189 1 7.7 9 Axis Bank 108 2 4.4 10 JM Financial Ltd 100 1 4.1 India Announced M&A Attorney Ranking 1Q 2017 Pos. Attorney Value $m # Deals % Share 1 AZB & Partners 17,770 18 73.1 2 Vaish Associates Advocates 14,993 2 61.7 2 Slaughter and May 14,993 2 61.7 2 S&R Associates 14,993 2 61.7 2 Bharucha & Partners 1 4,993 2 61.7 6 Shardul Amarchand Mangaldas & Co 218 4 0.9 7 Allen & Overy LLP 200 1 0.8 8 Luthra & Luthra 100 1 0.4 9 BMR Legal 89 1 0.4 10 Corrs Chambers Westgarth 55 1 0.2

Financial Foresights 42 Financial Foresights 43 FICCI – Data Centre FICCI – Data Centre

India Announced M&A Advisory Ranking 1Q 2017

Pos. Advisor Value $m # Deals % Share Debt Capital Markets 1 Morgan Stanley 15,243 3 62.7 2 Kotak Mahindra Bank Ltd 15,229 4 62.7 l India DCM issuance for 1Q 2017 reached $21.1bn (via 145 deals), up considerably on the $6.2bn (via 86 deals) raised 3 Axis Bank 15,030 3 61.9 in 1Q 2016 4 Rothschild & Co 15,005 3 61.7 l Corporate IG and Agency bonds accounted for 56% and 24% of the total DCM volume with $11.9bn and $5.0bn, 5 UBS 14,993 3 61.7 respectively for 1Q 2017

5 Robey Warshaw LLP 14,993 2 61.7 l SBI led the offshore issuer table for 1Q 2017 with a 16.8% share, while Power Finance Corp topped the domestic 5 Goldman Sachs 14,993 2 61.7 issuer ranking with a 18.4% share

5 Bank of America Merrill Lynch 14,993 2 61.7 l India Domestic DCM volume reached INR982.3bn for 1Q 2017, up considerably on the INR286.0bn raised in 1Q 9 Citi 1,108 3 4.6 2016. Activity increased to 128 deals during 1Q 2017 from the 81 recorded for 1Q 2016 10 Jefferies LLC 245 1 1.0 l International issuance for 1Q 2017 reached $6.3bn, compared with 1Q 2016 volume of $1.9bn. Activity increased to 18 deals versus 5 deals for 1Q 2016

$bn India International DCM Deals 7 25 Corp FIG SSA Deals 6 20 5

15 4

3 10

2 5 1

0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2013 2014 2015 2016 2017

$bn India Domestic Debt Maturity Deals 50 600 Deals

500 40

400 30 300 20 200

10 100

0 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Financial Foresights 44 Financial Foresights 45 FICCI – Data Centre FICCI – Data Centre

India Announced M&A Advisory Ranking 1Q 2017

Pos. Advisor Value $m # Deals % Share Debt Capital Markets 1 Morgan Stanley 15,243 3 62.7 2 Kotak Mahindra Bank Ltd 15,229 4 62.7 l India DCM issuance for 1Q 2017 reached $21.1bn (via 145 deals), up considerably on the $6.2bn (via 86 deals) raised 3 Axis Bank 15,030 3 61.9 in 1Q 2016 4 Rothschild & Co 15,005 3 61.7 l Corporate IG and Agency bonds accounted for 56% and 24% of the total DCM volume with $11.9bn and $5.0bn, 5 UBS 14,993 3 61.7 respectively for 1Q 2017

5 Robey Warshaw LLP 14,993 2 61.7 l SBI led the offshore issuer table for 1Q 2017 with a 16.8% share, while Power Finance Corp topped the domestic 5 Goldman Sachs 14,993 2 61.7 issuer ranking with a 18.4% share

5 Bank of America Merrill Lynch 14,993 2 61.7 l India Domestic DCM volume reached INR982.3bn for 1Q 2017, up considerably on the INR286.0bn raised in 1Q 9 Citi 1,108 3 4.6 2016. Activity increased to 128 deals during 1Q 2017 from the 81 recorded for 1Q 2016 10 Jefferies LLC 245 1 1.0 l International issuance for 1Q 2017 reached $6.3bn, compared with 1Q 2016 volume of $1.9bn. Activity increased to 18 deals versus 5 deals for 1Q 2016

$bn India International DCM Deals 7 25 Corp FIG SSA Deals 6 20 5

15 4

3 10

2 5 1

0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2013 2014 2015 2016 2017

$bn India Domestic Debt Maturity Deals 50 600 Deals

500 40

400 30 300 20 200

10 100

0 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Financial Foresights 44 Financial Foresights 45 FICCI – Data Centre FICCI – Data Centre

INR bn India Domestic Corporate vs FIG 700 Corp FIG Loan Markets 600

500 l India loan volume reached $10.1bn (via 61 deals) for 1Q 2017, down 32% on the $14.8bn (via 85 deals) for 1Q 2016

400 l Leveraged loan volume decreased 32% to $7.9bn via 58 deals, compared to $11.6bn (via 80 deals) for 1Q 2016

300 l Investment grade loan volume was down to $2.2bn (via 3 deals) versus $3.2bn (via 5 deals) for 1Q 2016

200 l Among the corporate borrowers, Oil & Gas sector topped the industry ranking for 1Q 2017 ($3.8bn) with a 40.9% share 100 l RIL Ltd.’s $1.8bn IG deal arranged by ANZ, BNP, BAML, BOC(HK), Bank of Nova Scotia, MUFJ, BAR, CITI, 0 Credit Agricole, DBS, EDC, HSBC, JPM, KDB, Mizuho, National Bank of Abu Dhabi, SCB, Sumitomo, UOB, 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Westpac, Mega International is the largest transaction for 1Q 2017. 2013 2014 2015 2016 2017

$bn India Loan Volume Deals 35 120

30 100 25 80 20 60 15 40 10

5 20

0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2013 2014 2015 2016 2017 Investment Grade Leverage Deals

$bn Proceeds For Repayment as % of India Syndicated Loan Volume Deals 35 40

30 35 30 25 25 20 20 15 15 10 10

5 5

0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2013 2014 2015 2016 2017 Volume %Repayment

Financial Foresights 46 Financial Foresights 47 FICCI – Data Centre FICCI – Data Centre

INR bn India Domestic Corporate vs FIG 700 Corp FIG Loan Markets 600

500 l India loan volume reached $10.1bn (via 61 deals) for 1Q 2017, down 32% on the $14.8bn (via 85 deals) for 1Q 2016

400 l Leveraged loan volume decreased 32% to $7.9bn via 58 deals, compared to $11.6bn (via 80 deals) for 1Q 2016

300 l Investment grade loan volume was down to $2.2bn (via 3 deals) versus $3.2bn (via 5 deals) for 1Q 2016

200 l Among the corporate borrowers, Oil & Gas sector topped the industry ranking for 1Q 2017 ($3.8bn) with a 40.9% share 100 l RIL Ltd.’s $1.8bn IG deal arranged by ANZ, BNP, BAML, BOC(HK), Bank of Nova Scotia, MUFJ, BAR, CITI, 0 Credit Agricole, DBS, EDC, HSBC, JPM, KDB, Mizuho, National Bank of Abu Dhabi, SCB, Sumitomo, UOB, 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Westpac, Mega International is the largest transaction for 1Q 2017. 2013 2014 2015 2016 2017

$bn India Loan Volume Deals 35 120

30 100 25 80 20 60 15 40 10

5 20

0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2013 2014 2015 2016 2017 Investment Grade Leverage Deals

$bn Proceeds For Repayment as % of India Syndicated Loan Volume Deals 35 40

30 35 30 25 25 20 20 15 15 10 10

5 5

0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2013 2014 2015 2016 2017 Volume %Repayment

Financial Foresights 46 Financial Foresights 47 FICCI – Data Centre FICCI – Data Centre

India Corporate Loan Volume by Sectors Utility & Energy Project Finance Oil & Gas Construction/Building

Metal & Steel India Project Finance Loans Ranking 1Q 2017

Transportation Pos. Mandated Lead Arranger Value $m # Deals % Share Chemicals 1 State Bank of India 2,205 15 48.8 Telecommunications 2 Axis Bank Ltd 1,292 6 28.6 Real Estat e/Property 3 UCO Bank Ltd 588 2 13.0 Mining 4 ICICI Bank Ltd 312 3 6.9 Healthcare 5 Andhra Bank 59 1 1.3 $bn 0 1 2 3 4 5 6 Allahabad Bank 25 1 0.5 1Q 2016 1Q 2017 7 Corporation Bank 10 1 0.2 7 India Infrastructure Finance Co Ltd 10 1 0.2 7 Indian Overseas Bank Ltd 10 1 0.2 7 Oriental Bank of Commerce 10 1 0.2

India Sponsor Ranking for Project Finance 1Q 2017

Pos. Sponsor Value $m # Deals % Share 1 Indian Oil Corp Ltd 824 2 10.8 2 Adani Group 811 7 10.7 3 Jindal United Steel Ltd 578 1 7.6 4 RSPL Ltd 537 1 7.1 5 Doosan Power Systems India Pvt Ltd 475 1 6.2 6 Sikkim Power Investment Corp Ltd 405 1 5.3 7 RPG Enterprises 350 2 4.6 8 JSW Group 325 1 4.3 9 KSK Power Ventur plc 254 1 3.3 10 Sterlite Technologies Ltd 206 1 2.7

Financial Foresights 48 Financial Foresights 49 FICCI – Data Centre FICCI – Data Centre

India Corporate Loan Volume by Sectors Utility & Energy Project Finance Oil & Gas Construction/Building

Metal & Steel India Project Finance Loans Ranking 1Q 2017

Transportation Pos. Mandated Lead Arranger Value $m # Deals % Share Chemicals 1 State Bank of India 2,205 15 48.8 Telecommunications 2 Axis Bank Ltd 1,292 6 28.6 Real Estat e/Property 3 UCO Bank Ltd 588 2 13.0 Mining 4 ICICI Bank Ltd 312 3 6.9 Healthcare 5 Andhra Bank 59 1 1.3 $bn 0 1 2 3 4 5 6 Allahabad Bank 25 1 0.5 1Q 2016 1Q 2017 7 Corporation Bank 10 1 0.2 7 India Infrastructure Finance Co Ltd 10 1 0.2 7 Indian Overseas Bank Ltd 10 1 0.2 7 Oriental Bank of Commerce 10 1 0.2

India Sponsor Ranking for Project Finance 1Q 2017

Pos. Sponsor Value $m # Deals % Share 1 Indian Oil Corp Ltd 824 2 10.8 2 Adani Group 811 7 10.7 3 Jindal United Steel Ltd 578 1 7.6 4 RSPL Ltd 537 1 7.1 5 Doosan Power Systems India Pvt Ltd 475 1 6.2 6 Sikkim Power Investment Corp Ltd 405 1 5.3 7 RPG Enterprises 350 2 4.6 8 JSW Group 325 1 4.3 9 KSK Power Ventur plc 254 1 3.3 10 Sterlite Technologies Ltd 206 1 2.7

Financial Foresights 48 Financial Foresights 49 FICCI – Data Centre FICCI – Data Centre

Top 10 Indian Project Finance Deals 1Q 2017 Financial Borrower Project Name Sector Value $m Investment Banking Revenue Close Date 24-Mar GSPL India Gasnet Ltd Mehsana Bhatinda Jammu Srinagar Gas pipeline 713 l India IB revenue reached $114m for 1Q 2017, up 26% on 1Q 2016 ($91m). Revenue was also up 16% compared to last Pipeline Project Additional Financing quarter 2016 ($99m) 10-Feb IndianOil LNG Pvt Ltd Kamarajar LNG Terminal Project Oil Renery/LNG 646 and LPG Plants l Syndicated Loan fees accounted for 20% of total India IB revenue for 1Q 2017 with $23m which is down by 42% on 24-Mar Jindal United Steel Ltd Odisha 1.13MTPA Carbon Steel Steel mill 578 the $40m for 1Q 2016 Plant Project l DCM revenue accounted for 34% of total India IB revenue for 1Q 2017 with $39m which is up considerably on the 28-Mar RSPL Ltd Kuranaga Soda Ash Plant Project Petrochemical/ 537 $6m for 1Q 2016 Chemical Plant l 31-Mar Doosan Power Systems India Pvt Ltd Doosan 2640MW Thermal Power Power 475 M&A fees accounted for 32% of the total India IB revenue for 1Q 2017 with $37m which is up 10% on $33m for 1Q Plant Project 2016 8-Feb Teesta Urja Ltd Teesta III Hydroelectric Power Renewable fuel 405 l ECM fees accounting for 13% of the total India IB revenue, increased 32% to $15m in 1Q 2017 from the $11m for 1Q Plant PPP Additional Financing 2016 9-Mar Dhariwal Infrastructure Pvt Ltd Dhariwal Coal-based Power Plant Power 332 India Investment Banking Revenue Project Additional Financing $m Deals 11-Jan JSW Jaigarh Port Ltd JSW Jaigarh Port Expansion Project Port 325 250 400 Additional Financing 350 3-Mar Raipur-Rajnandgaon-Warora Raipur-Rajnandgaon-Warora Power 254 200 Transmission Ltd Transmission Line Project 300 16-Feb KSK Mahanadi Power Co Ltd KSK Mahanadi Power Project Power 254 250 Cost Overrun Financing 150 200

100 150

100 50 50

0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2013 2014 2015 2016 2017 DCM ECM M&A Loan Deals

Asia (ex Japan) IB Revenue $m % 4,500 9 4,000 8 3,500 7 3,000 6 2,500 5 2,000 4 1,500 3 1,000 2 500 1 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2013 2014 2015 2016 2016 India as % of Asia (ex Japan) as % of total IB

Financial Foresights 50 Financial Foresights 51 FICCI – Data Centre FICCI – Data Centre

Top 10 Indian Project Finance Deals 1Q 2017 Financial Borrower Project Name Sector Value $m Investment Banking Revenue Close Date 24-Mar GSPL India Gasnet Ltd Mehsana Bhatinda Jammu Srinagar Gas pipeline 713 l India IB revenue reached $114m for 1Q 2017, up 26% on 1Q 2016 ($91m). Revenue was also up 16% compared to last Pipeline Project Additional Financing quarter 2016 ($99m) 10-Feb IndianOil LNG Pvt Ltd Kamarajar LNG Terminal Project Oil Renery/LNG 646 and LPG Plants l Syndicated Loan fees accounted for 20% of total India IB revenue for 1Q 2017 with $23m which is down by 42% on 24-Mar Jindal United Steel Ltd Odisha 1.13MTPA Carbon Steel Steel mill 578 the $40m for 1Q 2016 Plant Project l DCM revenue accounted for 34% of total India IB revenue for 1Q 2017 with $39m which is up considerably on the 28-Mar RSPL Ltd Kuranaga Soda Ash Plant Project Petrochemical/ 537 $6m for 1Q 2016 Chemical Plant l 31-Mar Doosan Power Systems India Pvt Ltd Doosan 2640MW Thermal Power Power 475 M&A fees accounted for 32% of the total India IB revenue for 1Q 2017 with $37m which is up 10% on $33m for 1Q Plant Project 2016 8-Feb Teesta Urja Ltd Teesta III Hydroelectric Power Renewable fuel 405 l ECM fees accounting for 13% of the total India IB revenue, increased 32% to $15m in 1Q 2017 from the $11m for 1Q Plant PPP Additional Financing 2016 9-Mar Dhariwal Infrastructure Pvt Ltd Dhariwal Coal-based Power Plant Power 332 India Investment Banking Revenue Project Additional Financing $m Deals 11-Jan JSW Jaigarh Port Ltd JSW Jaigarh Port Expansion Project Port 325 250 400 Additional Financing 350 3-Mar Raipur-Rajnandgaon-Warora Raipur-Rajnandgaon-Warora Power 254 200 Transmission Ltd Transmission Line Project 300 16-Feb KSK Mahanadi Power Co Ltd KSK Mahanadi Power Project Power 254 250 Cost Overrun Financing 150 200

100 150

100 50 50

0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2013 2014 2015 2016 2017 DCM ECM M&A Loan Deals

Asia (ex Japan) IB Revenue $m % 4,500 9 4,000 8 3,500 7 3,000 6 2,500 5 2,000 4 1,500 3 1,000 2 500 1 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2013 2014 2015 2016 2016 India as % of Asia (ex Japan) as % of total IB

Financial Foresights 50 Financial Foresights 51 NOTES The publication is presently disseminated online to a large set of audience of over 5000 people. The readership mainly comprises: l FICCI members across the country Financial Foresights l Economists & academicians Distribution & l Senior government officials l Members of the diplomatic community (India and abroad) Readership l Policy experts The electronic version of the publication is also disseminated globally through FICCI's international offices. Partnership There are various options available for partnering with FICCI's quarterly Opportunities publication Financial Foresights

Principal Partner (6 Lakh INR) - Benefits Co-Partner (3 Lakh INR) - Benefits

l Inside front cover page advertisement in each issue l 1 full page advertisement in each issue l 5 complementary delegate passes in any three of l 3 complementary delegate passes in any three of the financial sector conferences (Banking, Fintech, the financial sector conferences (Banking, Fintech, Capital Markets, Insurance & Pensions) Capital Markets, Insurance & Pensions)

Advertisement in Special positions - colour advertisement Rate (Rs) Financial Foresights Inside front cover/inside back cover 1,50,000 Advertisements for print & online Full page (other than inside front/ inside back cover) 1,00,000 version per issue of the publication Half page (other than inside front/ inside back cover) 60,000

Partnership Benets

1. Strong brand image 2. Large reach 3. Activity throughout the FICCI is the largest and FICCI has an extensive year oldest apex business membership base across the As the publications are organisation in India with a country including various circulated every three strong brand image. regional chambers of months, the partner would Association with FICCI commerce in India. This be able to enjoy repeated would therefore help in would enable the sponsor to visibility through the year. creating a stronger brand increase its brand reach image for the partner. manifolds and target the key decision makers in the field of business, finance and economy.

For further details, please contact Mr Amit Tripathi at 91-11-23487424 Financial Foresights 52 email: amit.tripathi@ficci.com NOTES The publication is presently disseminated online to a large set of audience of over 5000 people. The readership mainly comprises: l FICCI members across the country Financial Foresights l Economists & academicians Distribution & l Senior government officials l Members of the diplomatic community (India and abroad) Readership l Policy experts The electronic version of the publication is also disseminated globally through FICCI's international offices. Partnership There are various options available for partnering with FICCI's quarterly Opportunities publication Financial Foresights

Principal Partner (6 Lakh INR) - Benefits Co-Partner (3 Lakh INR) - Benefits

l Inside front cover page advertisement in each issue l 1 full page advertisement in each issue l 5 complementary delegate passes in any three of l 3 complementary delegate passes in any three of the financial sector conferences (Banking, Fintech, the financial sector conferences (Banking, Fintech, Capital Markets, Insurance & Pensions) Capital Markets, Insurance & Pensions)

Advertisement in Special positions - colour advertisement Rate (Rs) Financial Foresights Inside front cover/inside back cover 1,50,000 Advertisements for print & online Full page (other than inside front/ inside back cover) 1,00,000 version per issue of the publication Half page (other than inside front/ inside back cover) 60,000

Partnership Benets

1. Strong brand image 2. Large reach 3. Activity throughout the FICCI is the largest and FICCI has an extensive year oldest apex business membership base across the As the publications are organisation in India with a country including various circulated every three strong brand image. regional chambers of months, the partner would Association with FICCI commerce in India. This be able to enjoy repeated would therefore help in would enable the sponsor to visibility through the year. creating a stronger brand increase its brand reach image for the partner. manifolds and target the key decision makers in the field of business, finance and economy.

For further details, please contact Mr Amit Tripathi at 91-11-23487424 Financial Foresights 52 email: amit.tripathi@ficci.com FEDERATION OF INDIAN CHAMBERS OF COMMERCE AND INDUSTRY

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