fintech innovations from india

FinTech innovation in India: A cultural

perspective

Dr. Pavan Soni

Innovation Evangelist and Founder

Inflexion Point Consulting

[email protected]

www.InflexionPoint.net

mailto:[email protected]

http://www.inflexionpoint.net/

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

http://www.pavansoni.com/

https://in.linkedin.com/in/pavansoni

https://www.facebook.com/pa1soni

https://twitter.com/Pavan_Soni

https://www.youtube.com/user/innov6

Session objective

• Insights on innovation

• Building an Innovation Culture

• Creating the Blue Ocean

• Insights from startups

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

10/19/2017 Pavan Soni, Innovation Evangelist 5

R&D doesn’t impact performance


Source: Strategy&

The vocabulary

9

Creativity Novelty Utility +=

Level of operation= Individual or Teams

Innovation New concept Commercialization +=

Level of operation= Organization

Inventors are not always innovators


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


RIM Touch-screen smartphones


Sony LCD screens Samsung $6 billion 23% $144 billion 1996-2006

The process view of ‘Innovation’

11


Source: BCG

10/19/2017 Pavan Soni, Innovation Evangelist 13Source: BCG

Financial inclusion in Africa

www.PavanSoni.com 16

Consultative Group to Assist the Poor (CGAP) Report- September 2017

Source: CGAP Report

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

Shaping an Innovation Culture

www.PavanSoni.com

19

As of April 2017

Tapping the mobile- the firsts


Feb 2015

June 2014

Jan 2015

Banking on Digital


• 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

Elephants can dance!


✓ 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

Startup incubation funding


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

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

Hackathons and digital challenges


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

Mass adoption of AI/ Automation


✓ 200 business processes

✓ 60% reduction in

response time

✓ 100% increase in

accuracy

September 2016

Increasing access to credit


✓Rs. 20,000 for 30 days✓ 50 parameters to build a credit profile.✓Participation in e-Commerce boom ✓ Flow based lending

September 2017

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.

Tapping B-School ecosystem

www.PavanSoni.com 4

✓ Launched in 2010✓ Case study competition ✓ INR 5 lakh rupee of prizes ✓ 25000 + B School students✓ Themes

▪ Innovation and Digitalization

▪ Solar energy

Engaging with the startups and ecosystem


✓ 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

SIMsePAY


Wafer thin sticker installs a SIM Tool Kit (STK)-based application

Google getting into

the fray


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’

Making it intuitive


Exploring non-customers


Moving upstream:m-Payment to

Bank


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

Moving downstream:

Bank to m-Payments


$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

Designing for the extremes


• ATM On wheels – ICICI Bank 2002

• Solar ATM- IndusInd Bank-2009

• Talking ATM- Union Bank of India 2012

Radical Inclusion Nov, 2016


Experimenting extensively


“ Our belief is India’s youth live around the fulcrum of digital, social and mobile”- Chandra Kochhar, CEO ICICI Bank

Innovation across the value chain


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