Conference Report 3
Monish Shah, Partner, Financial Services, Deloitte Consulting: Indian economy has invested heavily in creating the payments infrastructure. Financial penetration is low in India, while Indians are becoming incurably wealthy, from a historical perspective. We have reached at such a place in the economic cycle where consumption is more. A lot of innovation is happening in the BFSI industry and payments is one area that is in the forefront. The payments industry is bound to expand and is poised to reach the trillion-dollar level. Different customer journeys and propositions coming up, this will lead to a differentiative economic ecosystem. The country has a solid backbone of technology and traditional financial services.
It is expected that one-third of all payments will be through the digital mode soon and as such payments is in the forefront of the innovation scenario. In the days to come payments will become more innovative as there will be card to cloud payments, any time
Speakers from the BFSI sector share their insights about the next level of payments in India:
anywhere PoS payments, pay as you message and API-based payments. We have always had a cash-driven economy and it will take generations to change this. Most of the payments companies have gone for multiple partnerships. Cash back is the important characteristic for a payment company. Customers can monetize loyalty by using a payment platform. Payments banks have tie-ups with universal banks, NBFCs, fintechs, and oil companies.
Sumnesh Joshi, Assistant Director General, Unique Identification Authority of India: There is lot of potential in the payments industry. JAM, or Jandhan, Aadhar and Mobile, are the key drivers of the economy and these are contributing for the benefit of the end- customers. The government is working on Bharatnet to connect the villages. BFSI institutions should give importance to customer data security and should have strong fraud management system.
Rajeev Arora, Director - Technology & Central Operations,
FINO Paytech: In future, mobile payments will overtake card-based payments. Blockchain is being used to package the transaction securely. The wallets have limited self-life; there is limited future for wallets in India. BFSI companies are investing huge amount of money on customer service. For payments companies, customer insights play an important role, it helps to understand the payments pattern of the customers. In rural India, there is lack of cash in banks and in ATMs, so people in these areas have to depend on digital for the money transactions. Digital based transactions have become a necessity in the rural areas.
Kalpesh Mehta, Partner, Deloitte Haskins & Sells, India: API has increased the use of payment platforms in India. Payments data helps in understanding the spending pattern of the customer. Companies invest huge amounts of money in analyzing the customers, it helps them to offer right product to the customers. In India, only 40% people know English. Hindi, English, Marathi, Telugu, Tamil and Gujarati are the top 5 languages that people in the country use.
Shiv Kumar Bhasin, CTO, State Bank of India: Different types of payments should be handled by a centralized architecture. There are focal points linked to the core banking system. Reliable data, architecture and audit trail are the 3 functions in processing payments. Every payment transaction should ideally be in real time. Banks should be vertically and horizontally scalable.
Anupam Bagchi, Head, Credit Cards, Payments & Unsecured Lending, Standard Chartered Bank: In the year 2000, HDFC Bank started digital transactions. Today, API layer is the new payments hub. We recently added API layer in our banking system, which handles security; it also helps to get the information about a person and the organization to which the bank is connecting.
Deepak Kunhikannan, Regional Director-India Markets, Pegasystems: Core systems should do core authorization. For business perspective, it is important how you drive the business. For API business perspective, we need to think what it will deliver as value. If you look at high level, there are 3 to 4 aspects. To a large extent, we get it like we focus on task. We always talk about channels and not about journeys. We always go for decentralized approach. Companies can take automation to the next level with the help of technologies like AI, MI and robotic automation.
KV Dipu, President-Operations, Bajaj Allianz: We have to keep in mind the 4 important aspects of payments - how to leverage the daily push notifications, customer security, customer centricity and use of leveraging AI, MI to monitor frauds and control them.
Mehul Mistry, Sr Director-Payments & Digital Initiatives, IDFC Bank: We have compartments like bank branches, ATM, etc for traditional payments. Digital banking provides omni channel experience for the customers. We use UPI to provide frictionless payments to all other partner companies.
Mayur Dwivedi, President & Head- Corporate Strategy, Yes Bank: Trust, transparency and security are the key features of the blockchain technology. There are few areas in which blockchain technology has taken the leading space and while in other areas there is proof of concept, regulation is also evolving around these areas. We have implemented blockchain from the vendor finance perspective. Supply chain vendor finance solution for networking collaboration is the main area and many banks are approaching us to create a common platform. Trust is the key factor which blockchain establishes. There are other non-conventional areas where blockchain technology can be useful. Blockchain bonds can be something, where one can see the utilization of funds. We can use blockchain where there is temporary network of transactions. Regulations need to evolve, and the future is going to be facial recognition and voice-based transactions and solutions.
Prasanna Lohar, Head Technology-Innovation Architecture, DCB Bank: Blockchain technology is divided into 3 parts 1.0, 2.0 and 3.0. All the mature systems of blockchain are part of blockchain 1.0. For example, bitcoin and cryptocurrency. Enterprise kind of use cases like trade finance and cross broader payment, complete insurance, smart contract are all part of blockchain 2.0 and all the remaining areas are part of 3.0. Blockchain is one area where banks will start collaborating. The current era is collaborative era and the future era will be automatic era.
Advocate Puneet Bhasin, Cyber Crime Lawyer & Blockchain expert: For smart contracts, you need to amend the proposal. It is presumed that acceptance is right at the beginning, so the entire contract needs to change. Blockchain needs to be
supported by other laws. The cyber act came into existence in 2008. There are special cyber courts, but we have only one court to look after data breaches and it is in Mumbai.
Suresh Shanmugam, Head-Innovation & Future Technology, Mahindra Finance: Rural customer is very much aware about biometric technology and voice-based transactions have matured in rural areas. Using a multilingual chatbot, we are capturing customer data. We mainly use blockchain for Mahindra Suppliers.
Sameer Singh Jaini, Digital Strategist & FounderThe Digital Fifth: Today, most of our office work happens on WhatsApp, in spite of having many other platforms. The social message kind of platform is going to be used heavily and social media and messenger systems will continue to prosper. WhatsApp for business is already out. Google is going to come up with a strong preposition for the smaller and medium businesses.
Deep Agrawal, SVP Digital Payments & Mobility, YES Bank: We are using the services of Hike Messenger and Microsoft Kaizala. We have also started using WhatsApp and other chat platforms. API-based payments and API based transactions are very easy to integrate now.
Andrew Toolan, Head Financial & Professional Services, MIDAS: In Manchester, the activities of advertising and media companies revolve around how to improve the customer journey. Social media platforms will be going to improve the customer experience. There are several banks in Manchester, which are setting up innovation hubs and looking to partner with fintechs and others to deliver value-added services.
Mithilesh Singh, Director & Head - Technology Audit, IDFC Bank: We are new in the BFSI industry and we started our digital journey approximately 3 years ago. There are several innovative things happening the payments realm and the government efforts, especially the initiatives of NPCI have promoted the creation of a digital economy in the country. Governance and security are the areas where BFSI companies need to focus on. We have introduced ‘banker on call service’ to provide convenience to our customers. We are also pioneer in the introduction of micro ATMs in rural India, which have become highly successful.
Makesh Chandramohan, CISO, Aditya Birla Group : We have adopted a complete risk -based approach. There is a layered approach to see how risk is calculated.
Kiran Maraju, DGM, Cyber Security, State Bank of India: We need to adopt an approach in which we can control infrastructure, identify products. Security should be a factor for the whole lifecycle. Data localization, multiple components required should be kept confidential and should be within the control of the organization.
Abhijit Shah, CTO, DCB Bank: In the last 5-6 years, things have changed drastically in the banking industry. Effective monitoring is becoming very important. The customer perspective platform is driving the industry. International norms are coming to India due to globalization. It is important to process data locally as there are security solutions available. Key management support is also available.
Panel discussion in progress at Paynext 2018August 2018
One of the panel discussion sessions in progress
Panelists sharing new firstname.lastname@example.org