Fintech in India

Fintech in India –
Powering a digital
economy
September 2018
KPMG.com/in
Foreword
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
d
Fintech ecosystems have evolved banking, artificial intelligence and

significantly with a considerable effort blockchain, which have the potential
from financial institutions, start-ups, to bring a sea-change in the financial
the government, venture capitalists services industry. While these themes
and regulators to create a conducive add substantial value if implemented
environment of collaboration and in silos, a concurrent adoption of the
dynamism. The sweeping changes triad of themes presents a compelling
introduced by fintech start-ups are case to build the next generation open
likely to have an impact that extends frameworks. The report also explores
beyond the confines of the traditional the current landscape of technological
financial services industry. Financial adoption in the financial services
institutions are increasingly adopting industry and serves as a guide for
a collaborative approach with fintech financial services organisations in India
start-ups to provide personalised to accelerate their journey in the open
and engaged services to customers. digital era.
Furthermore, the government’s
We hope that you enjoy reading our
reformist stance has led to a gallop
publication and as always, we look
towards building a vibrant open
forward to your feedback/suggestions.
digital economy.
2018 started on a positive note in
India with the emergence of new age
fintech start-ups, investments and non- Manish Jain
core players in the financial services
Partner
industry. This is an indication of a
Digital and Fintech -
growing acceptance of fintech making
Management Consulting
a giant stride towards its potential.
KPMG in India
The contribution from all stakeholders
i.e. government, regulators, financial
institutions, start-ups and investors
have become a key enabler to build a
robust fintech ecosystem.
With KPMG in India and NASSCOM’s
10000 Startups’ proficiency in the Debjani Ghosh
fintech sector, the report offers a President
view of three emerging themes: open NASSCOM
Table of contents
21
Artificial
Intelligence-led
transformation in
financial services
sector
03
Unlocking
the potential
of open
banking
01
Introduction
Blockchain — Enabling
a distributed ledger
ecosystem in financial
services Concurrent
43
adoption of
33 technologies
01 Fintech in India – Powering a digital economy
Introduction
Financial institutions are undergoing on innovation in areas, such as all the stakeholders in the shared
a dramatic transformation in the artificial intelligence (AI) and ecosystem - government,
digital age - from their roles and data analytics, thereby attracting regulators, financial institutions,
responsibilities, service offerings, attention from investors. fintech are expected to play a
products to the distribution critical role. Developing a successful
The Asian fintech market is
channels. With the adoption of framework is vital for a flourishing
currently dominated by two growing
technology, ever-changing regulatory environment for experimentation.
economies, China and India01.
landscape and ever-growing
Fintech investments in China
consumer expectations, there is
strengthened in the first half of
a rapid influx of new entrants in
2018 as compared to the end of
the market, which is of growing
201701. The Indian market witnessed
concern for the incumbent financial
massive investments in fintech with
institutions (FIs).
31 deals in Q2 1801, propelled by
Innovation in the fintech industry has the strong government reforms
taken the world by storm, becoming to steer the country towards a To be relevant in the
a global phenomena not limited digital economy. current world around the
to any one region alone. Amongst customers, institutions
Initiatives led by the government
the various focus areas in which needs to leverage emerging
and regulators for digital India,
fintech has been making waves, technologies and re-look at
aided by the growing internet and
two areas which have driven fintech the customer experience,
smartphone penetration, has led to
adoption in the past few years stand while lowering their barriers
the adoption of digital technologies.
apart, these include - adoption to accept innovation. In
The financial services industry is
of data at the core of the fintech today’s world, advisors
rapidly evolving and moving from
business models and adoption of play an important role
the traditional ‘one size fits all’
open banking regulations across in providing the agility
approach to a more personalised
the globe. Going forward, it may required to support the
service approach.
not be surprising to see increasing innovation. From customer
participation from the non-financial Adoption of these technologies mobility experience to risk
service sector, such as telecom, by financial institutions can management, emerging
power and retail, leveraging open be achieved through fintech technologies are adding
data as a means to augment their collaboration, integration or immense value to
portfolio by foraying into financial development of in-house skill set business processes
services. to execute these technologies. in financial services.
However, the real impact of digital
From an investment perspective, the
transformation is likely to come
global fintech sector has witnessed - Gayathri Parthasarathy
from concurrent adoption of
H1 2018 investments surpassing Head
open banking, AI-driven data
2017 total to reach USD57.9 billion01. Financial Services - Advisory
intelligence and distributed ledger
Dominant market players continue KPMG in India
technology.
to emerge in the areas of payments
and lending. Meanwhile, a broader For India to embark upon the
range of companies are focused journey to become digital economy
01. The Pulse of Fintech 2018, KPMG, 31 July 2018
02
In this report, KPMG in India - in collaboration with NASSCOM 10,000 start–ups have showcased three
emerging technologies, which are rapidly capturing the market and becoming effective catalyst in proliferating
the digital landscape.
Artificial Intelligence
Blockchain
• In 2018, global AI spending Open banking

• Blockchain has the
is expected to reach
• Banks which were potential to redefine open
USD19.1billion, of which
traditionally confined and shared economy
the banking sector will
to closed ecosystems across areas such as
account for 17 per cent02.
are now allowing third payments, trade finance,
• Banking and financial parties to access data in know your customer,
institutions are real-time through open frauds reduction, clearing
collaborating with banking standards. In our and settlement. Many
technology companies and research for this report, it financial institutions, in
are looking at migrating was observed that open association with fintech
from the current AI application program firms, are establishing
deployment model aimed interface (API) is the new consortiums to co-create
at low-impact rule based reality leading to an open development.
processes to high impact digital economy. • In India, it is estimated
cognitive and predictive
that blockchain has the
process.
potential to generate up to
• AI is gaining momentum USD5 billion in business
in India with over 400 value over the course of
AI-related start-ups and the next five years04.
attracting investments of
USD150 million, just over
the last five years03.
02. Worldwide spending on cognitive and artificial intelligence systems

will grow to USD19.1 billion in 2018, IDC, 22 March 2018
03. Artificial Intelligence Primer, NASSCOM, July 2018
04. Blockchain can add USD5 billion to Indian economy in 5 years:
NASSCOM official, Business Standard, 27 July 2018
Unlocking
the potential of
open banking
04
Traditionally, banking was confined to a closed This entails providing personalised services, through a
ecosystem with data access in silos and limited data shared ecosystem with customer consent and thereby,
sharing with the customer. Consequently, the services unlocking the huge potential for open banking.
and products offered were unique to the institution.
With the leap in technology and evolution of the shared
ecosystem, the wave of open banking is gaining
Banking Services are moving from a 360 degree
prominence and thereby enabling financial institutions
view to a 720 degree view of customer relationship.
to provide more value to customers.
Closed banking Open banking
Customers
Fintech Account
Proprietary apps collaborations service (AISP)
Other banks Payment

APIs Open service (PISP)
Banking
Private API
Cross-industry Lending/credit
partnership platform
Payment network
Banking domain
Introduction to open banking

Open banking can be defined as an ecosystem It is observed that open banking originated as a
that furnishes the end user with data from a regulatory initiative and globally got off to a slow
labyrinth of financial institutions via application start, with low consumer awareness and delayed
programming interfaces (APIs). APIs help a software implementation by banks, contributing to its stunted
or application (app) to communicate and work with adoption. However, innovation and digital architecture
another application and seamlessly share information. transformation sparked by fintech firms may lead
to creation of new business models based on
collaboration with financial institutions.
APIs allow third parties to access banking Open banking implementation in the near future is
or financial information data in real-time, most likely to be compliance driven, adhering to the
enabling them to integrate their respective guidelines and focused only towards implementation.
systems, processing the data and offering Post successful adoption, the focus would shift
more valuable insights and services. towards value added services and reaping the benefits
of this open ecosystem.
Open banking architecture
Ecosystem that provides Financial institutions,

a user with a network of fintech firms, software
financial institutions’ data developers and
through the use of APIs Definition Who transaction platforms
Banking data access What How Transfer information

to third parties in with appropriate
real-time consent framework
Increase Accessibility Increase Third parties

Objective for customers to build financial
transparency innovation
applications
New entrants such

Market moving towards
Drivers Regulatory push as fintechs and non-
value-added services
financial players
720 degree customer view through
open data
Innovative delivery models Personalised services based Foundation for

such as Banking-as-a-service on intelligent information finance 4.0
(BaaS)
The following are the roles for banks in the open Revenue model
banking ecosystem:
The building block of an open banking ecosystem is
the open API architecture. The common misconception
Integrator Producer about an API is that it is an enabler of a product.
The bank controls The bank focuses on However, an API is a product in itself and demands a
production and products and services product strategy.
distribution of products and distributes via third
A strategic shift from building a scalable, secure,
and services parties
robust and agile API to allow the consumption by
outside parties is the gateway to monetise the open
Distributor Platform banking ecosystem.
The bank distributes The bank retains a stake
products and services in both production and
created by third parties distribution by acting as
a market intermediary
06
The gateway to monetise the Open Banking Ecosystem
Merchant Merchant
Offerings Offerings
Bank Proprietary Platform Fintech Platform
Public/Open APIs
Bank IT System
Bank IT System
Increase sales
conversion of core Revenue sharing Partner with
Access fees product as API with fintechs alternate financiers
makes it easy to sell
API is a technology-oriented product, however, a API product management is a relatively new concept
strategic shift in the vision of businesses is required to in the industry. The sooner organisations realise its
embrace APIs. benefits and move towards building the right strategy,
the more impressive its returns shall be.
The maturity of sharing APIs with other

parties is a ‘one step at a time’ revolution.
Initially, financial institutions built APIs for their own

digital transformation and eventually opened it for
larger consumption thereby, leading to monetisation in
terms of pay-per-use, subscription, data and revenue
sharing models.
Adoption of open banking across the globe01

Open banking has differing initiation, control models an organic approach to adoption of open banking
and maturity levels around the world. In the U.K. and without coercing the banks. The adoption of open
Europe, regulators have been enforcing its mandatory banking in New Zealand is driven proactively by banks.
adoption. Singapore’s regulatory authority is promoting
Canada
Announced review
of open banking in
budget, Feb 2018
Not mandatory
U.K. Japan
Live from Jan 2018 Singapore Revised Banking
Mandatory for 9 banks Law in May 2017 to
Published API
Playbook, Nov 2016; introduce open APIs
U.S. might create API Not mandatory
Published principles recommendations for
for open data banks
sharing, Oct 2017 Not mandatory
Live from Jan 2018
Not mandatory
Hong Kong
Europe Revised Banking
Live from Jan 2018 Law in May 2017 to
Mexico Mandatory for all introduce open APIs
Passed Fintech banks Not mandatory
Malaysia
law allowing open Created open banking
banking, Mar 2018 Nigeria
implementation group,
Not mandatory Published open Q1 2018
API standards, Not mandatory
Mar 2018
Not mandatory Australia
India Reviewed, Feb 2018

Not mandatory
Implemented a set of APIs –
IndiaStack, 2016; RBI recommends New Zealand
providing an environment for Open API pilot, Mar 2018,
developing fintech innovations and Not mandatory
testing of APIs
Not mandatory
01. Europe lays the foundation of open banking, Forrester, 27 July 2018
08
India leaps towards open digital economy

Over the past few years, India has essayed several Government
guidelines and reforms such as granting multiple
licences for differentiated banking to small finance For open digital economy to thrive, strong government
banks, payment banks and introduced the unified support is a critical component. To propel India towards
payment interface to include the unbanked population a digital economy, the government along with the
of India in the formal financial services folder, support of regulators, is working aggressively towards
strengthening the payments ecosystem. To embrace creating a progressive digital ecosystem.
open banking architecture and unleash the true The government is expediting the move towards a
potential of shared ecosystem, a foundation has to be ‘presence, paper, and cash – less service delivery’
formed on four pedestals: government, regulators, system popularly known as ‘India Stack’02
traditional institutions and fintech.
India Stack03
On-demand Functions What it Covers
Consent Access fees

Reserve Bank of India
layer
Permission
Unified Payments Interface (UPI)
Aadhaar Payments Bridge
National Payments
Cashless layer Aadhaar enabled payments system
Corporation of India
Financial transactions Bharat Bill Payments System
Department of Digital locker

Electronics and Paperless layer Digital signature
Information Technology Documents
Unique Identification Aadhaar

Presence-less layer
Authority of India
Authentication
An upsurge is evident as a result of these reforms and

initiatives across several key indicators. Around 878
million bank accounts have been linked with Aadhaar
till March 2018. Transaction volume using Unified
Payments Interface grew from 0.1 million in October
2016 to 312 million in August 2018 and transactions in
value terms rose from INR0.5 million to over INR542
billion during the same period.03,04
02. Statistics, India Stack website, accessed on 03 September 2018

03. Statistics, National Payments Corporation of India (NPCI)
website, accessed on 03 September 2018
04. Statistics, UIDAI website, accessed on 03 September 2018
10
Adoption of government initiatives

Aadhaar
In mn 2017
on Mobile
1200 1100
1000 Payment network
950 2016
1000 and App
800 eSignature and

2015 Digital Locker
600
600
Aadhaar
400 350 2012
290 based e-KYC
250
190 300
200 250 Aadhaar based
190 2011
100 payments
0
2014 2015 2016 2017
2010 Aadhaar
Aadhaar Mobile Jan Dhan Identity
Source: India Stack, Accessed on 3 September 2018; National Payments Corporation of India (NPCI), Accessed on 3 September 2018; UIDAI, Accessed on 3 September 2018
The end goal of the relentless efforts put in by the Open government data05
government is not only to open basic bank accounts
for fostering financial inclusion, but to also manage the Open government data can be defined as publishing
inflow and outflow of funds in accounts. This is done information collected by the government in its entirety
by transferring the direct benefit subsidies with the such as budgets, spending records, healthcare
Jan Dhan Yojna accounts, and then crediting various measures, climate records and farming and agricultural
subsidy (LPG, fertiliser, day wages and so on) directly produce statistics.
into the bank account. This inflow of cash into accounts
would encourage the unbanked population into India currently has over two lakh data
adopting formal banking practices. resources, over 6,900 APIs across more than
100 departments, 118 chief data officers,
resulting in an overall improvement in India’s
global ranking by the Open Data Barometer06.
Government
E-Way Bills TReDS
e-Marketplace (GeM)
• 26,556 buyer organisations • Clocked INR10 crore • One of the three TReDS
bills within 80 days of its entities witnessed average
• 134,502 sellers and
launch on April 1, 2018 monthly volume of bills
service providers
discounted at INR100 crore
• INR10,829 crore with over 200 MSMEs
orders value registered in Oct-Dec 2017
GSTN BBPS
• 11.2 mn businesses • Facilitated INR31.5 million

registered under GST vs. bill payment transactions
6.4 mn under old system in Mar 2018 vs. INR18
million in Mar 2017
• GSTR-3B returns filed
increased from INR5.4 • Tied up with various state 05. Open Government Data (OGD) Platform India,
Accessed on 28 August 2018
million in Feb 2018 to power corporations
06. Statistics, Open Data Barometer, website
INR6.3 million in May 2018 accessed on 3 September 2018
Regulators
Regulators have been instrumental in India’s drive towards developing and strengthening the open digital
ecosystem. The key objectives of regulators is to lay the groundwork for interoperability across payment systems,
and create an environment for innovation and increased personalised experience.
To address these focus areas, regulators have taken the following steps:
Implemented Bharat Bill National Payments Corporation The RBI has published a report
Payments System (BBPS) of India has paved the way of the ‘working group on fintech
to improve the security and for open banking by putting and digital banking’, providing
speed of bill payments through infrastructural blocks such as recommendations for an
multiple modes. unified payments interface (UPI) environment for developing
and Aadhaar enabled payment fintech innovations and testing of
services (AePS) in place. applications/APIs developed by
banks/fintech companies.07
UPI to UPI 2.0 Journey08
Augus
t 2018 UPI 2.0
1 billion July 2017
transactions
April
2017
BHIM
Aadhaar
16
National ber 20 March
electronic toll Decem 2017
collection BHIM
BharatQR
August
2 016 Bharat
billpay
16
April 20 Globally, open banking has been
UPI
synonymous to two use cases – payments
and account aggregation, India with its
journey from UPI to UPI 2.0 has taken a
significant leap in the payments ecosystem.
Due to data access to third parties, regulators must continually recalibrate regulations and policies, develop
thresholds which are based on risk, keeping cybersecurity subjection in check, and maintaining a high degree of
consumer confidence.
07. Report of the working group on Fintech and Digital Banking, RBI, November 2017
08. Statistics, NPCI, website accessed on 26 August 2018
12
NBFC account aggregation
Reserve Bank of India (RBI) declared directives for assets under the purview of different regulators.
Non- Banking Financial Company - Account Aggregator While the aggregators will have a holistic view, they
(NBFC-AA), highlighting the framework for registration will not be the owners of the data. It is only with the
and operation of an account aggregator in India. customer’s consent that the information can be passed
on to various financial information users (FIUs).
The account aggregator would give a consolidated view
of a customer’s assets across the ecosystem including
NBFC–AA architecture
Flow
based Bank
credit
Mutual
Personal fund house
finance
management Consent Consent
Financial required Account required Financial
information Aggregators Accounts/ information
user Folio provider
APIs APIs
Wealth
management Encrypted Insurance
provider
Robo Tax/GST
advisory platform
Financial information provider (FIP) and financial information user (FIU)

NBFC – account aggregation is a positive step towards an open digital economy. The base of financial
information providers (FIPs) is vast and includes the following as per the directives from RBI:
Structures
Current and Deposits Commercial Certificate
investment
time liabilities with NBFC papers of deposits
products
Government Equity Mutual fund

Bonds Debentures
securities shares units
Exchange Indian Collective Alternate Insurance

Traded Funds depository investment investment policies
(ETF) receipts schemes funds
Units of Units of
Balance Real Estate Any other information as
Infrastructure
under NPS Investment may be specified by bank
Investment Trusts
Trusts (REIT)
Financial information user’s (FIU) could range from to share the information only once. In case of personal
a single end user to financial services providers wealth management, the information could be shared
(FIPs), fintech firms, service-based start-ups, service on a weekly basis.
aggregators and so on. Given the sheer volume of data
available, various effective solutions can be developed. Benefits for financial institutions
In the current ecosystem, a FIU has a skewed view
Consent architecture of the customer. Based on only its relationship with
A key aspect of an AA is the consent framework. The the customer. The FIU is able to suggest products
account aggregators are ‘data blind’ in nature - which which might be useful for the customer. Often the
means that to collect as well as share the information, relationship with the FIU might not be the true picture
the AA would need user consent. The consent of the overall customer potential. With access to data
architecture is developed on the basis of the nature of from various FIPs, the FIU might have a consolidated
the FIU, defining the purpose and the frequency of the view of the customer, leading to an effective customer
consent. For instance, if the information is shared for servicing and elevated cross-selling. This could
flow-based digital lending, the customer might want enhance customer stickiness.
Traditional financial institutions

The financial services industry is embracing the open digital economy to provide enhanced customer services
through various delivery models.
Financial services firms’ open banking delivery models
A Bengaluru-based An Indian bank tied-up

payment company has with an NBFC to launch
recently partnered with Payment Partnerships co-branded credit cards
an online ticket booking firms’ strategic within financial using digital and API
company tie-ups services firms banking technology
Investments Cross
/acquisitions industry
of tech firms partnerships
A global bank acquired Banks, through their
a Mumbai-based startup subsidiaries and NBFCs are
to help build an open Banks-fintechs partnering with adjacent
banking platform collaborations industries such as retailers
to provide digital solutions
Banks are emerging as accelerators

for fintech start-ups through
various models:
• Mentoring and collaborations
• Hackathons
• Innovation centres
Most fintech firms are approaching banks for validation through APIs to fintech firms, leading to faster
of their business model and access to customers’ data. development of products.
Additionally, most banks provide an open architecture
14
Building a strategy for

open banking — Challenges
To convert challenges into opportunities organisations need to build strategy around their business technology.
• Specialist with experience

in technical and API • Cross-industry partnerships
strategy and development
• Fintechs collaborations
• In-house expert to assist
• Investment/acquisition of
business users, who
tech firms
can build a strong sales Evolving
team that can address Collaboration Models • Incubation of start-ups
technical queries
• Team with mix set of • The government and
expertise along with Skill Gap regulators should build a
cross-skill trainings strong policy framework
along with the compliance
and monitoring mechanism
Policy Framework for ownership and sharing
• Phased approach:
of data
Create awareness
using mailers and
brochures - Conducting Lack of Awareness
Leads Consumers’
a pilot - Complete Apprehension in
implementation Giving Consent
Financial Institutions (FIs) continuing with old legacy systems may resist
as the customers may switch to other banks.
What is in it for me?
FIs that are embracing technology can add new potential revenue streams
by enhancing customer experience.
Connecting the dots

The unbundling of the banking value chain is still
in its nascent stage, but it is evident that open
digital economy is fast becoming a reality. Multiple
initiatives from the Government of India and regulators
have resulted in India moving towards a platform
driven economy.
Platforms are mere dots in the larger image

of digital world. When we take an initiative
to connect the dots, the bigger goal of a truly
open digital economy will be realised.
Confluence of platforms of
e-governance
In the past years, under the digital India initiative,
multiple digital platforms have been created:
• The e-stamping, Government e-marketplace
(GeM), e-way bill and Trade Receivable electronic
Discounting System (TReDS) platform, Goods and
Services Tax Network, Income Tax Return and BBPS
platforms are functioning successfully but in silos.
If only these platforms communicate and

share data mutually with customer consent
and that data is made available through open
APIs, it can add another layer to the current
Indian digital stack.
Connecting the dots is a beloved childhood game,

but what if the dots are constantly moving? The
new wave of emerging technologies and changing
business models is forcing businesses to create
images with moving dots. We focus more on the
design but it is the raw need of the customer that
needs a highlight. Instead of treating a customer
as a transactional segment in the digital world
understanding of behavioural patterns is more
important as each user is different.
- Manish Jain
Partner
Digital and Fintech - Management Consulting
KPMG in India
16
Boosting the ecosystem to foster collaboration and innovation
e-Stamp e-Way bill GeM TReDS
• Customer
Replace manual way • A compliance • Procurement by govt. • Financing of trade
mechanism for depts./organisations/ receivables of
• framework
Tamper proof movement of goods PSUs MSMEs
• Focuses on needs
Can be checked by • Reduced • Tools of e-bidding • Widening financing
and requirements
anyone through site documentation and reverse options
• Has a Unique e-auction
• Linked with GST • Updated portal for
Identification Number • Wallet-like facility MSMEs to list their
for advance payment projects for bank
financing through
bidding
GSTN Tax BBPS
• Common and shared • Mandatory online • Integrated and

IT infrastructure filing with income interoperable system
between the center over INR5 lakh
and states • Timely settlements
• e-verify facility using between parties
• Invoice matching Aadhaar or through
bank’s credentials • Multiple payment
• Checking the claim modes, options and
of Input Tax Credit channels
• Instant payment
confirmation
Connecting Ecosystem to foster collaboration and Innovation
National Platform
Account Aggregator Faster Credit Financing
Information Database Wider financing options
Strong Supply-chain Quicker Payments
Catering to an elevated service experience

Customers today have elevated service expectations. An open digital economy has the potential to cater to these
heightened expectations by personalising products to a large extent. With an abundance of open data the degree
of personalisation might not remain isolated only to a segment of the total audience, but expected to impact
individual lives.
Big technology firms influencing/ Liquidity

entering FS market management
• Big technological companies such • Enable viewing multiple bank

as e-commerce platforms and accounts, and manage and
online service aggregators have communicate with financial firms
the capacity to add perspectives through one window
and application, and influence their
services by combining financial data, • Develop notional pooling, a
spending patterns and behaviour mechanism for deriving liquidity
based on combined balances of
• For instance, a cab aggregator can corporate accounts, including
potentiallyget into a small ticket decentralised subsidiaries
lending business using analytics
and provide personalised lending • Utilise analytics to help consumers
services, thereby reducing customer manage their finances.
acquisition costs. • Leverage artificial intelligence (AI)
for intelligent cash management.
Flow-based Wealth management

lending solutions solutions
• Higher turnaround time and high • Although the relationship manager

operation costs due to processing has customer’s assets data with
the information across various their firm, they do not have access
stakeholders and lenders to data from multiple financial
institutions
• However, the open API framework
enables the lender to fetch the • However, open banking API enables
documents directly from the source a third-party provider to access
through explicit user consent. customer data from multiple data
sources with explicit customer
consent, thereby providing quality
advisory and leading to enhanced
customer stickiness.
18
Public credit registry

Reserve Bank of India (RBI) is currently working to setup Public Credit Registry (PCR), which would work as a
single point and real time confirmation repository for collating credit information of individuals and corporates. It
is likely to help banks evaluate borrowers’ creditworthiness and offer customised interest rates. PCR comprises
of the following elements:
Electronic registry Consent manager

Credit data dictionary,
of all verified credit NBFC-account aggregator
which cover entities,
instruments and will facilitate consented
relationships between
corresponding access to credit and non-
entities and actions
contracts in India credit information
PCR framework09
Borrowers
Core Credit Creditors

Information PCR
RBI
Banks/NBFCs/Regulated
FIs (such as domestic
borrowings, ECBs and Other Regulators
all contingent liabilities)
Credit Information Co. (CICs)
Information Utility (IUs)
Secondary Information Base
PCR-MCA Sub system (sub sys): PCR- Fraud database sub sys:
Company ID Details, Company Wilful defaulter List, RBI Caution
Financial Details, etc. List, CFR, ECGC, etc.
PCR-SEBI sub sys: PCR-Legal Database

Tax | Utility:
Promoter, Shareholding sub sys: Litigation
Payment Arrear
Market borrowing against debtor/promoter
PCR-IBBI sub sys: PCR-CERSAI sub sys: PCR-GSTN sub sys:

IBBI Listing Status Securitised Asset details GST Details
Public Credit Registry (PCR) will integrate information and Securities and Exchange Board of India. The
from multiple stakeholders (banks, NBFCs and utility/statutory bill payments database and legal
regulated financial institutions) and link with other database will enable API utilisation and strengthen
existing information systems such as those of the India’s credit landscape.
Ministry of Corporate Affairs, Reserve Bank of India
09. Report of the high level task force on Public Credit Registry for India,
RBI, April 2018
Open Banking in India -

the road ahead
In the last few years, India has taken monumental The main focus now should be towards developing
strides in developing a strong foundation to embrace a strong foundation of the appropriate digital
the wave of change in the financial services industry. infrastructure required to support the ever-changing
BFSI ecosystem. While India has taken progressive
steps towards the initiative, in the form of Aadhaar,
With all the progressive initiatives by the eKYC, eSign, eMandate, affordable mobile data and
government, the regulators and the industry, extensive smartphone penetration, there is still a gap
it is safe to say that while taking steps that needs to be fulfilled when it comes to facilitating
towards open banking, India is striding adoption of these reforms and techniques. Creating
towards an ‘open digital economy’. infrastructure and new reforms is just one aspect, the
other aspect is educating the people about the benefits
of the new reforms and their life changing effects.
The transformative migration from closed banking
towards an era of open and shared financial
ecosystem can be seen as a non-linear growth.
Up until now, customers used to avail financial
services from the institutions, which in turn, dictated Finally an important parameter for success
it’s terms and conditions to the customer. With the of this open digital economy, would be the
advent of technology, the open ecosystem and the cooperation from the financial institution’s
availability of options, now the equation is changed leadership. They must welcome this new
and the customer is most likely to dictate over the wave of change with humility and embark
financial institutions. on the journey of unlearning traditionally
accepted methodology and learn to embrace
While the world is moving towards implementing the change and connect the dots with
regulations for open banking to facilitate and foster renewed vigor and agility.
innovation, India, needs to cater to its pressing issue of
financial inclusion. Therefore, the adoption of an open
economy would help address the same issue.
20
Artificial
Intelligence-led
transformation
in the financial
services sector
22
The Indian financial services sector is currently in the Global AI Adoption

process of tackling some of its persisting challenges
such as shrinking margins and rising non-performance The widespread benefits of AI have encouraged many
assets (NPAs). The sector is also ripe with opportunities industries to invest aggressively in cognitive/AI software
due to entry of non-traditional finance players, shift capabilities.
in consumer preferences and rise in regulations and
compliance obligations. At this juncture of challenges Total AI
The banking
and opportunities, the Artificial Intelligence (AI) spending is
sector will
revolution could not have come at a better time. expected to grow at
account for 17% of
a CAGR of 46.2%
the total AI spending,
over 2016-21 to
alongside the retail
AI refers to the ability of machines to perform USD52.2 billion
sector01.
cognitive tasks such as thinking, perceiving, in 202101. In 2018,
decision making and problem solving, worldwide AI
which normally would have required human spending is
expected to grow
intelligence.
54.2% y-o-y to
USD19.1
billion01.
Open Banking creating headway
for AI applications Geographically, the U.S. is likely to account for more than
75 per cent of dispense on cognitive/AI systems in 2018,
The world is increasingly moving towards open banking followed by Western Europe01. By 2035, AI is expected
leading to the creation of repertoire of data, which to add USD957 billion to India’s economy02.
can be leveraged by AI-driven intelligence in creating
automation across front, middle and back office
business processes. India scenario
It has become imperative for financial institutions Indian financial services sector has started
to explore AI applications in designing business mainstreaming the concept of AI. With the push from
and operational strategies. The future would see an government to converge the public data systems and
incremental shift in usage of AI applications to drive movement of banks towards open frameworks , time
strategic initiatives for the institutions. would see proliferation in usage of AI to drive strategic
decision making in financial institutions . The future
AI, if intelligently applied, can drive quicker insight-based would also see an inordinate focus of using AI models
decisions, provide customised solutions to customers, to reduce unbanked and uninsured gap in rural areas.
discover new ways of working and capture new Some of the use cases such as AI led credit scoring,
revenue streams. micro insurance and distribution models can see a huge
adoption in rural areas. As AI involves learning on huge
chunks of unstructured and structured data, Indian
regulators will have to play a key role to ensure that the
concerns around data security and information sharing
are safeguarded while keeping business interest of
financial institutions in consideration.
01. Worldwide spending on cognitive and artificial intelligence systems will grow to 02. AI to add USD957 billion to India’s economy by 2035: NITI Aayog, CMIE, 06 June 2018
USD19.1 billion in 2018, According to New IDC Spending Guide, IDC, 22 March 2018
Embarking the transformation journey through AI-based solutions

Industry Headwinds AI Solutions
• Increased IT spend on maintaining existing core

• Increased access to newer
Shrinking banking systems and upgrading IT and security
segments and niche offerings
margins and leveraging differentiated insights
infrastructure,
increasing • Reduced cost and operational
cost pressure • Costs of compliance has been increasing leading efficiencies from intelligent
to huge expenditure on compliance management automation
Increased • In 2016-17, banks had reported 5,076 cases03 • Enhanced credit-underwriting

frauds leading of fraud involving INR23,933 crore decisions, computer vision for
to high NPAs, insurance/property underwriting
• 30 per cent increase in fraud cases in life
claims and • Pattern-matching analytics to
insurance industry
fines detect fraudulent activity
Lack of • Identifies pattern to suggest

customised relevant customer segmentation
products • Competition from entrants in the Fintech
• Learn from publicly available social-
and need for space who are using simpler and less
media streams to anticipate market
competitive expensive services
movements
product pricing
Lack of • With rapidly increasing mobile and internet • Conversational chatbots for
personalised and omni-channel
differentiated penetration and changing consumer
experience
customer preferences financial services industry need
• Optimise personal-finance
experience to adapt and provide relevant experience
management
• Process automation across multiple

Error in • Need to reduce manual errors in data sets
manual reconciliations and reporting to minimise
• Highlight reconciliation exceptions/
reconciliations operational cost and reputational damage
mismatches
and reporting
• Intelligent reporting and audit trails
03. Over 23,000 bank frauds worth Rs 1 lakh crore reported in 5 years: RBI, The Time of
India, 02 May 2018; Financial crime on rise in life insurance sector, The Times of India,
22 February 2018
24
Technical elements of AI
Banks and financial institutions are increasingly deploying various types of automation techniques across
processes based on technical requirements and return on investment (ROI) analysis. The three key AI elements
includes computer vision, machine learning and natural language processing.
Strategic thinking
• NLP helps to analyse, understand and make

sense of written and spoken human language.
It helps to structure and organise information
in clusters which can be used to derive
intelligible insights. The insights can be used to
predict customer behavior patterns , automate
document analysis and provide a more engaging
experience to customer while on online support
• In financial services, one of the promising
use of NLP is in chatbots.
Natural Language
Processing

Technical
elements
• It refers to the ability of • Uses artificial neural
machines to learn on
of AI networks, similar to
their own with or without those in the human
being programmed. brain computers, to
Fundamentally, machines Machine Computer identify associations
discover patterns and Learning Vision and relationships.
relationships in data The Visual recognition
and use them to make technology is capable of
predictions and solve automatically extracting
problems the required information
using images and
• Machine learning patterns such as face
algorithms are predominantly scans, tagged images,
used in financial services other picture contents
sector to provide sentiment
indicators, trading indicators • Banks offering remote check deposit via mobile or
and fraud risk management scanning facial expressions for sentiment analysis
across the front and back is an application of visual recognition technology
office processes.
Building the AI ecosystem

An integrated ecosystem is essential in the financial services sector to facilitate stakeholder collaboration
and engagement. Collaboration will help identify breakthroughs in AI technology and translate them into
business opportunities.
AI ecosystem collaborators
Financial Institutions Investors
Early adopters of AI solutions. Provide early stage

Engaged in implementing funding support and
and building pilots market access
Government and Artificial Start-ups

Regulators Intelligence
Develop policies, regulations Innovative solutions
and initiatives to strengthen transforming traditional
an AI infrastructure financial services
Technology Vendors Research Institutions
Build AI infrastructure and Skill building and

support through several producing talented
collaborative initiatives future ready workforce
26
Government and regulators Financial institutions

The government and regulators are prima facie Several financial institutions are collaborating with
catalyst for the growth of fintech sector in India. emerging AI startups to develop proofs of concept
Government of India and all the financial regulators on AI applications and implement in their business
are aggressively promoting the idea of AI powered operations. They are not only providing business
digital economy and coming with initiatives to create opportunities to AI driven fintech startups but also
strong fintech ecosystem driven by investments investing in the startup solutions. Financial institutions
and business opportunities. are providing open platforms to the startups and
developers through APIs and also supporting
incubation of early-stage fintech startups through
Some of the government and regulators led
accelerator programmes, hackathons and
initiatives are listed below:
innovation labs.
• Government of India has allocated INR3,073
crore for the Digital India programme, which will
Some examples of collaboration are:
focus on research, training, skill development
in robotics, artificial intelligence, big data • One of the leading banks in India is using
intelligence and quantum communications04 an AI focussed application that scans facial
expressions and provide instant feedback on
• The RBI’s inter-regulatory working group on
service quality. The cameras installed in the
fintech and digital banking has recognised the
bank branches capture the facial expression
use of AI and robotics in data analytics and risk
of customers and immediately report on the
management as a major fintech innovation05
customer’s present sentiment (good or bad)08
• The Securities and Exchange Board of India
• A leading security broker uses Phrazor, an
(SEBI) has set up a Committee on Financial and
AI tool developed by Vphrase to generate
Regulatory Technologies (CFRT) to facilitate the
personalised, narrative-based, easy-to-
application of AI in securities and trading and for
understand portfolio statements for their
SEBI’s other regulatory functions06
5,00,000 customers in four languages09
• Insurance Regulatory and Development
Authority of India (IRDA) is closely examining the
impact of innovation on product design and the
efficacy of inclusive insurance delivery07.
04. Govt doubles digital India allocation to ₹3,073 crore; telecom sector disappointed, 07. IRDA sets up committee to study innovations in insurance, 07 Dec 2017, The Economic
Business Line, 30 January 2018 Times
05. Report of the working group on Fintech and Digital Banking, RBI, November 2017 08. AI applications in the top 4 indian banks, techemergence, 19 July 2018
06. SEBI constitutes ‘Committee on Financial and Regulatory Technologies (CFRT) , SEBI, 09. Mumbai analytics startup vphrase analytics brings natural language generation to make
03 August 2017 reports more insightful, Analytics India Magazine, 30 Jan 2018
Technology players Investors

For an AI ecosystem to flourish, collaboration between AI is generating a lot of interest within the investor
fintech startups and large technology players is of community. According to NASSCOM, there were more
paramount importance. With the advent of usage of than 400 AI-related startups in India, who secured an
convoluted technologies, startups require support investment of USD150 million over the last five years.
with respect to skills and infrastructure from large Overall AI funding has increased to USD73 million in
technology players. Support can come in multiple 201713 from USD44 million in 2016.
forms such as white labeled products, common go-to
Investors are coming to terms that fintech is more than
market strategy, direct financial investment, incubation
payments or lending, and manifesting their interest in
support and access to know how.
various other sub-segments such as AI.
Universities and research institutions

• A leading IT player has set up a venture
To build an innovative AI ecosystem, industry bodies
fund focused on providing funding support
and academic institutions have undertaken several
to technology startups and AI related fintech
initiatives through professional courses and incubator
firms. It is also a part of NASSCOM Industry
programmes aimed at nurturing AI talent. The
Partner Program (NIPP) to support the growth
universities are focussing on promoting basic theory
of startups10
of AI, cross-disciplinary AI research as well as the
• Several large technology players have setup integration of academia and industries.
AI-focused accelerators to mentor startups
that use artificial intelligence and machine
learning in various areas including fintech11. Industry associations
Industry associations led by sector development goals
can play a crucial role to build AI-focused initiatives in
the country. They will need to enable the growth of the
technology by undertaking various programmes around
Startups policy advocacy, skill building, cross disciplinary AI
research, startup programmes and industry outreach.
Evolution of start-ups is imperative for a successful
fintech ecosystem. The flourishing effect of AI Some of the notable initiatives taken by industry bodies
related Fintech startups has been catalysed by an in India are:
increasing demand for personalised financial products • NASSCOM has opened a center of excellence
by consumers, need for building stronger risk and for data science and artificial intelligence in
fraud models by financial institutions, rampant rise of Bengaluru14,15
connected devices and support of venture capitalists.
• NASSCOM has signed a MoU with Niti Aayog to
Startups have played a major role in the growth of collaboratively build an AI ecosystem in the country
AI innovations by offering solutions to incumbent and accelerate innovation and skill building in various
organisations to redefine their core products, achieve sectors including financial services15.
operational excellence and create additional revenue
opportunities. The trend is increasingly shifting
from start-ups seen majorly as disrupters to also
being enablers of change. For example one of the AI
startups ThirdWatch is helping to prevent online fraud
using their platform Mitra. Mitra captures over 200
parameters and flags every transaction as red or
green in real time.12 Hence future is ripe to see
greater collaboration between different players of
the ecosystem.
10. Wipro USD100 Mn venture fund discloses investments in 9 startups between FY ‘15- 13. Artificial Intelligence Primer, NASSCOM, July 2018
17, inc42, 05 June 2017 14. NASSCOM opens centre for data science, Business Standard, 05 July 2018
11. Google Launchpad Accelerator India to mentor 10 startups, LiveMint, 13 July 2018 15. NASSCOM unveils centre for data, AI, The Hindu, 05 July 2018
12. How AI startup ThirdWatch is keeping an eye on and preventing online fraud through
Mitra, Yourstory, 10 December 2017
28
Application of
AI in the financial
services sector
With digital transformation and customer experience
at the forefront, financial institutions are looking at AI
solutions to deliver superior customer experiences,
reduce costs and unlock new revenue streams.
They are either developing in-house capabilities or
forming partnerships with fintech players to leverage
the technology.
As per a NASSCOM-CMR survey (Artificial Intelligence
for Banking, Financial Services and Insurance Sector,
2018) on adoption of AI in financial services sector in
India, the key objective as per financial institutions
is to offer enhanced customer experience, followed
by automation of back-end business processes, and
effective compliance and risk management.16
AI is utilised across front, mid and back office
segments, with existing and potential uses cases
ranging from customer services, targeted sales and
marketing, smart automation of manual intensive
processes, and compliance and risk management.
As per our internal analysis conducted with

leading financial service players, the highest
impact of AI applications is envisaged on the
business processes related to the front office.
16. Artificial Intelligence for Banking, Financial Services & Insurance sector,
NASSCOM, Accessed Date, 29 August 2018
The following framework illustrates how the aggregated ecosystem capabilities would drive automation across
the financial value chain leveraging AI applications.
Creation of next generation AI model in financial services
Aggregation of Ecosystem pillars

Fintech Developer Financial Technology
Regulators
companies community institutions vendors
Front office Middle office Back office
Sales and Distribution Risk Management AML

Banks • Cross sell and Upsell • Underwriting • Reducing false positives
• Customer segmentation Automation • Intelligent customer and

• Portfolio Risk transaction segmentation
• Product recommendation
Analysis
• Customer Churn Analysis
Insurance • Claims
• Targeted Distribution
Forecasting and
• Customer behavior analysis Investigation
Microfinance
Customer Operations Fraud Reporting and MIS
Management
• Chatbots for higher • Invoice automation
productivity, query • Fraud Detection • Smart Accounting
NBFCs resolution and Investigation
• Intelligent document check
• E-KYC- customer • Anomaly
• Smart reconciliation, audit
onboarding Prediction
trail, variance analysis
• Portfolio Management
Capital • Customer Servicing
Markets
Product and Solutions Compliance Management
• Product Pricing • Image recognition to
High • Personalised Offerings digitise documents
Impact • Financial Advisory • Automate legal disclaimers
Medium • Intelligent text extraction
Impact
Core engines
Aggregator Trading Advisory Transaction

Platform Platform Engines Platforms
AI Tools to Create Business Intelligence
Machine Image Machine Speech/Text

NLP Robotics RPA
Vision Recognition Learning Recognition
30
Availability of computing power, cloud services, Such symbiotic collaborations between the ecosystem
digitalisation agenda of the government and evolving players will provide opportunities to deploy AI
regulations around open banking would lead to the technologies in financial services functions and mature
rapid adoption of AI led automation across the financial from using AI in low impact rule-based processes to
services value chain. high impact cognitive and predictive processes.
One of the fintech startups, Gyandhan is enabling Regulations governing the privacy and security of
the education funding using AI driven models to data, policy initiatives and talent infrastructure will
underwrite large ticket education loans for students by further shape the ability of financial and non-financial
predicting the employability score (Gyandhan Score)17 institutions to utilise AI.
Large technology players are developing their AI
platforms and providing access to open source
libraries. Meanwhile, smaller AI technology companies
are contributing significantly by developing targeted
solutions for the financial services sector. The
effectiveness of aggregation capabilities across the
ecosystem players to drive front-to-back adoption of
AI technologies can be a key value differentiator.
17. Education loans marketplace GyanDhan raises money from Sundaram

Finance, The Economic Times, 05 July 2017; Match-making between
knowledge and money, BusinessLine, 11 December 2017
The future of financial services with AI

AI will prove to be a major driving force in years to While AI technologies have the potential to transform
come in the financial industry and play a significant role the Indian financial services sector, incumbents
in augmenting strategy and business decision making. will have to counter challenges related to legacy
The financial services sector is expected to embrace IT systems by adapting to different regulatory and
AI-led technologies to reap its benefits and evolve with compliance standards across the globe such as the
changing needs. GDPR; transforming front and back office systems;
and understanding the ROI impact to ensure maximum
customer satisfaction.
KPMG in India’s CEO Outlook 2018 survey
indicates that 94 per cent of CEOs look at
technology disruption as an opportunity
and 54 per cent CEOs have already begun
implementing artificial intelligence for
specific processes.
AI integration in back-office processes may still be easy

due to few stakeholders involved, however its effect on
employees needs to be addressed with care. Back-
office AI deployments also need to converge other
prerequisites such as global regulatory and compliance
standards (for example GDPR) and a ‘zero-fraud’
architecture.
In the front-office processes, integration of AI is likely
to attract bigger challenges that involve correctly
educating the staff, correctly educating the customers
and having a ‘zero-error’ user interface.
Financial organisations that are able to achieve both
‘zero-fraud’ and ‘zero-error’ in their AI, automation
and digital infrastructure are likely to be role-models
and leaders.
In a country like India, where the unbanked
population is yet to be financially included, an AI
interface plays a huge role in defining their inclusion
in the financial world.
32
Blockchain —
enabling a
distributed
ledger
ecosystem
in financial
services
34
Introduction
Blockchain utilises decentralised storage for recording data records. Its characteristics have eventually
all peer-to-peer transaction data in the form of blocks. resulted in an increased interest from the
It preserves old blocks and simultaneously adds new financial institutions.
blocks, making it nearly impossible to manipulate
Since then, the financial services sector has seen
documents, transactions and any other information.
major traction in blockchain applications, such as
Blockchain, which is also the underlying technology
know-your-customer (KYC), anti-money laundering
of all cryptocurrencies, is a secure, transparent and
(AML), trade surveillance, settlement and clearing,
decentralised database that drives efficiency and
smart assets, and collateral management.
immutability and brings in unanimity in organisations’
Evolution of blockchain01,02
2014-2015
2012-2014 • FS firms, regulators 2016-2017

and VCs got
• Rise of Bitcoin interested and • Pilots by Financial
2008-2012 invested in blockchain 2018 onwards
exchanges and Services (FS) firms
Bitcoin based • Explosion of use • Improvement in
• Emergence startups cases in BFSI • Consortiums will
of Bitcoin core scalability be instrumental in
• Currency transfer • Announcement issues created defining protocols and
• Deployment of and digital of consortiums to more possible use
cryptocurrency in common standards
payment systems accelerate adoption cases beyond FS
application related emerged based and set common such as supply • Intersection of
to cash on blockchain standards chain management, blockchain based
healthcare, music smart contracts,
• Smart contracts IoT, advanced AI
emerged industry and so on
leading to new
• Fintechs accelerated business models
investments to
build capabilities • Rise of Initial coin
around blockchain offerings (ICO’s) and
implementation Unicorns among
blockchain startups
While interest in cryptocurrencies is still disorderly, • 14 per cent03 of the banks and other financial
the interest in blockchain has increased largely. institutions have successfully deployed a
Global financial institutions spend about USD1.7 production blockchain application in 2017.
billion03 annually on blockchain and are moving
In India, blockchain gained visibility in 2016.
beyond the proof-of-concept stage to commercially
Consequently, financial institutions and fintechs
deployable solutions.
have started investing heavily in the technology.
• The blockchain budget of global banking and capital Within the next 5 years04, Blockchain has a potential
market firms increased by 67 per cent in 2017, to create value to the tune of USD5 billion in India
with one in ten firms reporting budget in excess of across all sectors.
USD10 million03.
01. The evolution of blockchain throughout the years, CoinOps, 14 November 2017 03. Financial services industry spends USD1.7 billion on blockchain, Greenwich
02. The technology behind bitcoin is only halfway through its evolution, Business Insider, Associates, 12 June 2018
12 January 2018 04. Blockchain can add USD5 billion to Indian economy in 5 years: NASSCOM official,
Business Standard, 27 July 2018
Areas of transformation in financial services

The financial services industry has been evolving frauds by exploiting the potential of blockchain. Its
constantly with changing regulations, new entrants intervention has led to emergence of multiple use
that is fintechs, increasing competition and rising cases across financial services, which will help
consumer expectations. Financial services are mitigate current challenges.
automating manual processes and minimising the
Potential areas Present challenges Benefits from blockchain
International High cross-border transaction fee Shorter settlement time reduces the
funds transfer cost as well as foreign exchange risk
Trade Executing a letter of credit is a slow, Automate payment process,

finance paper-based process taking a week elimination of intermediaries and
to complete instruments such as LC
Know your High KYC costs, KYC checks Industry-wide customer registry to
customer performed individually in different facilitate the encrypted transmission
financial institutions of customer data
Capital market Data reconciliation, high costs, long Secured and reduced
trading transaction times and operational risks processing time
Manual Maintaining of different account books Automate with trusted consolidation

accounting in one data model
Paper Checked, confirmed and forwarded by Bill-free transactions in conjunction

invoices lengthy manual processes with the use of smart contracts
Claims Lengthy and complicated process Automate the steps involved

management requiring verification from multiple from coverage verification, claims
intermediaries before a payment can validation, and, in the case of an auto
be made to the claimant insurance claim, loss determination
36
Beyond the hype – the current scenario

Blockchain has surpassed a phase of being a mere number of parties that are now increasingly getting
concept, to one where blockchain based solutions are involved in building a sustainable ecosystem for this
being deployed by banks, exchanges and insurance new-age technology.
players. These solutions have attracted the eyes of a
Blockchain ecosystem players for financial services
Global banks, insurance Governments across the

players and exchanges world are actively trying
are exploring blockchain to build a conducive
technology since 2014 environment for all the
ecosystem players
BFSI players Government
Large technology players Regulations are still in

and new age start-ups nascent stages across the
are collaborating with globe, but the general opinion
legacy players for testing of policy makers is positive
blockchain use cases
Technology
Regulators
players
Financial institutions Financial institutions and blockchain companies are

collaborating to standardise and resolve issues around
Since 2014, financial services has been one of the data security, compliance, operational inefficiency and
first sectors worldwide to carry proofs-of-concepts to high costs.
test blockchain. Payments, clearing and settlement,
trade finance, and identity management are key
services currently being explored for the application Financial Institutions are exploring multiple
of blockchain to resolve inherent system complexities blockchain models, which include the following:
and reduce fraud risks. Many banking, insurance and • Invest in blockchain fintech startups: Ever
capital market players have started implementing the since 2014, as many as 50 financial institutions
technology to strengthen their internal processes have plunged in supporting blockchain startups
before applying it on a larger scale for commercial use. • Incubate blockchain startups: Major global
Blockchain development in financial services started banks and financial intermediaries work with
about four years ago. Since then, the banking sector startups in their blockchain centres of excellence
currently is closest to being production-ready — • Collaborate with fintech companies: Nearly all
moving from adopting small niche solutions and blockchain-based proofs of concept have been
pilots to larger adoptions in a phased manner. Even developed in collaboration with fintechs
though pilots have not entered the production stage, • Develop in-house: Financial services have
there are many ongoing experiments especially in started to construct their own blockchain-based
payments and cross-border trading. Insurance players solutions through in-house efforts
are conducting several pilots and trials, especially for
• Form consortium: Financial services have
claims management and workflow improvements.
created consortia to co-develop solutions,
Furthermore, securities exchanges and clearing houses
distribute potential investment costs and to
are testing blockchain to reduce time taken for trade
establish standards.
settlement and reconciliation and remove inefficiencies
in processes such as proxy voting.
Indian scenario Government

Blockchain development in Indian financial services Governments worldwide are following a multi-pronged
is in line with its global counterparts. Many industry- approach to enable the use of blockchain. Few
specific consortia are prototyping blockchain for governments are actively participating with ecosystem
numerous use cases. Players are also joining players and are trying to build a sustainable ecosystem.
international consortia to gain exposure. Apart from According to the World Economic Forum (2016, 2017)
the banking sector, many insurance players and a reports, more than 30 governments and 90 central
leading Indian stock exchange are also exploring banks are investing in blockchain05.
blockchain. Since 2016, trade finance, cross-border
payments, bill discounting, digital identity and The U.S., Canada, Australia and China are prominent
supply chain financing have been the top blockchain economies where respective governments have been
application areas in India. able to establish blockchain hubs. They are followed
closely by other jurisdictions such as Japan, Korea,
Malta, Gibraltar, and Lichtenstein06.
Major blockchain-based solutions development worldwide05,06,07
Europe
China
• 23 European countries
established European Blockchain • One of the banks
Canada Partnership is implementing
• ETF for blockchain technologies • European Commission launched a production
issued on Stock Exchange EU Blockchain Observatory and blockchain
Forum with investment plans of system to provide
• Government utilises blockchain over EUR300 million by 2020 syndicated lending
technology to track and publish capabilities
information about grant funding
Japan
• Announced a
blockchain-based
data sharing platform
for the trade industry
U.S. South Korea

• Stock exchange
• Announced
has issued ETF’s of
investment of over
blockchain technology
USD200 million in
companies
blockchain initiatives
by 2022
Switzerland
Australia
• Accepts digital currency in
payment of city fees • A stock exchange in Australia has
• Added bitcoin as a means implemented a blockchain-based
of paying small amounts solution to replace its current
up to CHF200 post-settlements process
05. World Economic Forum report- 2016,2017

06. Where are the world’s blockchain hubs actually located?, Cryptodisrupt, 15 July 2018
07. Internal KPMG Analysis
38
Indian scenario –– Andhra Pradesh government is focusing on

building a robust blockchain ecosystem and
In India, the government envisions blockchain has also partnered with a New York-based
technology to be used in areas such as land records, blockchain software technology company.
supply chain management, identity management, The partnership looks promising for its Fintech
benefit distribution, educational certificates, power Valley Vizag initiative12.
distribution and cross border finance. In that light the
government is taking many steps such as providing • The Government of Chhatisgarh has taken initiatives
infrastructure and institutions to help in developing to deliver proactive e-governance by leveraging
blockchain skills, piloting the technology in its internal blockchain for a pilot in identity management,
systems, and developing interoperable platforms. e-health records, land records management, in
collaboration with NITI Aayog13
Skill development and educational initiatives
• Many other states such as Maharashtra, Karnataka
• NASSCOM collaborated with a research institute and Telangana are also gearing up for blockchain in
in Canada08 their governance.
• Blockchain hackathon organised by Government
of Karnataka09 Platform development initiatives
• Blockchain academy set-up in Kerala10. • Niti Aayog has launched IndiaChain14, a blockchain
project similar to Unified Payments Interface. It is
Pilot for government departments interoperable platform for both the government and
• Andhra Pradesh has become the first Indian state to private entities to build scalable blockchain solutions.
start testing blockchain for governance. It has piloted An aim of the project is to develop a system that
two key projects: (1) Managing land records to minimises frauds, speeds up enforcement of
curb property-related disputes and (2) Streamlining contracts and increases transparency15.
vehicle registrations. The state plans to implement
blockchain across its entire administration11
IndiaChain proof-of-concept use cases
Benefit/ Identity Supply

Land Educational
Agriculture power management chain Banking
Records certificates
distribution management
Curb property- The government Prevent ration IndiaChain Crops and the School and Banks can create
related disputes is generating and electricity will be linked vegetables can college leaving sidechains which
which occur due soil health cards loss by bringing to IndiaStack, be tracked and certificates will can be linked to
to mismatch for agricultural transparency unique identity tagged once be included, their domains
of property land. Every and project Aadhaar it reaches the which see a linking back to
dimensions, patch of land accountability which will market high degree IndiaChain
multiple stake will be digitised to the enable know of forging and
claims, etc. in terms of government your customer duplication
quality of land, schemes (KYC) data on
crops grown, like Public IndiaChain
seasonality, etc. Distribution
System
08. Report on “NASSCOM signs MOU with Blockchain Research Institute (BRI) to 13. Chhattisgarh successfully conducts its first Blockchain Grand Challenge, Your Story, 31
evangalize a blockchain ecosystem in India”, NASSCOM, 21 February 2018 August 2018
09. Blockchain and government of Karnataka- an emerging love story, Yourstory, 15 14. NITI Aayog initiates the blockchain effort, The United Service Institution of India, 02
February 2018 August 2018; BankChain, IndiaChain & India’s Tech Future, Tech Story, 29 June 2018;
NITI Aayog announces indiachain blockchain based UPI, Owlt Market, 28 June 2018;
10. Kerala to set up blockchain academy, business standard, 18 january 2018
What is IndiaChain: a blockchain system that could soon be the heart of governance in
11. this indian City is embracing Blockchain Technology- - Here’s Why, Forbes, 5 March India?, Business Insider, 21 June 2018
2018
15. Ethereum co-founder’s startup to make blockchain prototypes for Niti Aayog, Tech
12. Andhra Pradesh govt. signs MOU for blockchain innovation in the state, Inc42, 6 March Circle, 17 April 2018
2018
Regulators
Blockchain regulations are still at a nascent stage. –– The global body for standardisation established
However, regulatory bodies are showing increased Technical Committee 307 to develop standards
interest in blockchain. While few countries’ regulatory for DLT and blockchain. Representatives from
bodies have launched blockchain frameworks, more than 45 countries attended the inaugural
many countries are still interpreting the technology meeting of the Technical Committee. Of these, 25
to develop a formal framework. Despite the slow participating countries designated ISO/AWI 22739
progress in formulating regulations, global policy as the first standard to be developed to establish
makers are positive about blockchain. uniform terminology and concept description17.
Regulatory landscape16 Indian scenario

Government of India and the RBI are formulating
regulations for blockchain. In the 2018-19 budget,
Regulations - Regulations - the Ministry of Finance said that it planned to utilise
In Place Under Way blockchain gradually and safely.
• The RBI has formed a new unit to use emerging
technologies such as cryptocurrency, blockchain
Estonia Netherlands and AI. This new unit will research, draft rules and
Switzerland Canada supervise new emerging technologies in the future
Malta Bermuda
U.S. - California, India • The Institute for Development and Research in
Vermont, Arizona, South Korea Banking Technology (IDRBT), RBI’s technology
Maine, Nevada, research arm along with other stakeholders has
Hawaii, Illinois, published a whitepaper18 detailing the concerns,
North Dakota global experiences and possible areas of adoption
of blockchain in the financial services sector in
India. The whitepaper highlights several advantages
of blockchain, such as cost savings, efficiency,
and transparency
Some of the steps taken by global regulatory
bodies include: • IDRBT has also developed a proof-of-concept on
• Zug, Switzerland hosts several blockchain startups blockchain’s applicability in trade finance along with
and offers flexible taxation. The city provides prominent government bodies, leading private and
legislative protection from the negative aspects of public sector banks and an emerging fintech firm.
crypto but encourages blockchain companies to The proof-of-concept enables automation of Letter
increase crypto transactions. of Credit (LC). It has real-time automated tools for
AML, and other customs and payments activities18
• Many central banks have stepped up their efforts
towards digitising their fiat currency to leverage • The RBI has also formed an inter-departmental
blockchain’s underlying benefits group to study and provide guidance on feasibility
to introduce fiat digital currency, backed by
• Various international organisations established
blockchain19.
standards for blockchain technology and
development of Digital Ledger Technology:
–– At the G20 summit, members countries agreed
to cooperate and ease regulatory laws on
cryptocurrencies. This is in line with the view that
blockchain can disrupt industries and cooperation
among countries can benefit controlled growth of
this sector.
16. Blockchain technology & Malta’s regulatory framework, business matters magazine, 3 17. The year of blockchain: global legal framework begins to take form, White Case, 27
august 2018; california Blockchain Bill is Finalized in State Legislature, Cryptodisrupt, February 2018
30 August 2018; Canada postpones plans for crypto regulation until late 2019, Coin 18. Whitepaper on “Applications of Blockchain Technology to Banking and Financial Sector
Geek, 30 August 2018; US States working on blockchain legislation in 2017, Brave New in India”, IDRBT, January 2017
Coin, 02 April 2017
19. RBI explores feasibility of launching ‘fiat’ digital currency, Indian Express, 6 April 2018
40
Blockchain technology players

There were 115 ‘pure’ blockchain startups worldwide
(excluding cryptocurrency-focused firms, consulting
firms and firms, which were engaged in blockchain
development before 2012) between 2013 and 201720.
Most of these startups operate in areas such as peer-
to-peer (P2P) payments, lending, remittance, cross-
border foreign exchange (FX) transactions, proof of
identity, digital security trading and smart contracts.
Apart from startups, blockchain has also attracted
many large and seasoned technology players. These
players have moved beyond their traditional product
portfolio to include blockchain-based solutions.
Fintech players, once seen as disruptors, are now

becoming strategic partners and collaborating with
financial institutions to test blockchain-based
solutions. Financial institutions are funding startups
and forming partnerships with fintech innovators to
build efficient, cost effective and competitive
platforms and applications.
One of the startups, Monetago, has designed a

blockchain solution for TReDS exchange that records
hashed invoice data in order to avoid double financing.21
Another fintech startup Snapper Technologies’
blockchain solution addresses some of the persistent
challenges faced by the real estate industry22.
India is embarking on a fintech revolution with

blockchain startups having raised over USD5.3 million
between January 2016 and April 201823. A lot of
this traction is owed to the Indian government’s
constant efforts towards building India as a
world-class digital hub.
Fintech Valley Vizag was successful in raising

USD900 million and creating more than 5,500 jobs
until December 201724. The government, academia,
entrepreneurs, and investors are hosting blockchain,
data analytics, artificial intelligence, machine learning,
cyber security and cloud computing as a part of this
initiative. Banking Financial Services and Insurance
Use Case Repository Program and Fintech Valley
Accelerator Program in Vizag25 were launched by
the state government in 2017 to develop fintech
infrastructure in India.
20. Blockchain Technology and Corporate Governance, OECD, 6 June 2018

21. Blockchain solution to prevent trade finance fraud goes live in India, Global
Trade Review, 03 April 2018
22. Snapper Technologies - Transforming the Business Ecosystem through
Blockchain Technology, CEI Review, 2017
23. Domestic blockchain startups mop up over USD5.3 million since 2016,
Business Standard, 20 June 2018
24. The Indian city is embracing blockchain technology- - here’s why, Forbes, 5
March 2018
25. Andhra Pradesh govt. wants Vizag to act as global hub for fintech firms,
Business Standard, 5 September 2017
Critical success factors in blockchain adoption

Blockchain is still a nascent technology and the use over blockchain, highly regulated industries such
cases will principally come from the countries that as financial services need to develop common
have adopted it such as Estonia, Lithuania, and regulatory standards.
Sweden26. The Indian regulatory agencies will evolve
In the financial sector, blockchain will have to
as they interact continuously with countries like
handle large data sets, therefore, scalability will
Singapore27 and Australia28 that are in process of
be of paramount importance. With rapid growth of
implementing blockchain.
blockchain, demand for blockchain experts is bound
Financial institutions that plan to utilise blockchain have to increase.
to comply with privacy laws and ensure data safety. As
We believe the following are critical success factors
many products and services are likely to be transacted
in blockchain adoption:
Governance Regulation Consortia Education

Need of a governing Need for globally Need for industry Need for government
body to monitor acknowledged participants to work and organisations
the access rights regulatory standards in cohesion designing to build blockchain
and designate the that promote the use solutions specific expertise by setting up
responsibility of of blockchain in a to asset classes and university programmes
maintaining blockchain controlled manner processes and organising events
applications like hackathons
Scalability Align emerging Security Cost benefit

Need for industry
technologies Need for financial
analysis
participants to factor Need to align institutions to conduct Need for institutions
in blockchain’s blockchain with other a comprehensive to perform detailed
long-term aspects emerging technologies security check of their cost benefit analysis,
and build scalable to maximise and foster blockchain solutions to as initial investments
sustainable solutions an efficient digital ensure their resilience can be significant
ecosystem in commercial use
26. Blockchain being used in banking, contracts, The Hindu, 28 May 2018
27. Singapore proposes regulatory boost for decentralized exchanges, Coindesk,
23 May 2018
28. Report on “Roadmap for blockchain standards”, Standards Australia, March 2017
42
What awaits us in the near future?

Gartner forecasted that blockchain will generate an but convergence of technologies should help players
annual business value of more than USD3 trillion customise solutions. For example, in usage-based
by 203029. However like any technology innovation, insurance, IoT sensors collect data and insurance
blockchain will evolve with new discoveries. For companies access usage patterns on a secure
example, the internet is continues to evolve and has blockchain. A blockchain-based marketplace that
new regulations after many decades of existence. connects AI companies and data providers is
another example.
Artificial intelligence (AI), internet of things (IoT), and
robotic process automation (RPA) technologies have Convergence of technologies can disrupt multiple
gained relevance over time and represent different business models. Thus, it is on the radar of many
aspects of the data world. However, their use is governments and companies. In future, we may see
restricted due to their inherent vulnerability to security fully operationalised systems with enterprise-ready
risks owing to the internet. With the emergence of blockchain solutions, blockchain-based cities, standard
blockchain, many such issues can be resolved by and frictionless global identity systems and many other
creating indexed records that are tamper proof and comprehensive solutions that are likely to directly
referenceable without censorship. The emergence of benefit the financial services industry.
new technologies do not present complete solutions,
29. Report on “Forecast: Blockchain business value, worldwide, 2017-2030”, Gartner, 2

March 2017
Concurrent
adoption of
technologies
44
The next wave of innovation in banking and financial A next generation customer journey illustrates how the
services industry is set to reshape the industry entire ecosystem can collaborate to assist a customer
and bring in profound changes in the way business in mortgage buying process and create a differentiated
strategies shall be defined. The change would be experience in the journey as highlighted in the exhibit
largely driven by consolidation, collaboration, and ‘Next generation open aggregator platform’ leveraging
convergence with fintech. AI , blockchain and open frameworks. Here’s how the
process works:
Many of the technology elements have crossed the
initial level of piloting and the time is right to stitch the • Customer can log in to the real estate aggregator
components and create frameworks for concurrent platform and view several options. The platform
adoption of these technologies. proactively assesses the profile of the customer
on basis of quick data entry done and through
We believe that open banking, AI and blockchain
direct linkages with the financial institutions. The
have the potential to create the next wave in financial
platform has access to the financial information of
services. The adoption of these technologies will
the customers, government databases, land registry
enable financial institutions to redefine the business
data, and so on
strategy, achieve deeper level of personalisation and
disintermediate the financial industry. • AI-driven recommendation engine provides
suggestions to customers such as best offers and
Following are some of the emerging trends which we
housing options, what other people are purchasing,
foresee would drive this industry:
simulation tool to analyse future cash flows
Open platforms and aggregated • All the processing can be done through the platform
enabled by the electronic land registry which acts
business models as a single source of open information accessible by
Adoption of open banking standards and API driven the registered institutions
technology models have enabled collection of relevant • All the records or transactions are smart contract-
data. This data is being used extensively to build driven, and stored on a permissioned ledger secured
platforms that enables interactions between the through cryptography.
consumers and suppliers to create business value.
In near future, we are likely to see financial institutions
Financial services is the latest entrant to foray in the adopting a mix of above strategies and bring
open platforms business, with multiple institutions incremental revenues driven by lower operational and
looking for alternate revenue streams and designing customer acquisitions costs.
sustainable business models to leverage the non-
financial ecosystem. The financial institutions are
adopting a two-fold approach:
a. Acting as a platform provider and bringing the
ecosystem together
b. Participating as a service provider on existing
platform and adding value.
In near future, we are likely to see financial institutions
adopting a mix of above strategies and bring
incremental revenues driven by lower operational
and customer acquisitions costs.
Redefinition of the customer journeys

across all the digital touch points
Customer expectations are changing every day and
customers are looking for holistic solutions. Financial
institutions are facing challenges to keep up with
the needs of its customers and provide them with
personalised, omni channel, services and products
in an effective manner. The future is likely to be
about customer oriented use cases defined on the
concurrent framework using blockchain, AI and
open banking.
Next generation open aggregator platform
<< Individual verification

through Blockchain >>
Fetch property
attributes Listing of the property 1
<< Open platform where

listed property details can
Aggregator platform be accessed >> Seller
4
House details:
• General valuation
agreement on transaction terms
• Ownership details
• Financing details
• Technical report
Property Finalisation and
Transaction details
Digital
land
record
Requirement listing 2
and request for options
<< AI driven
recommendations >>
Buyer Buyer bank
Customer Creditworthiness
7
Transaction
and Eligibility Check
execution
(e-Contract) << AI led engine
Authorisation to
for credit 3
disburse loan
and eligibility
check >>
<< Electronic
data records
over blockchain
secured through
Cryptography >> 5 e-Contract execution
6
Access rights to the pool of property
data from centralised register
Lender
Customer Credit Assessment and verification using

Blockchain <<Smart Contract based
assessment and verification >>
46
AI-driven business and operating models The financial superstore would act as a one stop
solution for all financial product and services. For
AI can unleash its real potential in confluence with large setting these superstores the three basic decisions
data sets. Adoption of open API-led business models which have to be considered are selection of the value
could lead to enhanced use of artificial intelligence. chain segments to operate, product/service mix to
With the acceptance of open API in the near future, be offered and onboarding the right product/service
we might see financial institutions adopting innovative providers. The superstore would be supplemented
methodologies to incorporate emerging technology for with linkages to the government platforms such as
streamlining its current business processes. GSTIN, ITR and government led e-marketplaces.
We believe the following parameters are likely to These superstores will serve an excellent source of
be adopted by financial institutions for an enhanced authentic data and would be a progressive step in
customer experience and incremental revenue: direction of collaboration amongst financial institutions
and government to develop open frameworks such as
‘Public Credit Registry’.
Reduced Enhanced Amalgamation of authentic financial information of an
operational cost cross selling end user with technology will lead to assessment of
behavioural patterns and guestimation of solutions,
Performing process With the abundance products, informative tips and so on to the end user.
reengineering and of data, customer
redefining traditional behavioural pattern- In the coming years with open digital economy and
methodologies are based selling services the increased maturity level of technologies, financial
imperative steps to could be encouraged. institutions would be capable of moving to models
change. Financial Illustratively building which are highly personalised in nature, and with a
Institutions can chatbots, processing capability to collaborate with multiple applications
optimise their natural language resulting in a seamless customer journey.
operations leading to and using predictive
enhanced customer analytics can develop It is expected that with the advent of new digital
satisfaction and reduced an algorithm to give technologies, the boundaries between financial
operational cost product suggestions institutions and fintech companies would diminish,
and the ecosystem would move towards a more
collaborative approach.
Rise of financial superstore

leveraging product and government
platforms and interoperable
payments structures
The future would see emergence of financial
superstore which would provide e-platforms to bring
multiple private and government entities together
and create value across the traditional financial
processes. The financial superstore would serve
two basic objectives of matching the buyer with the
seller and facilitating exchange of goods and services.
With the availability of internet enabled smartphone
and the convenience of options at doorstep, financial
superstore will gain lot of prominence in the
current ecosystem.
About About
KPMG in India NASSCOM
KPMG in India, a professional services firm, NASSCOM is the industry association
is the Indian member firm affiliated with for the IT-BPM sector in India. A not-for-
KPMG International and was established in profit organization funded by the industry,
September 1993. Our professionals leverage its objective is to build a growth led and
the global network of firms, providing detailed sustainable technology and business services
knowledge of local laws, regulations, markets sector in the country. Established in 1988,
and competition. KPMG has offices across NASSCOM’s membership has grown over
India in Ahmedabad, Bengaluru, Chandigarh, the years and currently stands at over 2,500.
Chennai, Gurugram, Hyderabad, Jaipur, Kochi, These companies represent 95 percent of
Kolkata, Mumbai, Noida, Pune, Vadodara and industry revenues and have enabled the
Vijayawada. association to spearhead initiatives and
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and globally. NASSCOM members are active
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knowledge of global and local industries
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environment. nasscom.in
KPMG.com/in
48
Acknowledgements
Shravan Shetty Rakesh Kumar
Shankar Gyanchandani Nirmala Balakrishnan
Ashit Gandotra Nemesisa Ujjain
Kriti Sharan Shivam Sareen
Shivika Sethi
Noopur Dogra
Radhika Todi
Omkar Sawant
Nisha Fernandes
Reema Pawa
Shveta Pednekar
Shilpa Bhoir
50
contacts: contact:
Mritunjay Kapur Nasscom
National Head Plot 7 to 10, Sector 125,
Markets and Strategy Noida 210303, India
Head - Technology, Media and Telecom T: +91 120 499 0111
T: +91 124 307 4797 E: research@nasscom.in
E: mritunjay@kpmg.com
Naresh Makhijani nasscom.in

Partner and Head
Financial Services
T: +91 22 3989 6000
E: nareshmakhijani@kpmg.com
Gayathri Parthasarathy
Head
Financial Services - Advisory
T: +91 98190 29924
E: gparthasarathy@kpmg.com
Manish Jain
Partner
Digital and Fintech - Management Consulting
T: +91 98867 69023
E: manishjain5@kpmg.com
kpmg.com/in
Follow us on:
kpmg.com/in/socialmedia
This report has been jointly developed by KPMG in India and NASSCOM 10,000 Startups.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular
individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such
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The views and opinions expressed herein are those of the persons quoted and do not necessarily represent the views and
opinions of KPMG in India.
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms
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Fintech in India –

Fintech ecosystems have evolved banking, artificial intelligence and

01. The Pulse of Fintech 2018, KPMG, 31 July 2018

• In 2018, global AI spending Open banking

02. Worldwide spending on cognitive and artificial intelligence systems

Closed banking Open banking

Other banks Payment

Introduction to open banking

Open banking architecture

Ecosystem that provides Financial institutions,

Banking data access What How Transfer information

Increase Accessibility Increase Third parties

New entrants such

Innovative delivery models Personalised services based Foundation for

The gateway to monetise the Open Banking Ecosystem

Bank Proprietary Platform Fintech Platform

The maturity of sharing APIs with other

Initially, financial institutions built APIs for their own

Adoption of open banking across the globe01

India Reviewed, Feb 2018

India leaps towards open digital economy

On-demand Functions What it Covers

Consent Access fees

Department of Digital locker

Unique Identification Aadhaar

An upsurge is evident as a result of these reforms and

02. Statistics, India Stack website, accessed on 03 September 2018

Adoption of government initiatives

800 eSignature and

• 11.2 mn businesses • Facilitated INR31.5 million

UPI to UPI 2.0 Journey08

NBFC account aggregation

Financial information provider (FIP) and financial information user (FIU)

Government Equity Mutual fund

Exchange Indian Collective Alternate Insurance

Traditional financial institutions

Financial services firms’ open banking delivery models

A Bengaluru-based An Indian bank tied-up

Banks are emerging as accelerators

Building a strategy for

• Specialist with experience

Connecting the dots

Platforms are mere dots in the larger image

If only these platforms communicate and

Connecting the dots is a beloved childhood game,

Boosting the ecosystem to foster collaboration and innovation

e-Stamp e-Way bill GeM TReDS

GSTN Tax BBPS

• Common and shared • Mandatory online • Integrated and

Connecting Ecosystem to foster collaboration and Innovation

Account Aggregator Faster Credit Financing

Information Database Wider financing options

Strong Supply-chain Quicker Payments

Catering to an elevated service experience

Big technology firms influencing/ Liquidity

• Big technological companies such • Enable viewing multiple bank

Flow-based Wealth management

• Higher turnaround time and high • Although the relationship manager

Public credit registry

Electronic registry Consent manager

Core Credit Creditors

Information Utility (IUs)

Secondary Information Base

PCR-SEBI sub sys: PCR-Legal Database