Smart Nation, Financial

Innovation and Inclusion

Rajendra Srivastava Dean, Indian School of Business

August 19 2016

Smart Nation, Financial Innovation and Inclusion

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Smart Nation • Aadhar, Mobile Commerce

Innovation • Market-based Assets, Business Networks

Financial Inclusion – Making it Happen • Who, What, How

Business Model Innovation • Platform Thinking

• Learning from the Future

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SMART Nation: Aadhar Card,

Smartphones & Payment Systems

Smart Nation

Unique Identification

Authority of India

• 1,050 Million Cards in 5.5 Years

• Biometrics – Retina & Fingerprints

• 1005 M Mobile Phones

• 180 M Smartphones,

+25 M per Quarter

Mobile Payment

Systems & Wallets

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INNOVATION: Doing Things

Better, Not Just Invention

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Innovation: Doing things Better

It’s NOT Just Technology – It’s Business !!

You Can Have Any Color Car as Long as it is Black

JIT

From12.5 Hours to 93 Minutes

Competitors

Learn GUI from Apple

Leverage IBM Brand Equity

Price Below OS/2 & Sys 7

PC Manufacturers

Pre-Installation

Licensing/Pricing

Co-Brand

“Win-Tel”

MS-DOS

Upgrades Installed

Base

SW Developers

Number of Applications

Co-Op Adv. (Design for W’95)

Support ($, Tools, SW Eng.)

Viral Marketing

(Samples)

New Customers

Market-Based Assets &

Eco-Systems: Collaborate to Compete

Customers and NWs Off-Balance Sheet Assets

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Nurture Off-Balance Sheet, Market-based, Intangible Assets

Tangible < 25%

Intangible >75%

Brands

Customers

Distribution NWs

Human Capital

Intellectual Property

more people across the country participating in online shopping on

mobile

Easy connection with seller and buyer,

real-time parcel tracking

Cash on Delivery to adapt customer preference

BUYERS Vendors Brands

Leveraging Market Disruptions

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Banking as a Digital Platform

Banking Platform

Merchants Vendors

Tech Partners

Regulators

Central Banks

Service Providers

Manufacturers

Customers

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FINANCIAL INCLUSION:

Making it Happen

Financial Inclusion

Aadhar – From Margins to Scale

From Fee Income to Data/Information Entrepreneurship

Savings, Credit, Uniform Lending Rate

Transaction Size

$500

$0.50

Number of Customer

Mobile/Smartphone Platform

Trust 1-Click 2-Factor

Access/Convenience Immediate Payment

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INNOVATION & EVOLUTION –

Learning from the Past & the Future

Copyright: Rajendra Srivastava

Market-Driven: Transition to Business and Social Network Marketing

e-Networks Management

Social Networks

Eco-Systems

Customer

Engagement

Market-Driven

Apple, Google

Facebook

e-Marketing

Analytical

Customer Mgmt

Market-Driving

Capital One

E*Trade

e-Retailing

Customization

X-Sell, Up-Sell

Multi-Channel

Schwab BoA

e-Commerce

Efficiency

Price –

Promos

Dell AA

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M/B P/E P/CF ROA ROE ROIC

AAPL 3.6 13.0 7.7 17.6 28.8 23.1

GOOG 4.6 33.4 22.8 11.9 15.5 14.0

Create FUTURE Value

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Shift from Traditional Banking to Fin-Tech

ME Refill

Please

OLD Half

Empty

NEW Half

Full

Protecting the Past

Thank You!

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