At the Microsoft CEO Conference hosted by Bill Gates, in my speech I shared that FINTECH is the key issue of our times

Transcription

1 UKIBC Forum Digital Disruption in India Thursday, July 6 6:40 PM 7:00 PM LexisNexis, 30 Farringdon Street Keynote Address on UK-India Fintech Opportunity *** His Excellency Mr. Dinesh Patnaik, Deputy High Commissioner of India to the UK Kevin McCole, COO, UK India Business Council Distinguished Guests, Members of the media, Ladies & Gentlemen This forum is being held at a very opportune time when India is leading the world in the digital frugal transformation business and social impact scorecard With the three D s of disruption demographics, deregulation and digitisation significantly aligned, India is poised to emerge as the epicenter of the global digital transformation Digitization is proving to be the key differentiator and competitive advantage for companies especially in the Banking sector where disruptive forces are challenging traditional models of doing business At the Microsoft CEO Conference hosted by Bill Gates, in my speech I shared that FINTECH is the key issue of our times There are at least a dozen areas which are slated to be the next big thing - BlockChain, IOT, Big Data, Artificial Intelligence, Machine Learning etc. Each of these has the potential to bring about massive transformational changes Page 1 of 5

2 Over the last decade, Banks have focused on using real-time analytics to drive higher profitability from existing customer using transactional behavior & demographic touchpoints and data The industry is now transforming to use predictive data analytics to help customers with recommendations basis their lifecycle stages for a stable & prosperous financial future given that consumer behavior is constantly changing which can only be addressed through more cognitive and machine learning based deliverables I believe that Digitization in Banking should be driven by the Consumer landscape but also evolve around B2B Business like, Forex and Treasury, Regtech (Regulatory Technology), Trade Finance, Capital Markets, Risk and Compliance and SMEs most importantly The recent stratospheric event of demonetization in India is a classic case of changing consumer behavior in today s Digital world by adoption of Digital payments instruments, which is estimated to increase approximately 10X of current levels inverting the cash to non-cash ratio. There has been an increase in Bank Deposit, Retail Mutual Fund flows and Insurance sales, resulted in the Financialisation of the economy The Indian Government has firmly embraced the philosophy of Digitization of the economy and launched initiatives aimed at achieving a less-cash economy IndiaStack which is the public digital architecture- has been a critical factor to solve India s critical problems and moving to a presence-less, paperless, and cashless service delivery bringing Government, businesses, startups and developers on the same platform driving India towards a Less- Cash economy with frugal products like Bharat QR( Quick Response) Code, Page 2 of 5

3 UPI, Aadhaar-enabled Payment System (AePS) & Bharat Bill Payment System (BBPS) Ladies & Gentlemen, today s consumer is always-on Social Media platforms & solving the problem of Digital identity crisis with Aadhar for online authentication and confirmation of KYC data will accelerate customer acquisition for Banks Banks are also capitalizing on this New Wave of Big Data and Analytics to drive efficiencies on customer journeys starting from acquisition. For example, user behavior on social media platforms is leveraged to redesign credit scoring for the prospective customer. I am pleased to share with you that YES BANK is one of the most engaged brand on digital and social media platforms with over 6.7 million followers on Facebook, the 2 nd highest amongst all Banking Brands in the world and we are only 12 years old We have been using social media for not only acquisition and engagement, but creating more customer centric banking solutions derived from social media led feedback For example we launched India s 1 st Chatbot-based banking app YES Tag which crossed more than 10,000 users last quarter, and in March we also launched India s first AI driven bot for a wallet - innovations driven by consumer demand The next question on all our minds, is how do Financial Services firms and Banks handle this wave of disruption? How do organizations capitalize on this disruption instead of being disrupted by it? I don t conform to the idea of attackers or disruptors Vs. incumbents. Page 3 of 5

4 At YES BANK, we believe in Co-opetition i.e. Collaboration with Competition. We call this the A.R.T. of Banking - Alliances and Relationships through Technology. As a core philosophy of this co-innovation, YES BANK decided to offer Banking as a Platform & Banking as a Service. We were the first bank in India to open up our APIs to integrate with other startups & companies. Similarly, we are working with over startups at any point in time to cocreate solutions, including powering them with YES BANK UPI offering. With partnerships, YES BANK has over 35% of market share of UPI based transactions. For a young Bank like ours, this is a tremendous achievement competing against much larger, established Banks with established legacy I believe Competition makes us faster, Collaboration makes us better, Cocreation makes us better + faster I would like to take an example here, to channelize our digital focus we are collaborating with challengers/ Fintechs across the entire EAT value chain (Engage, Acquire & Transact) which also helps us cut go-to-market time and costs on new developments and test the market with new offerings. It is a win-win for both I am pleased to share with you that YES BANK launched YES FINTECH - its business accelerator program for Fintech Startups in January 2017 and received an overwhelming response from over 750 companies from across 18 countries We are working closely with these startups to create solutions which will help us redefine our processes and make the Banking experience better for our corporate and retail clients Page 4 of 5

5 I firmly believe that UK and India can collaborate closely on developing Fintechs and the startup ecosystems in our countries UK Chancellor Excellency Philip Hammond participated in the India-UK FinTech Conference in Mumbai earlier this year where he stressed on a deeper partnership between our FinTech sectors These efforts can be further augmented by the formation of a UK-INDIA Entrepreneurship & Innovation Incubation Program - a focused, collaborative Start up Incubation Program between UK & India with a defined mandate to Encourage Entrepreneurship in India through a F.I.V.E (Funding, Incubation, Vesting, Expansion) framework YES BANK would be eager to partner with UKIBC to actualize this Incubation program I thank UKIBC for giving me the opportunity to share my views on this tremendous Fintech opportunity and I look forward to working closely with innovators, regulators and policy makers to drive greater synergy and building a stronger strategic partnership between India and the UK in this sector Thank you. Page 5 of 5