Towards presence-less, paperless, and cashless service delivery

Transcription

1 Towards presence-less, paperless, and cashless service delivery 1

2 125 Years of Power Generation Edison to Now 2

3 125 Years of Telecom Graham Bell to Now 3

4 Layered Innovation Mass Flourishing! 4

5 TECH STACK ecommerce (Amazon) Taxi (Uber) Hotel (Airbnb) Payments Evolution of Payment Systems, Security Frameworks,... Visa/Master, ApplePay Smart Phones Telecommunications & Computing Technologies - Hardware Innovations Android, IOS Open APIs, Platforms Large Scale Infrastructure, Private Companies, Google Maps Govt. Technology Fundamental Technology Innovations, Govt. Funded, Publicly Available TCP / IP, Internet, SMTP ( ), GPS Layering of Innovation 5

6 Aadhaar Hourglass Architecture Applications / Systems Healthcare Apps Finance Apps SIM Digital Locker UPI Minimal Standardized Simple design Easy to execute Easy to write a law DBT AEPS APB esign Aadhaar Biometric Sensors Identity as a utility, an enabler Allows innovation on all sides Amplifies ecosystem players Phones Micro ATM Tablets Attendance Device Devices 6

7 J A M - The Foundation of the India Stack 7

8 Pradhan Mantri Jan Dhan Yojana BANKING FOR ALL Source: As on 25 Sep 2016, Nandan Nilekani,

9 Accelerated by regulatory innovation 2nd Aug Years, 14 New Banks BANK NATIONALIZATION +10 New Banks On Tap Banking Licenses Ushering in a new ERA of DIFFERENTIATED BANKING Nandan Nilekani, 2016

10 1 Billion in 5½ Years A Ubiquitous Digital Identity Infrastructure for a digital desh. 50 M 100 M The Aadhaar system can 300 M 100 M 600 M 950 M 1058 M Source: Data from authenticate transactions per day, in real time! 10

11 The rise of smartphones Current sales 25M about smartphones per quarter Source: Ericsson Mobility Report 11

12 The Evolution of the India Stack - Built on JAM Digilocker AEPS Aadhaar ekyc Consent Architecture Aadhaar Authentication UPI APB esign M 190 M 250+ M Aadhaar 600 M 950 M 1+ B Mobile 944 M 1005 M 1+ B JDY Source: Ericsson Mobility Report, PMJDY, Aadhaar Web Sites 12

13 Name DoB/Age Gender Address Mobile/ Unique Lifetime 13

14 Aadhaar Authentication NO MORE PHYSICAL PRESENCE Are you who you claim to be? Only a yes/no answer Anytime anywhere 14

15 Aadhaar e-kyc NO MORE PHOTOCOPIES! Access ONLY via authentication No more fake identities No more paper 15

16 esign - eliminating wet signature Residents needing to sign a document Application Service Provider (ASP) esign Service Providers (ESP) UIDAI (for Aadhaar ekyc) 1.Online request for Digital Signature 2. Request for PoA/PoI Data 4. Online Instant Digital Signature Issued 3. PoA/PoI Through ekyc Existing DSC non-scalable due to physical verification, paper process, and use of dongles esign allows all Aadhaar holders to digitally sign anytime anywhere Open API based, allowing applications to easily integrate

17 Digital Locker - eliminating fake papers Issues Documents Digitally Issuer Accesses Documents Online Digital Locker Requestor Ecosystem driven Digitally protected Approves Access Users Source: Open API based No Physical Papers No Fake Documents 17

18 Unified Payment Interface Push & Pull Payments Payments can be initiated by payer or payee. Ubiquitous - Bank accounts Every one with a bank account can send money to any bank account in India! Easy Immediate Payments Real-time posting Funds are not Virtual Payment Address No need to disclose account information. Allows account portability, enhances privacy. Validation & Assurance Real-time validation of the account and balance Timely Notification Minimal Issuer/Acquirer Cost Immediate notifications of the payment made Smartphone replaces card and PoS machine!! 18

19 Electronic consent architecture Structured consent artifact and log system User controlled data sharing, data flow, and data retention Consent Flow Digitally signed consent artifact Separation of data and consent flows Consistent with current legal frameworks CONSENT MANAGER Data Providers Data Consumers (Banks,Telco, Hospitals,etc) (Banks,Credits Providers etc) Data Flow Secure data sharing based on consent 19

20 Benefits of proposed consent architecture Allows more data sources to be used for lending decisions Stronger underwriting, less likelihood for loan defaults Data flows tracked digitally, providing traceability Quickly identify fraud, take early action. Reduced data leakage, improved security and privacy Consent tokens are shared, not credentials Reduced potential for misuse, leading to improved security and privacy Real Identity is verified in the process Reduces potential fraud, and improves the effectiveness of credit bureaus. Purely digital process Instant monitoring, and reporting, improved transparency. Regulator can monitor defaults, risks, fraud 20

21 INVESTMENTS (SEBI) SKILLS OTHERS CONSENT LAYER Provides a modern privacy data sharing framework Open Personal Data Store STACK CREDIT (RBI) CASHLESS LAYER Game changing electronic payment systems and transition to cashless economy IMPS, AEPS, APB, and UPI INDIA COMMERCE (GSTn) PAPERLESS LAYER Rapidly growing base of paperless systems with billions of artifacts Aadhaar e-kyc, E-sign, Digital Locker PRESENCE-LESS LAYER Unique digital biometric identity with open access of nearly a Billion users Aadhaar Authentication JAM Jan Dhan, Aadhaar, Mobile 21

22 1.058 Bn 2.6 Bn Enrolments In 6 years since launch Authentications of 470M unique ids 150 Mn 320 Mn ekyc in 4 years 50 Mn unique ids AEPS Payment auth in 4 yrs XX Mn Rs transacted >1 Mn e-sign in 15 months >0.8 Mn unique ids 2.5 Mn 3.7 Mn Digilocker users & Docs 15 months Source: UIDAI Website, Conversations with NPCI, emudhra, Deity officials 300K UPI VPA in Less than 1 Month Nandan Nilekani,

23 India Stack Ecosystem 1 Digilocker Provider 126 Banks (AEPS) 794 Banks (APB) 20 Banks (UPI) Source: UIDAI Website, Conversations with NPCI, emudhra, Deity officials 3 esign ESPs 23 KSA 162 KUA Aadhaar ekyc 25 ASA 262 AUA Aadhaar Authentication Nandan Nilekani,

24 India will go from data poor to data rich nation in 5 Years... Social Commerce Payment Machine Learning & Algorithms Paperless Process Digital Identity allowing data driven decision making for scale and inclusion! 24

25 WHAT YOU KNOW PIN / Password WHAT YOU HAVE Card WHO YOU ARE Proof of Identity The phone will replace the card as the What you Have authentication factor Nandan Nilekani,

26 WHAT YOU KNOW WHAT YOU HAVE Smart Phone WHO YOU ARE Aadhaar Combining Security with Convenience Biometric smart phones enable 1-click 2-factor authentication Nandan Nilekani,

27 The future is here! Smartphones with integrated Aadhaar compliant Iris recognition available for commercial use! Source: 27

28 Why is the India Stack disruptive? Allows Innovation Broad based, ubiquitous, inclusive platform No physical presence required (reduces more costs) Cuts Onboarding Costs Aligns market goals with social goals Cuts Transaction Costs Increases trust - allows a new business architecture to emerge 28

29 Providing credit without friction 29

30 In today s model, Rajni can never get a loan! Sales Cost Servicing Cost No Credible Data Customers with the lowest default rates have the highest interest rates

31 Need a loan Agrees to share data Repays loan Sees loan offers Sells Goods Receives loan Accepts best offer 7 Key Steps For Rajni to get a small intra-day loan 31

32 Credit marketplace app Payment app Repays loan Payment app Consent Architecture Need a loan Agrees to share data Sees loan offers Sells Goods Receives loan Transaction a/c & app Accepts best offer Credit marketplace Each step requires a solution paperless contract 32

33 Aadhaar/ ekyc digi locker Credit marketplace app auth orization Consent api UPI Need a loan Payment app Repays loan UPI Payment app Architecture Agrees to share data Sees loan offers Sells Goods Receives loan Transaction a/c & app UPI Credit marketplace Accepts best offer API for loan offers Each solution is enabled by the India Stack paperless contract esign Digilocker 33

34 Feeling of Wellbeing Cashless & Paperless Digital Business Growth Footprints Virtuous Cycle of Credit to the first mile Business Micro-Credit 34

35 Credit at scale Millions of Borrowers Thousands of Lenders Credit Marketplaces Digital Footprints Data Driven Algorithm Driven Consented Data Sharing Enabled by Mobile Electronic Contracts Digital Payments 35

36 Making investments accessible 36

37 Investment at scale Low Cost, High Volume, Low Ticket Size Source: NCAER-CMCR survey, discussions with ScripBox 37

38 Sachet Sized Transactions! With reduced costs, minimum ticket sizes will come down, volumes will go up! TXn Cost Comm. Break Even Ticket Size Rs bps Rs 10,000 Rs 5 50 bps Rs 1,000 Rs 2 50 bps Rs

39 To Increase Market Size 10x or 50x Cost of Doing Business Must Come Down! 39

40 Enabling The Skills Marketplace 40

41 The Skills Problem Low trust environment Employers do not trust credentials Training is not a differentiator No premium for quality No accumulation of skill credentials Lack of mobility 41

42 Virtuous Cycle for Skills Training, Apprenticeship & Certification Differentiated Earnings Guru-Shishya Parampara Ecosystem of institutes/agencies Market places like LinkedIn, Babajobs, etc. Trusted Credentials Credible History Employment Aadhaar, Digital Locker for portability and trust 42

43 Skilling at scale SKILLS COMMERCE EXPERIENCE TOURISM TRANSPORT Networks and aggregators driving mass skilling in several domains CONSENT ARCHITECTURE DIGITAL LOCKER COMMON IDENTITY India Stack allows skill and experience to be portable 43

44 Innovative Solutions to India s Hard Problems - Commercially Viable - Far reaching consumer impact - Reinforces experimentation A robust foundation to enable innovative 100s of Experiments - Low barriers to entry - Level playing field - Aligned to national issues - Rapid success/failure cycle solutions to India s hard problems Market Making Policy via Challenge Grants India Stack as Digital Infrastructure Regulatory Policy 44

45 Thank You 45