Post on 26-Jan-2017
Business Disruptions in India
By- Chitresh JhawarBurhanuddin Ratlamwala
FLOW OF PRESENTATION
• Meaning Of Business Disruption
• Existing Disrupted Industries
• On Going Business Disruption
• Future Business Disruptions
BUSINESS DISRUPTIONNEW MARKET
NEW SET OF CUSTOMERS EVENTUALLY DISRUPT
VALUE NETWORK
DISRUPTIONS WHICH HAVE ALREADY HAPPENED
Worlds most valuable retailer has no inventory
Worlds largest movie house owns no cinema
Worlds largest messaging company has only 55 employees
World’s largest accommodation provider owns no real estate
World’s largest taxi company owns no taxi
BUSINESS DISRUPTION IN BANKING
MEGA TRENDS TRANSFORMING BANKING INDUSTRY
INDIA GOING DIGITAL EMERGENCE OF NEXTGEN PAYMENT PROVIDERS
FAVOURABLE REGULATORY ENVIORNMENT
INDIA GOING DIGITAL
INDIA BECOMING A DIGITAL COUNTRY
TECHNOLOGY REVOLUTION• Powerful processor• Sustainable memory• High Resolution camera• Barcode scanning• GPS geocoding• NFC technologies• E-commerce• Social networking• Banking apps
Practically most of the things
MASSIVE GROWTH IN DIGITAL TRANSACTION
• DIGITAL TRANSACTION GROWTH BY 50%
• BRANCH BASED TRANSACTION REDUCED BY 7%
EMERGENCE OF FINTECH COMPANIES
EMERGENCE OF NEXTGEN PAYMENT PROVIDERS
BANK LED TELECO LED PREPAID/WALLET
E-COMM/TECHPAYMENT BANKS
LENDING INNOVATIONS
SME LENDING
P2P LENDING
SMALL BANKS
SMALL AND MEDIUM-SIZED ENTERPRISES LENDING
• Short-term loans to purchase inventory, service new orders, or optimize cash cycles
Capital is supplied in the form of bank loans and overdrafts; leasing and hire-purchase arrangements; equity/corporate bond issues.
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SMEs contribute 45 % to our GDP as compared to 15 % by the corporate sector.
Eg. Amadeus Advisors Pvt Ltd, Zen Lefin Pvt Ltd
P2P LENDING• Lending money to individuals or businesses unsecured
personal loan
• Secured loans are sometimes offered through collateral
• Crowd sourcing
• Transaction value of USD 416m* in 2016
• CAGR 2016-2020 of 61.2 %*
• Type- Equity and Reward
• Eg. RangDe.org, Milaap social ventures, Kickstarter, ImpactGuru, Ketto.org * Source- Statista.com
SMALL BANKING
• Niche banks for small finance
• 100 crore capital
• To serve the rural market
• Example: Disha Microfin and Ujjivan financial
FAVOURABLE REGULATORY ENVIORNMENT
FAVOURABLE REGULATORY ENVIORNMENT
• KYC relaxation for small transaction
• Exemption from two factor authentication
• Aadhar making KYC easier
• Unified Payment Interface
• Bharat Bill Payment System
SHAPING THE CONSUMER BEHAVIOUR
PAPERLESS
CONVIENT
SIMPLE
FASTER
NO QUEUE
BOTTOM OF THE PYRAMID
USER FRIENDLY
CASHLESS
SMOOTH PROCESS
IMPACT ON THE ECONOMY
• New Opportunities• NEW Market And New
Players• Job creation• Example: PayTM
• Loss of market share• Public Debt• Example: Air India
• Reduction in plastic money
• Infrastructural shift• Airtel can go places
where SBI cannot
• Digitization of existing process
• Paradigm shift in employment
• Reduction in Black money
PROACTIVE APPROACH TO DEAL WITH DISRUPTION
COPING WITH DISRUPTION
GOVERNMENT REGULATIONS• Payment Banking• Crowd Funding• Small Banks
Limitations on the services to safeguard interest of existing banks
STRATEGIC PARTNERSHIP• PayTM with other banks• Share Technology by a start up and bank
EXISTING BANKS• HDFC Payzapp• Going Digital
BIG PLAYERS• Acquisition of small players• Stakes in start ups• Example : Nasper- Citrus Pay
FUTURE DISRUPTIONS
CLOUD COMPUTING
• Cost saving and usage based billing
• Higher level of data protection, fault
tolerance and disaster recovery
• Allows new product development to move
forward without capital investment
• Reduction in energy consumption and
carbon footprint
ADVANCED ROBOTICS• Automate current tasks and same
interaction as human
• Virtual workers
• Higher quality with improved
compliance/auditability
• Productivity boost will save up to 40% of the
time
• Processing cost will come down up to 80%
• Fast implementation of new processes
BIOMETRICS/IRIS AUTHENTICATION
• Aadhaar – Game changer
• NTT Docomo has launched IRIS
recognizing smartphones
• The amount to install biometric
recognition in smartphone to come
down
FACIAL RECOGNITION & VOICE BASED PAYMENT
• 10% search on Google was made
via voice in 2015
• No PIN or password required
• Allows aged and illiterate to access
and use easily
• Example:
- Alibaba- Facial recognition
- ING Netherlands- Voice
Recognition
CONTACTLESS PAYMENT
• Use of NFC or RIFD for transactions by
various cards or other devices
• No PIN or signature required resulting in
faster transactions
• MasterCard Canada observed 25% higher
spending by users through contactless cards
• Use of QR code technology by China
THANK YOU