Fintech innovations from india
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FinTech innovation in India: A cultural
perspective
Dr. Pavan Soni
Innovation Evangelist and Founder
Inflexion Point Consulting
www.InflexionPoint.net
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About Dr. Pavan Soni• PhD from IIM Bangalore (Corporate Strategy & Policy)
• Former Innovation Evangelist at Wipro (6 years)
• Only Indian to be shortlisted for the Financial Times and McKinsey Business
Book of the Year Award- 2016
• Bachelor of Engineering- MBM Engineering College Jodhpur (Branch Topper)
and PGDIE- NITIE Mumbai
• Recipient of ‘On-the-Job Achiever Award’- Lakshya- CII Mumbai in 2007 for
the work on Innovation
• Associated with ASSOCHEM, CII, NASSCOM, Bangalore Chamber of
Industry and Commerce, and Karnataka Knowledge Commission
• Columnist at YourStory, and People Matters
• Speaker at TEDx BITS Goa, SIBM Pune and HewlettPackardBangalore
• Coach at NSRCEL of IIM Bangalore and Founder Institute
• Mentor at UpGrad, Institute of Product Leadership, NumberNagar, and Budli
• Advisory Board member at Utilis Capital
READING | WRITING | TEACHING | COACHING
www.PavanSoni.com
linkedin.com/in/pavansoni
facebook.com/drpavansoni
@Pavan_Soni
youtube.com/user/innov6
www.PavanSoni.com 2
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Session objective
• Insights on innovation
• Building an Innovation Culture
• Creating the Blue Ocean
• Insights from startups
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Invention ≠ Innovation
4
Most Innovative Firms- 2016
Highest R&D spent- 2016
Most patents granted-2016
VolkswagenSamsungAmazonGoogle
IntelMicrosoft
RocheNovartis
J&J Toyota
AppleGoogle
Tesla MotorsMicrosoftAmazonNetflix
SamsungToyota
FacebookIBM
IBMSamsung
CanonIntel
GoogleQualcomm
General ElectricMicrosoft
LG Electronics TSMC
10/19/2017 Pavan Soni | www.PavanSoni.com |
Source: BCG, Booz & Co., USPTO
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10/19/2017 Pavan Soni, Innovation Evangelist 5
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10/19/2017 Pavan Soni, Innovation Evangelist 6
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10/19/2017 Pavan Soni, Innovation Evangelist 7
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R&D doesn’t impact performance
10/19/2017 Pavan Soni, Innovation Evangelist 8
Source: Strategy&
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The vocabulary
9
Creativity Novelty Utility +=
Level of operation= Individual or Teams
Innovation New concept Commercialization +=
Level of operation= Organization
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Inventors are not always innovators
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Incumbent Missed innovation Innovator Real loss in incumbent's market cap
% drop in incumbent's market cap
Est. gain in innovator's market cap
Time period
Yahoo! PageRank search Google $27 billion 60% $98 billion 2005-2012
HP Touch-screen tablets
Apple $43 billion 47% $258 billion 2010-2012
Nokia Touch-screen smartphones
Apple $95 billion 87% $195 billion 2007-2012
RIM Touch-screen smartphones
Apple $60 billion 90% $195 billion 2007-2012
Sony LCD screens Samsung $6 billion 23% $144 billion 1996-2006
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The process view of ‘Innovation’
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10/19/2017 Pavan Soni, Innovation Evangelist 12
Source: BCG
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10/19/2017 Pavan Soni, Innovation Evangelist 13Source: BCG
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10/19/2017 Pavan Soni, Innovation Evangelist 14
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10/19/2017 Pavan Soni, Innovation Evangelist 15
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Financial inclusion in Africa
www.PavanSoni.com 16
Consultative Group to Assist the Poor (CGAP) Report- September 2017
Source: CGAP Report
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www.PavanSoni.com 17Source: WEF
Gartner predicts that blockchain
will add $176 billion in business
value by 2025, and $3.1 trillion by
2030.
With more than 90 central banks
engaged in blockchain discussions
globally, more than 2500 patents
filed over the last three years,
and 80% of the banks predicted to
initiate blockchain and distributed
ledger technology projects by 2017
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Shaping an Innovation Culture
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www.PavanSoni.com
19
As of April 2017
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Tapping the mobile- the firsts
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Feb 2015
June 2014
Jan 2015
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Banking on Digital
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• IRA (Intelligent Robotic Assistant) for customer assistance • EVA addressing 2.7 million queries addressed in six months• DCC tracks 15,000 mentions per day & over 4.5 lac mentions
per month
Jan 2017
March 2017
August 2017
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Elephants can dance!
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✓ Branchless banking✓ Omni-channel✓ No employee customer
interaction✓ Linked to Aadhaar ✓ Apps + Internet + Mobile
About SBI:
▪ 210 years old▪ 550 million customers and more than 750 million accounts▪ 25,000 branches, 57,000+ ATMs and 500,000 PoS machines.
Jan 2017
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Startup incubation funding
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INR 200 crore startup fund
INR 3 crore funding for FinTech
“ It is not only the fintechs that are coming into banking, but
banking can also benefit from fintech. There may be one or
two areas where they can give us competition, but overall,
there could be several areas where they can help cross-sell
banks’ products.”
- SBI Chairman Arundhati Bhattacharya
June 2016
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Setting up Innovation Labs
Bangalore | June 2016
✓ First in the industry ✓ 3 months incubation with Zone Startups✓ Focus on block-chain, artificial intelligence,
mobility and cloud✓ Funding and incubation assistance
In August 2016, Kotak Bank starts Innovation Lab in
Bangalore
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Hackathons and digital challenges
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The top three winners stand a chance to win prizes
over Rs.20 lakh along with a potential engagement
opportunity with ICICI Bank.
2000 participants in 2016
February 2016
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Mass adoption of AI/ Automation
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✓ 200 business processes
✓ 60% reduction in
response time
✓ 100% increase in
accuracy
September 2016
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Increasing access to credit
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✓Rs. 20,000 for 30 days✓ 50 parameters to build a credit profile.✓Participation in e-Commerce boom ✓ Flow based lending
September 2017
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First bank to adopt Blockchain in India
reduce the time taken for a Letter
of Credit (LC) from 20-30 days to
only few hours.
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Tapping B-School ecosystem
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✓ Launched in 2010✓ Case study competition ✓ INR 5 lakh rupee of prizes ✓ 25000 + B School students✓ Themes
▪ Innovation and Digitalization
▪ Solar energy
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Engaging with the startups and ecosystem
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✓ OurCrowd- Israel-based Crowd-funding platform
✓ QC Fintech - US-based leading Fintech accelerator
✓ MaGIC - Malaysian Global Innovation & Creativity Center
✓ Lattice 80 – Singapore’s largest Fintech Hub
✓ Holland Fintech✓ Innovation Center of
Denmark✓ Abu Dhabi Global Markets✓ Nestholma – Finland based
leading fintech accelerator-of-its-kind in the Nordic region
January 2017
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SIMsePAY
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Wafer thin sticker installs a SIM Tool Kit (STK)-based application
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Google getting into
the fray
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Google is looking to enter the payments space, riding on
the success of the Unified Payment Interface (UPI), which
allows people to send and receive money into bank
accounts. Tez works for more than 55 banks in India as it
works on any UPI-enabled account
✓ Made for India ✓ AudioQR✓ On lines of BHIM App✓ Adopts Virtual Payee Address ✓ Amount debited directly from
card ✓ Doesn’t ask for Aadhaar data✓ Secure ‘Tez Shield’
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Making it intuitive
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Exploring non-customers
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Moving upstream:m-Payment to
Bank
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May 2017
✓ First bank to offer cashback✓ 31 branches and 3,000
customer service points✓ Rs. 250 cashback to
customers depositing Rs. 25,000
“Leveraging power of technology, we aim to become the
preferred bank for 500 million Indians by 2020”
- Renu Satti, CEO, Paytm Payments Bank
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Moving downstream:
Bank to m-Payments
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$60 Million in July 2017.
Was sold to Snapdeal for $400 Million!
“Payments is core to our franchise and when we looked at the FreeCharge platform what we saw was that it had a great brand which they have been able to build in a very short period of time.”- Rajiv Anand, Executive Director, Axis Bank
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Designing for the extremes
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• ATM On wheels – ICICI Bank 2002
• Solar ATM- IndusInd Bank-2009
• Talking ATM- Union Bank of India 2012
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Radical Inclusion Nov, 2016
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Experimenting extensively
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“ Our belief is India’s youth live around the fulcrum of digital, social and mobile”- Chandra Kochhar, CEO ICICI Bank
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Innovation across the value chain
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Key takeaways
• Creativity is not same as innovation or invention
• Innovation calls for commercialization
• Focus on breakthrough alongside incremental innovations
• Innovation is a process
• Adoption of SMAC technologies
• Looking for extreme customers/ scenarios
• Tapping the ecosystem to generate insights and ideas