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iSPIRT – Indian Software Product Industry Round Table is a non-profit think tank formed by leading practitioners of the industry

to assist in the cause of building a healthy, globally-competitive and sustainable industry. Visit www.ispirt.in for more details.

Towards presence-less, paperless, and cashless service

delivery

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125 Years of Power Generation

Edison to Now

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125 Years of Telecom

Graham Bell to Now

Layered Innovation

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Mass Flourishing!

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TCP / IP, Internet, SMTP (Email), GPS

Fundamental Technology Innovations, Govt. Funded, Publicly

Available

Payments Visa/Master, ApplePayEvolution of Payment Systems,

Security Frameworks, ...

Open APIs, Platforms Google MapsLarge Scale Infrastructure, Private

Companies,

Smart Phones Android, IOSTelecommunications & Computing

Technologies - Hardware Innovations

T E

C H

S

T A

C K

Layering of Innovation

Govt. Technology

eCommerce(Amazon)

Taxi(Uber)

Hotel(Airbnb)

------

An ‘hourglass’ platform architecture

Allows innovation on all sides

● Minimal● Standardized● Simple design● Easy to execute● Easy to write a law

Applications

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Devices

UPIAEPS

esign

DBT

APB

Digital locker

Other apps

Phones

Micro ATM

Tablets

FP/Iris sensors

Check-in Device

J A M - The Foundation of the India Stack

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Pradhan Mantri Jan Dhan YojanaBANKING FOR ALL

8Source: As on 29 Mar 2016, http://pmjdy.gov.in

Accelerated by Regulatory Innovation

Source: News Reports 9

BANK NATIONALIZATION

New Banks

1969 1980 1993 2001 2014

2015

+14+6

+10+2 +2

+2149 Years, 14 New Banks in 3 Months

Ushering in a new ERA of

DIFFERENTIATED BANKING

Aadhaar: 1 Billion in 5.5 Years

950M

600M

300M

100M

50M

Source: Data from http://www.uidai.gov.in 10

1B

The rise of smartphones

Current sales

about 25M smartphones per quarter

Source: Ericsson Mobility Report 11

The Evolution of the India Stack - Built on JAM

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2010 2011 2012 2013 2014 2015 2016

950 M

1005 M

190 M

Aadhaar

Mobile

JDY

2009

944 M

600 M

100 M

Source: Ericsson Mobility Report, PMJDY, Aadhaar Web Sites

AEPS

APB

Aadhaar Authentication

Aadhaar eKyc

eSign

UPI

Consent Architecture

Digilocker

1+ B

1+ B

250+ M

Name DoB/Age Gender Address Mobile/Email

1234 5678 9012

UniqueLifetime

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AadhaarAuthentication

NO MORE PHYSICAL PRESENCE

Are you who you claim to be?Only a yes/no answer

Anytime anywhere14

Aadhaare-KYC

NO MORE PHOTOCOPIES!

Access ONLY via authenticationNo more fake identities

No more paper

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Existing DSC non-scalable due to physical verification, paper process, and use of dongles

eSign allows all Aadhaar holders to digitally sign anytime anywhere

Open API based, allowing applications to easily integrate

eSign - eliminating wet signature

16Source: http://www.cca.gov.in/cca/?q=eSign.html

Digital Locker - eliminating fake papers

Open API based

Ecosystem driven

Digitally protected

Source: https://digilocker.gov.in 17

DigiLockerIssuer Requestor

Users

Issues Documents Digitally

Accesses Documents Online

Approves Access

Unified Payment Interface

18Source: http://www.npci.org.in

Instant

Push & pull

Virtual addresses

Smartphone as card

Smartphone as PoS

1-click 2 FA

Electronic Consent Architecture

Data Consumers (Banks,Credits Providers etc)

DIGITAL LOCKER

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All "data sharing" to be "via" the "owner" with "consent"

"Owner" of the data can "electronically request" his/her data and store in his/her "digital locker"

"Owner" can "choose" to share the data "for a purpose" using "electronic

consent"

Data Providers (Banks,Telco, Hospitals,etc)

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PRESENCE-LESS LAYER Aadhaar AuthenticationUnique digital biometric identity

with open access of nearly a Billion users

CONSENT LAYER Open Personal Data StoreProvides a modern privacy data

sharing framework

PAPERLESS LAYERAadhaar e-KYC,

E-sign, Digital LockerRapidly growing base of paperless systems with billions of artifacts

CASHLESS LAYER IMPS, AEPS, APB, and UPIGame changing electronic payment systems and transition to cashless

economy

COMMERCE(GSTn)

CREDIT(RBI)

INVESTMENTS(SEBI)

OTHERS

I N D

I A

S

T A

C K

SKILLS

JAM Jan Dhan, Aadhaar, Mobile

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We will go from data poor to data rich nation in 5 Years!

Digital Identity

Paperless Process

Commerce

Payment

Social

Machine Learning & Algorithms

Cashless, Paperless & Presence-lessService Delivery

Nandan Nilekani, 2015 22

The phone will replace the card as the ‘What you Have’ authentication factor

WHAT YOU

KNOW

WHAT YOU

HAVE

WHOYOUARE

PIN / Password Card Proof of Identity

Nandan Nilekani, 2015 23

Combining Security with Convenience

Biometric smart phones enable 1-click 2-factor authentication

WHAT YOU

KNOW

WHAT YOU

HAVE

WHOYOUARE

Smart Phone Aadhaar

Nandan Nilekani, 2015

The future is here!

Smartphones with integrated Iris recognition available!

24Source:http://mashable.com/2015/05/13/japanese-smartphone-mobile-payments/

Providing credit without friction

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Why Rajni Cannot Get A Loan?

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Customers with the lowest default rates have the highest interest rates

Sales Costs

No Credible

Data

Servicing Costs

Need a loan

Sees loan

offers

Accepts best offer

Receives loan

Sells Goods

Repays loan

Agrees to share

data

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7 Key Steps For Rajni to get a small intra-day loan

Consent Architecture

Credit marketplace

app

Credit market-

place

paperless contract

Transaction a/c & app

Payment app

Payment app

Need a loan

Sees loan

offers

Accepts best offer

Receives loan

Sells Goods

Repays loan

Agrees to share

data

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Each step requires a solution

Need a loan

Sees loan

offers

Accepts best offer

Receives loan

Sells Goods

Repays loan

Agrees to share data

Consent Architecture

Credit marketplace

app

Credit market-

place

paperless contract

Transaction a/c & app

Payment app

Payment app

Aadhaar/eKYC

digilocker

API for loan

offers

eSign Digilocker

UPI

authorization

api

UPI

UPI

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Each solution is enabled by the India Stack

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Cashless & Paperless

Digital Footprints

BusinessMicro-Credit

Business Growth

Feeling of Wellbeing

Virtuous Cycle of Credit to the first mile

Solution

Making investments accessible

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32Source: NCAER-CMCR survey, www.openthemagazine.com, discussions with ScripBox

Onboarding Cost

Break Even Investment

Target Market Size

Rs 1500 Rs 300,000 3M Households

Rs 100 Rs 20,000 34M Households

Rs 10 Rs 2,000 105M Households

Sachet Sized Transactions!

With reduced costs, minimum ticket sizes will come down, volumes will go up!

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TXn Cost Comm. Break Even Ticket Size

Rs 50 50 bps Rs 10,000

Rs 5 50 bps Rs 1,000

Rs 2 50 bps Rs 400

To Increase Market Size 10x or 50x

Cost of Doing Business Must Come Down!

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Enabling The Skills Marketplace

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The Skills Problem

Low trust environmentEmployers do not trust credentials

Training is not a differentiatorNo premium for quality

No accumulation of skill credentialsLack of mobility

Vicious Cycle

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Training, Apprenticeship & Certification

TrustedCredentials

Employment

Credible History

Differentiated Earnings

Virtuous Cycle for Skills

Guru-Shishya ParamparaEcosystem of

institutes/agencies

Aadhaar, Digital Locker for portability

and trust

Market places like LinkedIn, Babajobs, etc.

Jeevan Pramaan Re-imagined

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Govt Center

Nearby Shop

Home Service

Any individual or agency

Choice of location

Trust established digitally

Mobile phone with biometrics

No paper work

Using Aadhaar biometric auth,

eKYC, eSIgn, and UPI

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India Stack as Digital Infrastructure

Regulatory Policy

Market Making Policy via Challenge Grants

100s of Experiments - Low barriers to entry - Level playing field - Aligned to national issues - Rapid success/failure cycle

A robust

foundation to

enable innovative

solutions to

India’s hard

problems

Innovative Solutions to India’s Hard Problems - Commercially Viable - Far reaching consumer impact - Reinforces experimentation

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Thank You