FinTech Trends - teknospire

FINTECH GROUPS LISTICLE

teknospire / 12/07/2018

The Fintech arena is brimming with innovative ideas, thoughts, products, & events. The ideas, thoughts need to be discussed & explored. Products and events need to be let known and highlighted on a suitable platform. As a perfect platform, there are fintech groups on various social media channels for fintech knowledge transfer and announcement of the various fintech events. With a number of groups available on the various social media channels, it is a tough task to decide on the Information rich groups and being part of them. Hence presenting to our readers a listicle of the popular and information-rich fintech groups on Facebook and Linkedin along with the links. Facebook: Fintech,Blockchain & Deep Tech Startup & Talent Fintech Network https://www.facebook.com/groups/FinTechForum/ FinTech News https://www.facebook.com/groups/fintechphilippines/ https://www.facebook.com/groups/fintechIndia/ FinTech Asia Community FinTech Asia https://www.facebook.com/groups/FinTechMalaysia/ https://www.facebook.com/groups/FintechSingapore/ Fintech Blockchain & Trading Chicago Booth FinTech Titans of Fintech https://www.facebook.com/groups/FinTechMX/about/ https://www.facebook.com/groups/londonfintech/ https://www.facebook.com/groups/fintechaustria/ Fintech Australia & NZ Fintech Apac https://www.facebook.com/groups/FintechBrasil/ https://www.facebook.com/groups/africanfintechthinktanks/ https://www.facebook.com/groups/FinTechDRC/about/ Linked In : Bank And Finance Technology Startups 20/20 Payments, Fintech, MPOS Innovation

FinTech Trends

Open Banking Initiatives in Singapore, Australia, Hong Kong and India

Samiksha Seth / 04/07/2018

The hurricane Named PSD2 has captured most of the banks and fintech across the globe. Almost six months later – IDC published a list of APAC countries in terms of readiness for Open Banking. While Singapore And Australia Have Occupied the First Two Slots In the State of Readiness of Asia/Pacific Markets for Open Banking India, Hong Kong, China with third slot are exploring ways to move up the ladder. For Further Ranking Details Do Access the infographic here. What were the factors that helped Singapore top the list or what are the challenges faced by other developing countries? Which open banking fintech start-up is catching the eyeball? Are there any failures? Let’s dive in to explore more…. If you are new to Open Banking, Open Banking API, Open Data or Open API, please read our post – EVERYTHING YOU NEED TO KNOW ABOUT – OPENBANKING, OPENAPI, OPEN DATA and ABC’s of Open Banking infographic to get started. Open Banking Initiatives in APAC Use of Open API in Banking services marks a shift from organization centric to customer-centric services. The whole idea of Open Banking restructures the way Data is channeled between different systems with due permission from the customer. While The beneficiary of Open Banking Is Under Debate And entrepreneurs and banks are exploring ways to reap its benefits Let’s have a look at some of the Open Banking initiatives in APAC region – OPEN BANKING IN SINGAPORE | OPEN API IN SINGAPORE Monetary Authority of Singapore [MAS] in 2016 released 12 APIs on its website. The data available by MAS helps developers and firms to come up with innovative and relevant apps and services. The MAS endorsed guidelines allows people across the globe to innovate and integrate their solutions for the betterment of Singaporeans. DBS Bank DBS Bank on 02 Nov 2017 launched world’s largest banking API developer platform, that is the largest by a bank anywhere in the world. As per the press release from DBS bank – With 155 APIs at launch for Singapore across more than 20 categories such as funds transfers, rewards, PayLah! And real-time payments, the platform will offer the world’s largest number of and most relevant banking APIs for companies, whatever their focus, from fintech to lifestyle to build upon. More categories will be added in response to demand. SoCash A startup from Singapore offers technology that could directly plugin into a banks API; customers could place the cash order and pick it up from nearest authorized merchant location. All of this is achieved without the need of card/PIN. Most importantly, the firm does not store any information about your account/card,and it lies in safe hands of bank APIs. SoCash has partnered with Singapore’s significant banks – DBS, POSB,and Standard Chartered – to provide digital cash points island-wide Wavecell Wavecell another startup from Singapore uses open API to help financial institutions and non-financial institutions to send SMS across the globe via three different channels,i.e., web-based SMS sender, HTTP API integration with applications and SMPP interconnection to facilitate high volume SMS. It recently partnered with a fintech client in Japan Paidy that could engage their customers via SMS OTP and SMS notifications. OPEN BANKING IN AUSTRALIA | OPEN API IN AUSTRALIA In Australia start-ups, aggregators, venture capital investors believe that open banking API or API banking services would enhance productivity, lessen the cost, effort and time required to switch banks, and would “empower clients to use their data to be able to make better financial decisions.” However, Banks like ABA, ANZ Banking Group, Commonwealth Bank of Australia, the Australian Securities Exchange and Insurance Australia Group are resisting and urging to the government not make it as a mandate. One of the Australian sites quoted the banking official statement – An open banking standard was “likely to be a very costly exercise for banks” and would provide competitors with access to a valuable commercial asset. “The banking industry notes that business and customer relationship data are a valuable commercial asset and are subject to extensive investment, privacy, and other obligations.” In the midst of all the tussle, we observed a couple of startups/firms building their API solutions that could be useful to banks and other non-financial institutions – Basiq Located in Sydney, Basiq’s core solution allows fintech companies to securely obtain authorized financial data from banks and use it for the development of third-party applications. The startup is trying to bridge the gap between the existing fintech startups and financial institutions. Macquarie Macquarie bank has taken an initiative to empower open banking and offer fintech start-ups and smaller financial institutions to access the data, with permission from the customer, to build third-party applications and services. As quoted by business insider– The open platform allows a customer to control which third parties have access to information through on-off levers within the Macquarie mobile app. The third party then has read-only access to the data using a secure token – avoiding the need for the customer to reveal internet banking credentials to the third party. OPEN BANKING IN HONG KONG | OPEN API IN HONG KONG The Hong Kong Monetary Authority (HKMA) has declared seven initiatives to create a “smart banking” system in Hong Kong. And the most thrilling was a proposal to develop a policy to facilitate the development and wider adoption of application process interfaces (APIs) by the banking sector, “thereby stimulating innovations and improving financial services through collaboration between banks and tech firms.” In his speech Norman Chan, chief executive of the Hong Kong Monetary Authority said – We aim to finalize our policy on Open API for the banking sector around the end of the year. With such welcoming move, Hong Kong is all set to be the new hub of API banking services. Citi In May 2018, Citi announced about its partnership with six corporations in Hong Kong to empower and accelerate the open API development and acceptance. Citi has launched APIs in different categories like Onboarding, Cards, Customers, Pay with Pointsand Money Movement.

Finance, Financial Inclusion, FinTech Trends, Payment Banks

How wallet Helps in Last Mile Banking?

Vandana Kaul / 07/06/2018

You might have been using your ATM card as an easy substitute for checkbook, but did you know then, that it was just the start of an era? As more time passed, more and more alternatives for traditional banking arose, changing the scenario forever. Not to mention the lack of traditional banking infrastructure which also promoted the growth of digital banking methods. As per the official data, even as of today, only 27% of villages in India have a bank in 5 km radius. A large mass of India’s population lives on the environs of the formal economy. Living in far-flung corners of the country, Illiteracy, lack of financial education, not being aware of the availability and/or value of financial services and lack of connectivity are few of the many reasons why consumers in these areas remain unbanked. Moreover, banks in rural areas are few and far in-between, making the reach difficult for many during working hours. To address these obstacles and to broaden financial inclusion, Indian government came up with solutions to help in reach built out for last mile banking which aimed to give every household access to banking facilities by offering them zero-balance accounts across all commercial banks. After the prime minister of India launched Jan Dhan Yojna, we saw a world record number of bank accounts opening in a single day and things seemed promising. But, a study done 3 months after the scheme was launched, revealed more than 75% of accounts to be dormant. Neither banks nor ATMs are located within reach of all. Opening an account was way easier than to actually keep it rolling on regular basis and encouraging them to have some savings too. People living in remote areas and the people at the base of the economic pyramid, the ones who are underbanked and unbanked, are in true need to be financially included. But then did JDY, despite having the genuine concern and the intention of solving it, actually served its purpose? The answer is NO, well not completely. This was further trodden by the demonetization move and the impact it had on traditional currency and transactional methods. In an interview with CNN two weeks after demonetization move, India’s key player in digital wallet industry Paytm CEO Vijay Shekhar Sharma said and I quote, “I Don’t Need to Sleep, I am Living a Dream.” Paytm saw an increase in traffic as much as 4x times, app downloads increasing by 200% and an overall increase in transactions by 250%. Mobile-wallets-adoption-in-India The Indian government is emphasizing on making India digital, a major example of which is roping e-wallets to digitize rural economy. With the government realizing the potential of digital wallets in helping built out for last mile banking and taking major official steps for it, India is a promising hub. Treading along with the Government are the entrepreneurs and VC backed FinTech companies who have come up with solutions to help in reach built out for last mile banking, thanks to the feasibility and accessibility of digital wallets through the country. At present just about 300 million Indians have a Smartphone and 66% of Indian population still don’t have access to the internet. FYI: (On a lighter note) India has nearly as many Smartphone users as the U.S. has people, and it’s about to get many millions more. This, however, is bound to change after the Digital India initiative of the Indian government with India being a sweet spot in terms of Smartphone market growth in the upcoming years. Another example of how digital wallets are helping make last mile banking a feasible reality is that of Zimbabwe, located in the African continent. Zimbabwe has shown tremendous growth in terms of mobile banking. In the year 2017, almost 96% of total banking transactions which amounted to a total of 98$ billion were carried out via digital methods such as e-wallets, net banking etc. Further data shows that out of around 18 million people of Zimbabwe, 6 million of them are registered on the leading digital wallet in their country i.e. EcoCash and about 1.5 million being highly active on it, total transactions carried out via this app reaches to 30 million per month. Oracle Statistics_Customer Paying Behaviour The above statistics clearly depict the changing scenario in ‘customer’s paying behavior’, as people are preferring to become cashless. In the UK, cash withdrawals reached the lowest number of transactions in 2016 after 2010 (which was after the economic depression). In the same year, plastic transactions overtook cash-based transactions. Supporting this ongoing ‘cashless’ trend less than half of the population (about 43%) thinks cash still will be used in 2022 about 54% think they will be using cash very less in the upcoming years 47% expect to use more mobile payments and digital wallets. The emerging and developing economies are successfully making the last mile banking a reality with the help of digital wallets due to the benefits and feasibility of it which allows even the poorest and scarcely located people to avail banking benefits. First, it was the plastic money that slowly started to banish cash from transactions, now it is the turn of digital wallets. With ATM’s further making banking within everyone’s reach, it’s still not possible to open an ATM within walking distance of everyone. Digital wallets solve this problem by being accessible to each and everyone at a whim. However, it’s not all apples and oranges, they have their own sets of downsides and challenges like: Fear of adoption among users due to transacting online Unearned Interest on money sitting in the wallet as opposed to a bank a/c Lack ‘brand recall’ among the rural population Inadequate merchant tie-ups As per the new upcoming scenario, mobile penetration is very high in urban as well as in rural areas. This tremendous penetration of the mobiles could be used to bring financial inclusion to the last mile. With almost every mobile carrier in India now offering its own digital wallet, you need not even

FinTech Trends

Bank – FinTech Merger Importance and repercussions

Vandana Kaul / 05/04/2018

The financial services industry has entered 2018 with a focus on digitizing services to better meet customers’ needs. But do the banks understand that previously inefficient, paper-based processes and messy ‘not so friendly’ user interfaces are no longer going to be good enough in today’s technologically advanced environment? Banks are needed to connect digitally to succeed. With FinTech continuing to gain momentum, it’s just a matter of time, to see them fully integrated into business-as-usual banking. One of the world’s largest Deutsche bank calls for “a shift in mindset from one of competition to collaboration,” arguing that traditional banking providers and new innovators must work together in order to revolutionize the payments market and the wider financial sector for the benefit of all. They said it and I quote: “For both parties, a partnership should liberate them to focus on their core competencies and contribute these areas of expertise to the innovation process.” Fintech, no doubt, is the talk of the day amongst investors, financial service providers, entrepreneurs, and even big corporate houses. The phenomenal potential of creating innovative services and business model makes it disruptive in nature. Realizing the immense potential of the technology, “Banks” are looking to integrate with FinTech solutions. In short Bank+FinTech merger is next on the cards in the coming years. Welcome to the Era of FinTech. FinTech Nudged All FinTech, the technological innovation in the financial arena, registered its birth as a back-end activity, and today is nudging everything across the globe. It has transformed, almost everything, in such a way that you are about to witness the impact of the “fourth industrial revolution”. More than anything, it has created its own “FinTech Ecosystem” by embracing the following: Digital Payments Remittances Insurance Lending Financial and Wealth Management Retail Banking FinTech has impressed the Banking Sector and its customers, which is why the transformation in banking has touched a new height. The “2016 World Retail Banking Report” states that almost two-thirds of the retail banking customers across the world use FinTech products or services like cards & payments, loans, Investments, financial advice and mortgages. This is because of the UX standards they offer to their customers. 81% of the customers feel that FinTech offers faster services and extends a great experience. In addition, FinTech firms are fast catching up bank’s “niche parameter”- TRUST. The percent of customers who have complete or partial trust in FinTech firms is as high as 87.9% across the globe. FinTech-Globally Embraced Global acceptance of FinTech is evident from a recent comparative study by EY (formerly Ernst and Young) which reported FinTech adoption between 2015 and 2017 has increased across various countries like- Australia, France, Germany, China, and India. The figures indicate adoption of past (2015), present (2017), and future (as responded in the survey). The adoption of FinTech in these countries has climbed exponentially: Australia- From 13% in 2015 to 37% in 2017 France- From 27% in 2015 to 40% in 2017 Germany- From 12% in 2015 to 35% in 2017 China – From 69% in 2015 to 77% in 2017 India – From 52% in 2015 to 80% in 2017 ‘Banking with FinTech’ attraction Like any other sector, Banks have started reacting to FinTech, and since 2015, FinTech Banks have started emerging. Banks and Financial inclusions have initiated startup programs to constitute FinTech companies. Across the globe, 43% banks created such startups. Another 20% set up VCs to fund FinTechs. There are obvious reasons behind banks being forced to or influenced by FinTechs. EY FinTech Adoption Index 2017 released in June 2017 indicates that the appetite of digitally active consumers has risen considerably, from just one in seven digitally active consumers in 2015 to one in three in 2017. The report also shows that in 2017, there are 84% consumers aware of the fintech facilities in comparison to just 62% in 2015. The same reports show that the fintech adoption rate is expected to reach an average of 52% globally from the current rate of 33% in 2017. Such growth in numbers could soon blur the boundaries between different financial services, laying down new standards for the industry during the process. To stay ahead of the curve, financial firms would benefit from the technical assistance from the fintech startups. Why FinTech Lures Banks Unlike traditional banking, FinTech reduces structural cost and operational deficiencies. The communication between branches or P2P transactions happens in real-time environments. Real-time updates, proactive alerts and agile innovation are an integral part of an enhanced customer experience. When right technology is used, it can reduce the need for manpower and even the “Brick and Mortar” locations. FinTech provides simplicity of design and power of contextuality that consumers are increasingly expecting. Another customer expectation of ‘externally simple yet internally efficient’ service platform is forcing the banks to rethink their policy of ‘working alone in stumbling mode’ or ‘working and staying ‘in the game’ powerful mode. It also enhances regulatory compliance and better service to customers. Fintech firms like Teknospire are delivering convenient and affordable services by providing sustainable solutions for digitization of financial ecosystem to market segments (unserved and underserved) by taking care of their need for microloans and grants to the last mile, that till today were thought as unprofitable zone for banking organizations. User friendly, data focused seamless technology is bringing more personalized offerings. With the security aspect, well taken care of, with biometric advances, the virtual reality solutions are helping customers interact with the banks in innovative ways which were unheard of, with traditional banking. The fast and efficient products and services of FinTech have attracted Banks to offer P2B services. This is evident from the fact that many have started offering traditional in-bank services on mobile devices as well. This has helped them offer high levels of access to consumer, and hence, a better usability and User Experience (UX) standards. Advantages of the Alliance betweenFinTech and Banks With FinTech and Bank partnership, the ultimate

FinTech Trends

Open Source Software – Adoption, Initiatives, Value Proposition, Risks, Impact

Samiksha Seth / 29/03/2018

Have you read the book written by Eric S. Raymond “The Cathedral and the Bazaar abbreviated as CatB” on software engineering methods?It’s an interesting piece where the author is differentiating between the two kinds of software development. One is the building a cathedral referred to the closed-source development that has central governance, software releases available only to subscribed/elite groups and comes with a price tag. On the other hand, an open-source development stated as Bazaar is freely available to all, developers and geek from across the world contribute and build a stable, coherent, and robust system. Being a CXO, Developer or a consumer which technique would you opt for? Let’s explore – What Is Open-Source Software [OSS]? Open Source Software [OSS] is a software that is offered along with source code, with the rights to users to read or modify it. As per techopedia -The OSS group agrees that software qualifies to be an Open Source Software when – The program is freely distributed The source code is inclusive Edit rights and permissions are granted to any user Redistribution of the amended version of source code is allowed OSS license must not interfere with the operation of any other software. How Much Open Source Do Firms Use? The old story of needing to understand if your organization uses open source has shifted to how and how much open source is in your applications* – Rod Cope, CTO of Rogue Wave Software As per a study titled “Future of Open Source” ~90 percent of firms agreed that Open Source offers room for innovation, enhance productivity and interoperability. As per the report more than 55 percent respondents have adopted open source software instead of a registered software for a production environment. While you thought OSS is the need of the hour for Enterprises and startups, you would be amazed to know that even government organizations are embracing Open Source Software. As per a report by Red Cope February 2017 – Bulgaria Leads the implementation with most of the software designed for government offices are open source and available in public repository. The report also highlights how the brand is now “open” to explore the idea of Open Source Software. Biggies like Microsoft and Walmart have come up with open source code policy to handshake with innovation. Why is Open Source Software a Value Proposition? OSS is supporting innovation initiatives, accelerating development time and providing a competitive edge to your organization but what VALUE does it bring to a firm/user? The VALUE of being OPEN Being transparent is the fundamental idea of an Open Source Software. While Closed source development does not allow its user to test, evaluate and analyze the software, Open source offers firms to access the code before putting money into it. The power of tweaking the code, customizing as per your requirement is like possessing the magical powers for a software developer. The VALUE of INNOVATION and INVENTION As per a survey report from 2016 Future Of Open Source, respondents mentioned that continuous use of Open Source Software helps in innovation. OSS with its features like quick Time to market, ease of agile development and interoperability helps in delivering quality software with no technical glitches. However, the USP of innovating with OSS comes because of its free usage and communities that help and grow. Just download the code and start playing with it, in case you encounter a glitch reach out to the community for help and get it resolved. Within communities individuals work on mutual consensus, there is no competition,and that is a significant key to invention. The VALUE of Being FLEXIBLE Open Source Software [OSS] offers freedom of choice. You need not sign up for per-user plan or yearly plan, with OSS the opportunity is limitless. With strong community support at the global level, the OSS standards improve each day,and you could expand your product portfolio for your client at no extra cost. Such opportunities may not exist with proprietary software’s. The VALUE of Being SCALABLE How frustrating it gets when a website crashes due to an increase in traffic? For any software, scalability is a parameter that indicates the health of the product/service with an increase in volume/size or features. In fact, the 2015 Future of Open Source survey stated, 58 % respondents believe open source affords the most excellent ability to scale. Which Sectors Are Most Impacted by Open Source? As per research published by Techcrunch in April 2017, there are three major sectors for which Open source software are widely available. They are IT Operations[LINUX, Tomcat etc] ,DevOps [ Git, Node.js etc] and Data and Analytics [ MySQL, Hadoop etc]. Another report from Infosys highlights the fact that – Cloud, Big data, Content management, databases, operating systems, development tools and mobile technologies are the major tech areas where OSS is successfully adopted. While the same report marks Linux as one of the largest OSS , with almost 94% of the world’s top 500 super-computers using it. Open source versioning system git is the overwhelming choice for versioning with 73%. Why Organization Should Use Open Source Software If you are an individual, enterprise, startup, MNC or government organization Open Source Software are splendid and certainly suit your requirement of software engineering. When a firm/individual adopts to OSS, they are freeing themselves from a costly vendor lock-in that helps in the long run. Backed up by a strong community of skilled techies, help is just a click away, it is not only easy on installation but integration with third parties and customization as per client needs. With a promise to deliver quality and reducing time to market it helps in building trust and drive innovation at a fast pace. What Are the Risks in Using Open-Source Software? Unlike any technology, OSS also has some risks associated with them. Here is a list of major challenges faced by individuals in using Open Source Software- Lack of Standards and Protocols No defined process for integration and customization A grey

Blockchain could bring in financial inclusion

FinTech Trends

Could Blockchain Bring in Financial Inclusion?

Samiksha Seth / 22/03/2018

Living in an Urban city I never had issues in spending money be it cash or electronically. But when India was under the spell of Demonetization, despite having sufficient funds in my account I was not able spend them for one simple reason that – the vendors, vegetable sellers or rickshaw pullers didn’t have the bank account. It is fascinating to know that while in India where mobile penetration is 65-75%, almost 19% of India population is still unbanked (according to a report issued by Omidyar Network). While setup cost, connectivity and less profit margins are the major reasons for banks to work in remote areas, but lack of KYC and valid documents make it hard for immigrants [from rural areas or neighbouring countries] in urban cities to open a bank account. Could Blockchain technology help in overcoming these challenges?Indeed, the technology offers some unique characteristics that allows the banks and financial institutions to tailor their products and services to encourage ease of use for banked and under banked. Just for example a Philippines based firm Coins.ph offers its users a blockchain-based platform that is mobile compatible and allows users to send money at a more affordable and faster rate. Combining the power of digital currency with existing branch infrastructure they can help individuals in paying bills, loading their wallet, buying of bitcoins or Ethereum and Scan & Pay for cashless payments. Let’s dive a bit deeper to know if blockchain has the potential to serve the unbanked. Serving The Unbanked? The end-users [in this case the unbanked population] does not bother which technology you use and provide a solution, however they are keen on solutions that – Are Mobile compatible [ as mobile penetration even in low-income countries is over 50 %] Serve as low Infrastructure cost for banks Could be directly accessed by customers without the need of thethird party Does not need high-skills to operate the solution. Accessible from Anywhere anytime Most importantly are secured and trusted. Luckily all these points could be answered by BLOCKCHAIN. So, we could for now say yes Blockchain could help the unbanked. But then how would be the implementation and execution? Before jumping onto that, let’s see what all areas could blockchain help the rural people How Could Blockchain Help the Unbanked? Blockchain a neutral network that eliminates the need of third parties/intermediaries could help in inflating banks profit and reducing cost, but could be advantageous to other areas– Digital Identity We have the virtual presence or virtual identity on the internet, but we do not have control over what part of our identity is accessed by whom and used for which purposes. Just for example when drought/famine hit a region, government and international grants are released, but never we could trace the people who are under stress. Or for example, the refugees or illegal immigrants unless they have a proper ID no government organization could not help them. With Digital identity on blockchain, it would be easy for people to get access to aids and development. As reported by techcrunch,”Bitnation is using blockchain to help solve the refugee identity crisis in Europe. Their system currently helps Syrians get an “emergency ID” to cryptographically prove individual identity and family relationships.” With the digital identity in place it would be easy for government to roll out aids and easy tracking of the grants received and its usage. Digital Asset Ownership As mentioned by Victor Sandos in his post about a book The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else” by Hernando de Soto – Five-sixths of the world is poor but the 80 percent [of the poor] majority is not, as westerners often imagine, desperately impoverished. They possess crops, land, home, gold or other assets that in never valued by the system. These dead assets could be verified, identified and converted into a digital asset by blockchain. The owner then could derive money from it by lending, selling or mortgaging. Just imagine a rural person who owns a farm, a tractor and two cows. Although the vehicle and land might be a registered property but they are yet not a means of revenue generation. How about putting these things on a blockchain network assigning an ID to it, and then could be sold, put on rent or mortgage on market price thereby generating income out of it. Land Ownership How often do you trust the land deeds issued and stamped by local authorities about the ownership of a land? In fact, a news report from CNBC says that – It is estimated that $700 million is being paid in bribes at land registrars across India. Blockchain could help resolve this issue for farmers or small businesses who struggle to get the ownership back to them. In fact, the government of India’s Andhra Pradesh state has partnered with Swedish start-up ChromaWay to build its blockchain-based solution. The data would be stored in encrypted, tamper-proof huge groups, that cannot tamper. But how could Land ownership help in financial inclusion? Most of the rural people do not have bank accounts/avail banking services due to high cost, no banks nearby and do not have high financial portfolio that could help banks in generating profit. Now if land ownership maintained on a blockchain is linked to a bank account, the owner of the land could receive grants directly on it. Also, the digital asset could be used for mortgaging purpose. Mobile Payments Imagine an immigrant who wishes to transfer money to his family in the rural area, we have organization helping with remittance,but the charges are quite high and time-consuming process. Wouldn’t you wish for a real-time transfer or if you could pay your bills from any location/currency? Blockchain could be a savior here. Some of the cloud-based mobile payment solutions like Regalii and Ripple are helping immigrants and their families to transfer quick money/pay bills. While Regalii allows immigrants to pay bills through SMS from anywhere in the world, Ripple users need

Finance, Financial Inclusion, FinTech, FinTech Trends

Why Fintech B2C and B2B solutions are more in vogue in Asia?

Vandana Kaul / 15/03/2018

Preamble The global Fintech trends show an investment of £25.6bn in 2015 rising to £27bn by 2016. The global Fintech investments doubled in the period ending Q2 ’17 and reached $8.4billion. Similarly, in the period ending Q4 ’17, the figure was $8.7billion across 307 deals with annual global Fintech investment touching $31billion in 2017. FINTECH ASIA Asia probably “knows the way, goes the way, and definitely shows the way” and hence, is leading the globe in Fintech, fast embracing the innovation, adoption, and attending the unaddressed Asian customer needs. Fintech has seen some incredible growth around the world. According to DBS CIO Neal Cross, and I quote : “Asia is the real “waking giant” on the scene. Late to the party but catching up fast.” The fact that of the top ten leading Fintech companies in the world, five (Ant Financial, Qudian, Lufax, ZhongAn, and JD Finance) are from People’s Republic of China (Asia) is enough to justify the lead. Source : Top 10 FinTech Companies in 2017 Though the primary focal point of Fintech companies has been customer-based initiatives (B2C) and customer experience, it seems they have started believing in “ignore the noise and focus on the work”; hence, have shifted their focus to B2B solutions. In the period ending Q2’17, it is reported that out of the top 10 Fintech global deals, three are B2B-focused companies namely- CCH Tagetik ($321m), Pos Portal ($158m), and ITRS Group ($140.6m). Trends Which Keep Asia Leading the Fintech B2B and B2C Solutions Fintech investments Trends in Asia The legend “Only a king can attract a queen and only a queen can keep a King focused” stands true for Asian Fintech markets. The King of global Fintech- Asia has been attracting a lot of investments in the recent past which is evident from the Fintech trends in 2016, of the £27bn global investment £11.7bn was done in Asia, a whopping 44% share. Leading the region, China is estimated to have done an investment of $10bn in 2016 followed by India which did a Fintech investment of $1.1bn Fintech investment. Source : The Fintech Times May12,2017 Apart from these two major countries, other countries like Thailand, Cambodia, Myanmar, Malaysia, Indonesia, and the Philippines did a cumulative investment of $217mn in 2016. Singapore and Hong Kong clocked $800mn with $400mn each, which experts feel is a clear financial prediction of these countries becoming crucial Fintech Hubs in the near future. Latest Fintech Trends in Asia Asia, no doubt has become the largest hub for B2B and B2C Fintech solutions hub of the world and holds some of the largest Fintech companies like Ant Financial (US$60Bn), Lufax (US$18.5Bn), JD Finance (US$7Bn) and Qufenqi (US$5.9Bn). Incidentally, all the four unicorns are from the People’s Republic of China (PRC). There are obvious reasons behind Asia leading the Fintech race and the following Fintech Industry trends in the last few years suggest that Asia will see more movement in the Fintech space. Why Asia leading the Fintech race? Unbanked Populations It is said that 73% of the unbanked population of the world is in 25 countries, majorly in Asia. Since more than half of the world’s population is in Asia, Fintech firms have exploited the emerging needs or demands of the mass and have delivered innovative products and services like- Virtual wallets, Internet lending, e-commerce, P2P lending, payment gateways or mPOS. To match the pace of Fintech firms, traditional banks started adopting similar products and services and ended up in digitalization of banks. VC-Funding One of the major reasons for the Fintech industry of Asia experiencing an explosive growth and innovative products and services is strong Venture Capital funding. ‘Ambitious investors are turning their attention to opportunities in Asian emerging markets. It’s Asia, with its enticing mix of booming middle-class populations and rocketing Smartphone adoption, that arguably offers the greatest opportunity for returns on FinTech investments’, according to Michael Lints, venture partner at Singapore-based VC Golden Gate Ventures. In China, the gradual shift away from a manufacturing-centric economy towards a service and consumer-led economy, coupled with the support of the government through financial incentives, is helping in fostering the innovation and entrepreneurship in the region, which bodes well for the future of VCs. With the power of the internet increasingly breaking down geographic barriers, and the combination of high speed of internet, higher spending power and a freer adoption of technology means that fintech has an entire market of willing and able customers. Not only Asian countries are presenting opportunities for VC investment but also seen is the greater interest in companies that have businesses that are integrated with these regions, as they can tap into the abundant resources, as well as the enhanced logistics network that has been built over the years. Furthermore, in an era of decreasing interest rates, investors are considering alternative investment options, making VC funds an attractive choice. VCs are focusing on unbanked and underbanked sector of Indonesia, with its massive population becoming tech savvy and gaining increasing levels of disposable income. It is the world’s fourth most-populous nation, with Jakarta alone home to 10 million people. The World Bank reported the country’s GDP per capita to have exploded from just $560 in 2000 to $3,374 in 2015, while the Indonesian FinTech Association says fewer than 36% of adults have formal bank accounts. Not only B2B but also the massive B2C market open ups the lucrative era for VCs. According to Michael Lints, venture partner at Singapore-based VC Golden Gate Ventures, payments is a major area of focus for business in the region. “A large number of startups are focusing on the B2C payments market because that’s where there is an open gap, especially when you look at the number of people that never use a bank for their payments. For them is has always been cash but now they are using smart phones. Making these devices a means of doing online payments is

FinTech Trends

We are Omni-channel

teknospire / 07/03/2018

Teknospire goes Omni-Channel

FinTech Trends

Open Banking/PSD2 is all set to shake the financial services industry in 2018

Samiksha Seth / 28/02/2018

Time and again we have positively accepted #Open creativities… be it when Philosophers guided us to have an open mind, Human resource [HR] representatives insisting on Open Communication or the new education system that does not mind in conducting open book test. Being #Open has helped, and this novice initiative – Open Banking is about to set new benchmarks of innovation in the financial service industry.Placing customer at the heart of the banking model, the concept is going to disrupt the banking ecosystem and age-old monopoly. As API’s turn to be the heartbeat of digital banking, the innovation would further disrupt banking services and business models. Open Banking or PSD2 – The Consumer and Expert Views The new directive called PSD2, which came into force on 13 January 2018, was welcomed with mixed emotions. In fact, a survey conducted found that 92 percent of respondents hadn’t even heard of it. Other polls suggest people see the idea of data sharing scary. The Finanser covered the significant headlines of the media across the globe and here is what it says – However, experts like Imran Gulamhuseinwala, head of Open Banking Limited, the non-profit coordinating the system, admits that “it’s going to take a while for us to see new, very different services.” But, he says, once the system’s up and running, “it’s going to be revolutionary.” Many across the industry agree. Another expert from the industry John Gibson who pitched OpenBanking to Treasury says -“I told them, it would be like the App Store but for banking.” While consumers are worrisome to adapt to an open-ended channel, professional believe 2018 would be the year when PSD2 would transform banking. So, let’s dive deep to know how Open Banking could renovate the way we move and use the money. Open Banking Trends to watch out for in 2018 If you are new to Open Banking or Open API or Open Data or PSD2 (Second Payment Services Directive), please read our previous article that may help you to know about Open Banking and Customers Perspective to Open Banking. PSD2 is about to provide new dimensions to Banking services with a core aim to help consumers and yet profitable to the banks. Open Banking concept is loaded with – Improved banking opportunities For interoperability and provide more customer focussed banking services, it is necessary that customers can operate/avail a banking service without having their presence in a particular bank. Open Banking would allow a customer to avail other banking services if they are cost-effective without the need of opening the bank account. Transparent Payment systems How do you know if the monthly shopping at local grocery store saves you more via a debit card of ABC bank or credit card of HHH bank? With publicly accessible data it would help third parties or even let user compare amongst the best possible payment options. Users could send money directly to their family, friends or even for donation without interference from the bank. Evolution of Open Data Standards, Open API Standards, Governance and Security A new framework would evolve dictating the data, API standards that need to be followed at the global level. What kind of security measures and governance is required to support Open Banking? While on the one hand, we might be looking for standards, on the other we also need them to be flexible to accommodate the innovations. Alliance between banks and fintech With Open API concept, Banks and fintech firms could work more closely. While banks get the benefit of strengthening their digital platform, fintech firm gain the customer base and trust. A balanced strategy helps banks to shell out customer focused products and solutions combined with latest technologies. Possible Use cases of Open Banking/PSD2 If you are keen to explore how these use cases could be executed, do contact us here – marketing@teknospire.com or +91 80 4951 8396. We @Teknospire have an experienced team to help you with your Open Banking or PSD2 implementation. References: The disappointing arrival of Open Banking … and the optimistic future Data sharing and open banking To change how you use money, Open Banking must break banks What is Open Banking and PSD2? WIRED explains Open banking – the invisible reform that will shake up UK financial services Open Banking Plans For A Big Year — Even Where Regulators Aren’t Forcing It 2018 Fintech Predictions: Bitcoin rises, the High Street cracks, and Open Banking booms PSD2 Image – Key Points From The Payment Services Directive 2 (PSD2) The Open Banking Revolution Is Imminent The Open Banking Revolution Is Imminent Identifying API use cases