NEED OF THE HOUR – ADOPTION TO A DECENTRALIZED DISTRIBUTED NETWORK?

Samiksha Seth / 13/06/2018

We are seeing technology-driven networks replacing bureaucratically-driven hierarchies,” says VC and futurist Fred Wilson. It seems Big Data buzz has ended, the need of the hour is not on how to gather data but “how to protect it”? How to stop it from being hacked or access by unauthorized third parties. Millennials are maturing not to fall for 50$ free signup; they are looking for ways to still be connected in the virtual world but own their data. While Cloud computing offers benefits like Cost reduction, Scalability, flexibility one of the concern is Data Sovereignty. On similar lines, Open API that is the future of low-cost banking raises concern to customers on how to know who all are using your data? Once a customer authorizes a particular third-party to access their data, how can they be assured it stays with them and is not shared with other third parties? Do you think a decentralized distributed network could be an answer to Data Ownership? Let’s explore… The Need For Decentralization Since ages, we have been governed by centralized authorities and worked with intermediaries. Have you ever fathomed the idea of living without a central power? Be it your family with a head of family or office with a boss or a movement with a leader? On the contrary, we have an inbuilt trait of working with “mutual consensus.” If you do not believe me, imagine yourself driving/walking on the road – while driving you to make sure to follow the rules but there is a mutual trust with fellow drivers that they would follow the rules. A “trust” exists between you and drivers around you. Collaboration is built where all drivers are at the same level – be it if you drive BMW or Fiat. The roads are “open” no barriers no censorship could be applied. Working in a mutually, inclusive environment could help in building a transparent ecosystem. An infrastructure that is trustworthy, robust, dependable, open to development, and accessible from anywhere anytime. What is Decentralized and Distributed Network? Distributed Network Decentralized Network No Data Storage, all nodes provide/exchange information No Central Storage All nodes are equal and have equal rights Few servers provide/exchange information with nodes/clients. All servers are connected to each other A centralized network means it is controlled or run by a single company or individual just for example Facebook or Amazon. On the contrary, a decentralized network is operated by actors/individuals that no one has full control or ability to shut down. Or as Merriam-Webster defines decentralization as “the process of redistributing or dispersing functions, powers, people or things away from a central location or authority.” A Distributed network, on the other hand, as Techopedia says – A distributed network is a type of computer network that is spread over different networks.This provides a single data communication network, which can be managed jointly or separately by each network. While many people think distributed as a synonym to Blockchain technology, it’s partially correct. The blockchain is one of the technologies that use the concept of decentralization and distributed network. Now let’s look at the type of decentralization that exists – Types of Decentralization While every sector has categories, we are specifically talking about software decentralization- Software Decentralization Definition Example Architectural Decentralization The conceptis applied to the machines or devices used in the network. Blockchain Political Decentralization The concept is applied to the governance, i.e., whether a set of individuals controls the network. Blockchain Logical Decentralization The concept is applied to the data structure or interfaces of the network. BitTorrent or Language like English So, for a technology to be DECENTRALIZED and DISTRIBUTED it needs to be – Open and Transparent Accessible from anywhere anytime Trustworthy and secured No Single point of failure or resilient Lower Latency Scalability Can a network be both Distributed and Decentralized? Certainly Yes and a classic example is Bitcoin. Bitcoin a cryptocurrency is distributed because it is a timestamped public ledger and resides on multiple computers. However, it is also decentralized because if one node fails it could still operate,i.e.,any network that uses a blockchain alongside other peer-to-peer tools can be distributed and decentralized. Why Open API and Cloud Computing Need integration with Distributed and Decentralized Network Quite recently when Indian government was evaluating the need to force Chinese phone manufacturers to set up servers in India, it was a concern of Data breach or Data leaks. In another move,Apple Inc will store the keys for Chinese iCloud accounts in China itself. On the other hand, while Open Data/Open API helps in availing new business and product models, it also raises concerns about data privacy and data ownership. Integration of Open API or Cloud computing with Distributed and Decentralized database can help in resolving these issues and would be cost-effective. OpenAPI/PSD2 – Gateway to Decentralized and Distributed Network If you want your car to perform on the road, invest in road infrastructure.Road plays a vital role in improving the performance of the car. Similarly creating a decentralized, distributed network and offering Open APIs to perform would enhance the performance of the solutions/products provided by a firm. Just for example if you are keen to know your balance of bitcoin and transaction details or want to integrate it in your financial portfolio app, all you need to do is look for projects that offer Open APIs like BlockCypher or Bitgo or Blocktrail. Build your JSON RPC that could support multiple API calls and get the data. Blockchain info also provides open API to get exchange data from across the bitcoin market, blockchain wallet or charts and statistics to analyze the spending’s. Quite recently Mastercard launched their Blockchain solutions with an offering of Open API for businesses to connect and communicate. The Blockchain solution that addresses the cross-border payments offers flexibility and scalability with open API that could be used by third parties to integrate with their solutions. Another artistic use case of distributed, decentralized network integrated with Open API is

Technical Updates

OPEN BANKING – EXAMPLES, USE CASES, IMPLEMENTATION, OPPORTUNITIES

Samiksha Seth / 31/05/2018

In olden days or even a decade back Banking as a service [BaaS] was only taken by trusted entities – BANKS. However, with the technology innovation Banks, Fintech and GAFA [Google, Apple, Facebook, and Amazon] are tapping onto the opportunity open up by the PSD2 directive to offer BaaS. While customers are still skeptical about data sharing and data security, the new segment of market players vouches on How Open Banking would change the face of Banking forever? If you are new to Open Banking – Please read our post Everything You Need To Know About – Openbanking, Openapi, Opendata to help you get started But are the firms and customer-ready? Well, some of the interesting surveys will help us in analyzing that. While Accenture survey highlights Nearly 20% Of Banks Have Already Invested In Open Banking-related Initiatives—77% Will Do So By 2019 – Accenture Ipsos survey talks about the consumer’s readiness – 63% of UK respondents [read it as Bank account Holders] see the forthcoming developments [read it as PSD2 directive] as ‘unique’ – Ipsos So what kind of potential does Open Banking/PSD2 talks about? What kind of services evolves with Open Banking? Would customer benefit from Open Banking? Would data sharing be at the cost of data security? Let’s explore to find out – Possible Examples of Open Banking OR Use Cases of Open Banking Our ABC of Open Banking infographic covers all the terminologies of Open Banking. Make sure to explore it here. Cash Management System/Money Management System How many bank accounts does a person have? An individual may start with a savings account during his school/college life, that then gets turned into a salary account. Pursuing higher education with education loan means a new bank account with the concerned bank, that could also extend to home loan account, car loan account and even personal loan account. But how do you keep track of the credit/debit of all of these accounts? If all of the bank accounts build an open API that let a third party read the transactions, all of this data could be exported into a mobile app. Taking a step further if the individual grants permission to the third party, they could also transfer funds to other accounts. Integration with Artificial Intelligence [AI] apps Would you like to turn any of your screens into a bank? Be it when you visit a branch that has an LED display or from your tablet/laptop? Coupling Open API and interactive screen with the help of voice and gestures could formulate a digital environment that is similar to visiting a bank branch. Paperless Cheque Deposits A possibility of scanning the cheque via an app or reader and converting them instantaneously into Digital Cheque. Sending it to the concerned person, where the person deposits it in a virtual drop box and processing is done. Cash Access Every time bank provides us with debit or credit card, they charge it. Then there is an issue always to carry it and most importantly stand in long queues at ATM to get cash. Could our mobile phone or watch be turned into a debit or credit card? An app or software when accessed ask for your pin and loads the card of your choice, you either directly use it at any of the shops or get cash dispersed from ATM by merely tapping it. Integration with IoTs With voice assisted payments adopted in real life, it would be fascinating to see Siri or Alexa making payments to DTH, electricity bills or at the weekly grocery store. While cables, routers, kitchen appliances and many other devices are getting smarter each day, Open API could let them communicate with each other, thereby offering better connectivity and choices to the consumer. I would be thrilled if my printer senses its cartridges is finished, browse the internet and orders the best deal available. Personal Finance Advisor or Chatbots Open API could help you balance your financial portfolio and even could be your financial advisor. Software powered by natural language processing offers you to communicate with your advisor via a mobile app. It would not only help in analyzing your spending’s and investments but also answer all your queries. Who says – hiring a personal advisor is just for wealthy! FX Conversion The physical boundaries of countries are shrinking, individuals now communicate, explore, shop and work globally. How could then we restrict ourselves to one currency? We need quick money USD and in EUR and may be in INR and SGD, and all this needs to be done now. Open API could be a savior in such situation. While a free, simple, and lightweight API could help in providing current and historical foreign exchange rates, based on users permission, it could even get the best conversion rates. With Open API the possibilities are limitless, I might not be surprised if my umbrella has a built-in the weather app and warns me of probable rains in the coming week? Or even if it has been damaged, suggest me the best possible deal before the rainy season starts. Open API lets the network to expand and communicate with each other, each device like to share, it is helping us to create a Social network of machines. If you are keen to know whether OpenBanking is comforting to customer or not – read our post Open Banking – Is It Comforting To Customers Or Not? Open Banking Opportunities Banks have been trusted entity by customers for years because of regulation and that helped them earn a good and loyal customer base. On the other hand fintech the new entity that has captured eyeballs but is yet to earn the trust, and government and fintech start-ups are working closely to make it happen. PSD2 brings firms that want to offer account information or payment initiation services under the regulatory umbrella. While Banks can use this opportunity to offer new services to its customer, fintech start-ups could collaborate and help banks and financial

Finance, Financial Inclusion, FinTech, TechFin, Technical Updates

TechFin or FinTech

Vandana Kaul / 17/05/2018

Sometimes you need to look at things….from another point of view. This is exactly what you need to do when you have to decide between Fintech and TechFin as there is a very thin line which differentiates them from each other. It’s your pick between the innovator v/s the reigning. While, the Innovator is ‘Taking process to technology’, coined as term FinTech, the Incumbent is ‘Taking technology to process’, coined as term TechFin. So, What’s so technical about FinTech and TechFin? Technically speaking, Fintech is a space where financial services are delivered through a better user experience using cutting edge technology. TechFin on the other hand is where a firm that has been delivering technology solutions, launches a new way to deliver Financial services. You need to comprehend both to decide on your pick. The technology and finance are common between the two; the difference lays in the way you apply it. This difference is much higher than just spelling them or writing them in two different ways: Fin-Tech or Tech-Fin TechFin When the banks plan on utilizing technology to improvise or enhance existing financial processes and operations, their focus remains on how to use technology to bring superior efficiency and productivity from existing financial processes and operations. The same is done with the objective to magnify the existing experience and capabilities in financial services domain. The aspirations of transformation or disrupting the process are eliminated. The reason behind TechFin companies not looking towards disruption is the fact that their customers demand- Safety Reliability Stability Legacy No risk and minimal change Therefore, large retail commercial banks seldom make changes in their mobile apps, as a slight change in the app invites customer complaints and inconvenience. For their customer, change implies exposure to risk and any change is interpreted as offensive. Such banks avoid changes to skip the negative publicity from these incidents. TechFin companies, therefore, stick to what Jack Ma coined them as – “Rebuilding system with technology”. Jack Ma during the China Conference organized by the South China Morning Post emphasized and I quote, “Fintech takes the original financial system and improves its technology, TechFin is to rebuild the system with technology. What we want to do is to solve the problem of a lack of inclusiveness.” The best example of a TechFin company Ant Financial Services Group, an Alibaba affiliate company, in June 2017, launched “Fortune Accounts”, a new feature on its wealth management app- Ant Fortune. The platform which allows consumers to buy a huge range of investment products will now allow third-party financial institutions to set up an “Account Page” of their own. By doing so, they will directly reach consumers without the traditional way of competing on online supermarket format, and help customers get financial advice or promote their products. This is a classic case where the process of investing in financial products has been improvised using technology, helping financial institutions receive backend data of users to receive traffic on their company’s stores. Firms like Amazon (US), Apple (US), Facebook (US), Google (US), Microsoft (US), Samsung (Korea), Baidu and Tencent (China), Vodafone (UK, India and Africa), and Uber (US) all offer various forms of payment, lending and/or other financial services. The entry of these firms signals a shift from financial intermediary (FinTech) to data intermediary (TechFin). FinTech FinTech, on the other hand, takes the financial process and transforms it utilizing technology to make its mark. Generally, start-ups use FinTech to create Apps, APIs, and analytics, grab diversity, to disrupt and evolve. For example, the existing products or services like – loans, savings, investments, payments or trading are redefined to profitability, speed, and prudence. They prefer transforming the process using technology, usually eliminating the middleman and intermediaries. Taking the example of traditional and P2P lending, traditional lending will allow an investor to deposit funds and earn interest. A borrower can borrow money from banks, following a cumbersome documentation and approval process, which takes time and at times may face rejections. The approvals are based on pre-historic financial transactions. A FinTech P2P platform allows the lender to directly lend money to the borrower and earn interest, while the borrower uses an online platform to receive instant approval and funds. FinTech Vs TechFin FinTechs take the risk and have been welcomed by millennial and customers who are ready to explore and experience innovation. People who are ‘on the go’ and use the mobile platform embrace transformation. FinTechs are ready to disrupt existing processes and financial services ecosystems with use of emerging technology. The limitations of FinTechs are different as compared to TechFins. Unlike TechFins, who have the limitation of huge credit risk, FinTechs face the challenge of regulators. The global economic ecosystem has still not completely accepted the way FinTechs work. There are rules and regulations which they need to adhere to remain operational. Another most critical hazard which they are greatly exposed to is Safety. The chances of privacy risk and hacking always haunt them. To summarize the difference between the two, checkpoints are: TechFin Process first approach. The incumbent, usually large banks participate. Improvise the existing process Do not take the risk Customers prefer legacy and trust Enhance the proficiency of staff for the betterment of process using technology Huge credit risks FinTech Technology first is the approach. Start-ups, usually participate Follow transformation in the process Do not hesitate in disrupting the existing process. Youngsters, millennial and professionals appreciate them. Eliminate the middleman for faster and superior experience. Limitations of privacy, safety, and regulators. Closure There is no better way to summarize, the difference between the two, by quoting Jack Ma, the father who coined the term TechFin: “There are two big opportunities in the future financial industry. One is online banking, where all the financial institutions go online; the other is internet finance, which is purely led by outsiders.” Though a lot of

Financial Inclusion, FinTech, FinTech Trends, Open Banking, Technical Updates

Open Banking – Is it comforting to customers or not?

Vandana Kaul / 12/01/2018

Big changes are on the horizon. You may have seen or heard about Open Banking, PSD2, and CMA in the news over the past year. Or, you may be hearing about them for the first time right now. Fortunately, Open Banking is right here and it is going to stay. In the banking sector, the concept of “open” can seem contradictory. Banks traditionally have a “duty of care” to protect their assets rigorously, as required by regulators and customers. Traditional Banking is been the same for…just about forever. For the most part, the power dynamic between banks and their customers has stayed about the same. Whether you bank in person, over the phone, online or mobile, the relationship with banks hasn’t changed much alongside the technological advancements. You set up an account with your bank, they facilitate the ebb and flow of your money, and, as a result, they hold the data around that money. All of the histories around your purchases, loans, payments, debits, and credits rests with them. Now banking is about to undergo a major shift. With the ‘Open Banking’, (the outcome of the beautiful blending of Financial and Technology sectors), all of that is going to change. With…… Improving overall customer experience by engaging them and to attend to customer needs in a secure, agile, and future-proof method. New Revenue streams by increasing digital revenue from new channels. As rightly said by Kristin Moyer, Vice President of Research and Distinguished Analyst at Gartner and I quote……“Open Banking is about making everything for sale. It provides a new way to increase digital revenue for the banks that are willing to think differently about what it means to be a bank.” Sustainable service model for underserved markets. ………… open banking is definitely a welcoming change. BANKING: THEN & NOW In 1872, when first wire transfer happened nobody would have imagined how the entire scenario will change from wire transfer to ATM’s in the 1960s to telephone banking in 1980s. 1997 saw the rise of internet banking which paved the way to contactless payment in 2007 and mobile banking in 2010, but still, the traditional ways of banking continued. But NOW Human-Centered Fintech is making way for personalization and open banking. What is Open banking? Open Banking is a financial services term as part of financial technology that refers to: The use of Open APIs that enable third-party developers to build applications and services around the financial institution. Greater financial transparency options for account holders ranging from Open Data to private data. The use of open source technology to achieve the above. Thus, “Open Banking is the possibility of creating new digital business and ecosystems through APIs provided by the banks. How does Open Banking work? Open Banking will enable companies to give more accurate personal financial guidance, tailored to your particular circumstances and delivered securely and confidentially. To provide tailored advice, companies need to know how you use your account. At the moment, to get personal financial guidance, you have to hand over your confidential banking information to price comparison websites. Source: by Wikimedia Commons Open Banking will use APIs (Application Programming Interfaces) to share customer information securely. Companies will be able to use open banking APIs to see your transaction information to tell you what you might save when considering the current account best suited to you. Or if you run a small business you could find the best deals for your business accounts and loans. No in-betweens, no interruptions, just pure and simple direct customer-to-service relations Open Banking at its best. HOW BIG IS OPEN BANKING?? ….. well the picture says it all Source: https://goo.gl/VmjhSy WHO’S WHO ……ZOOMING ON OPEN BANKING Source: https://goo.gl/VmjhSy So, how does it help, and why does it matter to you? To answer these questions, let’s take a look at what open-banking brings to the digital market and on your FinTech plate. Source: europa Transparency of Data Companies connect with third-party APIs by developing apps which provide financial services for their customers and connect with banking sectors/firms for access to customer data and personal info. This transparency of data leads to the establishment of improved customer relations. Through open-banking services, you’ll be able to invest in financial products manage your money get detailed financial statements generated pay from one platform to the other (like how you use Paytm for paying your BESCOM bills or the Simpl/LazyPay wallet to pay for other services). Think open-banking, think big-picture. No back and forth dialogs, no payment hassles or dealings with banks. Direct peer-to-peer payments and transactions between customers and businesses. Period. Image Source: Medium.com Safety Benefits If safety wasn’t a priority, we’d all be worried. Open-banking doesn’t compromise on security and leverages Fintech services to adapt to growing security needs. With Agile technologies operating on robust platforms, open-banking is built on a platform of secure systems which means your personal data doesn’t leak to anonymous parties or get hijacked. Banks share personal data through APIs and intermediaries and connects developers with payment networks like VISA and MasterCard for the seamless exchange of money balances and financial information. Cybersecurity measures and anti-intrusion technologies come integrated with APIs, thus building upon layers of transactional security. Image Source: Zanders.EU Consumer-Centric Approach At the end of the day, we love our services and open-banking matches consumer expectations. From Uber’s APIs integrating Google Maps and payment gateways to companies using Big Data, Analytics, and FinTech services to leverage creative products and services, open-banking gives users total control over their financial exchanges. Customer engagement as is (left) and after PSD2 (right) Source: europa Data sharing in financial services tend to be the risk- and permission-based, with required audit trails, and subject to regulation and risk management. If done well, however, it can deliver increased security through enhanced know-your-customer capabilities, identity validation, and fraud detection. The current

FinTech Products Market Survey, Technical Updates

Technology Needs of a Payment Bank and Small Finance Banks, Fintech firms and Their Banking Solutions

Samiksha Seth / 13/10/2017

Banks and Technology In Part One of our Bank and Technology series we spoke about the technologies needed by Public Sector Banks, Private Sector Banks, and Foreign Banks and in Part two we narrated technologies desirable by Regional Rural Banks [RRB’s] and Cooperative Banks [ State and Urban Cooperative Banks]. Now in the final and concluding part of our Bank and Technology series would talk about the technology needs of Payment Banks and Small Finance Banks. We would also discuss the fintech firms in India, their product offerings and the banks they are helping to enable Digital Banking for their customers. Technologies Needed by Payment Banks Although the Payments Banks in India are newly launched[in principle in 2015 and first payment bank was Airtel started in 2016] and the need of the hour, yet they need to adapt to some of the latest technologies to stand tall against their competitors. Banks Examples of Bank Who is the Target Audience What Technology They Should Adopt to How a Technology Would Help the Banks Payment Banks 1.Airtel Payment Bank 2. Paytm Payment Bank 3. Vodafone M-Pesa They came into existence to serve – 1. Small businesses 2.Unorganized sector 3.Low-income households 4.Farmers and migrant workforce 1. Mobile App Launch of banking services via Mobile App and Internet helps customers in availing services anytime from anywhere across the globe. 2. e-KYC acceptance Reducing carbon footprints would help the mother earth but also would speed up the process of essential services like Opening Account or Loan Reimbursements 3. Use of Biometrics Biometrics would help in reducing fraud and identifying potential security threats. 4. Digital Wallets/e-wallets Paying for monthly bills or shopping online, e-wallets could be handy for quick money needs to the customer. Technologies Needed by Small Finance Banks Small Finance banks that were launched to support the small business units, farmers and most importantly the unorganized sector of the economy for their empowerment and financial inclusion. Some of the essential technologies that could help Small Finance banks in attaching these individuals to Bank System are – Banks Examples of Bank Who is the Target Audience What Technology They Should Adopt to How a Technology Would Help the Banks Small Finance Banks 1.Janalakshmi Small Finance Bank 2.Capital Lab Small Finance Bank 3.Disha Small Finance Bank They are not allowed to lend but would eagerly accept the deposits. Hence the target audience for them is 1.Small farmers 2.Unorganised workers 3.Small business units 1. Mobile App Launch of banking services via Mobile App and Internet helps customers in availing services anytime from anywhere across the globe 2. e-KYC acceptance Reducing carbon footprints would help the mother earth but also would speed up the process of essential services like Opening Account or Loan Reimbursements 3. Use of Biometrics Biometrics would assist in reducing fraud and identifying potential security threats 4. Agent Banking Solutions With remote areas/rural areas not having enough bank branches services like Agent Banking, ATM, PoS or e-corners could add to get more customer satisfaction and business to banks FinTech Firms Helping Different Banks as Technology Partners We had a glimpse of different banks and their technology needs, let’s also look at the fintech firms in India that are trying to build a comprehensive banking solution to support the digital wave in India. While the list here mainly focuses on firms offering products to banks of rural areas, it also has firms providing crime surveillance solutions for fraud and thefts. Fintech Firms What They Offer Partners Novopay Mobile Payment App to set up bank account and structure finances RBL Bank, Bank of India, IDFC Bank VAYA Finserv Offers core banking to rural areas. Loans to women and self-help groups. YES Bank, The Ratnakar Bank Vortex Engineering Private Limited Offers the lowest power consuming ATM’s Set up 545 ATM’s that includes 300 solar powered ATM’s for State Bank of India Eko India Financial Services Offers no-frills bank accounts and deposit, withdrawals and remittance services to unbanked migrants via a mobile device State Bank of India, Yes Bank, ICICI Bank Finacus Offers Core banking solutions, aadhaar based solutions, Payments via Mobile, Tablet, Agent Banking, etc Bharat bank, Apna Sahkari Bank, Mahesh bank SesameIndia Offers Core banking, Agent banking, Mobile Banking, Business Intelligence, Different modes of payment solutions and Risk and Recovery Management KUC Bank, Thenjipalam Cooperative Urban Bank, Malapurram Service Cooperative Bank InfrasoftTech Offers Core banking, AML compliance and financial crime surveillance, Lending management, and microfinance solution 450 clients across 36 countries over 300 banks Sarvatra Offers cloud-based Mobile Banking, IMPS services, and switch, Aadhar enabled payment eKYC, etc Nilambur Urban cooperative bank Teknospire Offers Agent Banking and Payment Solution, Mobile Money Suite and Payment Switch . They also have solutions to Health tech for the rural population. Oakfin Finance, Ebazara, Mannapuram, Mandeshi Bank References: Payments BankList of banks in India Grameen_BankWhat are Payment Banks? Why India Needs Payment Banks? All you need to know about small finance banks What are small finance banks and payment banks? How are they different from commercial banks? Here’s how top 5 Indian banks use technology Banks collaborate with new age fintech companies for rural banking Impact of financial inclusion drive through co-operative banks – a study with special reference to chavara block Performance Evaluation of Regional Rural Banks in India

FinTech Products Market Survey, Technical Updates

Which Technologies Should Be Adopted By Regional Rural Bank And Cooperative Banks ?

Samiksha Seth / 20/09/2017

Banks and Technology In our Part One of the Banks and Technology Series we spoke about the technologies needed by Public Sector Banks, Private Sector Banks, and Foreign Banks. This post is part 2 of the same series, and we would continue our discussion on technologies desirable by Regional Rural Banks [RRB’s] and Cooperative Banks [ State and Urban Cooperative Banks] Technologies to Be adopted by Regional Rural Banks[RRBs] As per a report the RRB’s with their formation on October 2, 1975, have attained a unique place in providing agricultural rural credit. With their initiatives, they have managed to provide banking services to the unbanked population Banks Examples of Bank Who is the Target Audience What Technology They Should Adopt to How a Technology Would Help the Banks Regional Rural banks 1.Chhattisgarh Rajya Gramin Bank 2.Karnataka Vikas Grameena Bank 3.Vidarbha Kokan Gramin Bank Started with a simple motive to help the rural/BPL individuals, they mainly target – 1.People living in rural/remote areas 2. In need of loans without collateral 1. Mobile App Launch of banking services via Mobile App and Internet helps customers in availing services anytime from anywhere across the globe. 2. e-KYC acceptance Reducing carbon footprints would assist the mother earth but also would speed up the process of essential services like Opening Account or Loan Reimbursements 3. e-banking Enabling Banking services via the internet would help customers accessing banking from anywhere anytime. 4. Use of Biometrics Biometrics would assist in reducing fraud and identifying potential security threats 5. Branchless Banking DIY Banking corners like e-corners launched by SBI or e-hut by IDBI bank to access banking anytime. 6. Agent Banking Solution With remote areas/rural areas not having enough bank branches services like Agent Banking, ATM, PoS or e-corners could add to get more customer satisfaction and business to banks Technologies to Be adopted by State Cooperative Banks[SSBs] As stated by Academia in a study – The state cooperative bank is a federation of the central cooperative bank and acts as a watchdog of the co-operative banking structure in the state. Its funds are obtained from share capital, deposits, loans and overdrafts from the Reserve Bank of India. The state co-operative banks lend money to central co-operative banks and primary societies and not directly to the farmers. Banks Examples of Bank Who is the Target Audience What Technology They Should Adopt to How a Technology Would Help the Banks State Cooperative Banks 1.Andhra Pradesh State Co-operative Bank 2.Karnataka State Co-operative Apex Bank 3.Delhi State Co-operative Bank Owned by State, its open to all individuals residing in a particular state. It usually targets – -People at state/district level like small scale industries or local businessmen 1. Mobile App Launch of banking services via Mobile App and Internet helps customers in availing services anytime from anywhere across the globe 2. e-KYC acceptance Reducing carbon footprints would help the mother earth but also would speed up the process of essential services like Opening Account or Loan Reimbursements 3. e-banking Enabling Banking services via the internet would help customers accessing banking from anywhere anytime. 4. Use of Biometrics Biometrics would assist in reducing fraud and identifying potential security threats 5. Branchless Banking DIY Banking corners like e-corners launched by SBI or e-hut by IDBI bank to access banking anytime. Technologies to Be adopted by Urban Cooperative Banks[UCBs] As stated by Academia in a study – The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary cooperative banks located in urban and semi-urban areas. These banks, till 1996, were allowed to lend money only for non-agricultural purposes. This distinction does not hold today. These banks were traditionally centered on communities, localities, workplace groups. They primarily lend to small borrowers and businesses. Today, their scope of operations has widened considerably. Banks Examples of Bank Who is the Target Audience What Technology They Should Adopt to How a Technology Would Help the Banks Urban Cooperative Banks 1.Apna Sahakari Co-Op Bank Ltd. 2.Ahmedabad Mercantile Co-Op Bank. 3.Kalupur Commercial Coop. Bank Owned by State is open to all individuals but is a preferred choice by – -Small scale sectors – Local people in business operating within state or semi-urban area 1. Mobile App Launch of banking services via Mobile App and Internet helps customers in availing services anytime from anywhere across the globe 2. e-KYC acceptance Reducing carbon footprints would assist the mother earth but also would speed up the process of essential services like Opening Account or Loan Reimbursements 3. e-banking Enabling Banking services via the internet would help customers accessing banking from anywhere anytime. 4. Use of Biometrics Biometrics would assist in reducing fraud and identifying potential security threats 5. Branchless Banking DIY Banking corners like e-corners launched by SBI or e-hut by IDBI bank to access banking anytime. This post is an effort to streamline the efforts put in by Banks, Fintech firms and NGO’s to make Banking accessible to one an all. If the RRBs and Cooperative banks adapt to these technologies, it would not only help the providers in maintaining transparency but also would make banking reachable to remote and rural areas. This post is part 2 of banks, and their technology needs series, in case you have missed our part one. Here is the link to part One Article – Which Technology Do Public Private Sector And Foreign Bank Need to Adopt The next part of the series would talk about technologies to be adopted by Payments Banks, Small Finance Banks and the fintech providers in India with their banking solutions. Stay Tuned! References: Payments Bank List of banks in India Grameen_Bank What are Payment Banks? Why India Needs Payment Banks? All you need to know about small finance banks What are small finance banks and payment banks? How are they different from commercial banks? Here’s how top 5 Indian banks use technology Banks collaborate with new age fintech companies for rural banking Impact of financial inclusion drive through co-operative banks – a study with special reference

FinTech Products Market Survey, Technical Updates

Which Technologies Do Public, Private Sector and Foreign Banks Need to Adopt ?

Samiksha Seth / 06/09/2017

What could be the list of financial services for a child? Well, hypothetically he could use all, but necessarily he just needs a bank account/fixed deposits for his savings. Hence, most of the banks offer a minor account that allows parents to open in the same bank. Well, this may be a marketing strategy for a bank but it needs to offer what customers need. In a similar fashion could we be optimistic for rural banks that are struggling to lure customers to offer AI or IoT solutions? Indeed not, hence @Teknospire we bring to you specific innovations that are needed by a bank based on their categorization. Types of Banks in India During my adolescent days, I assumed any word that has “bank” suffixed to it, is a bank with similar features. Until recently my perception about them changed. Do you guys know we have seven different types of banks operating in India. Well, take a look – Banks and Technology Technologies Needed by Public Sector Banks Banks Examples of Bank Who is the Target Audience What Technology They Should Adopt to How a Technology Would Help the Banks Public Sector Banks 1. State Bank of India 2. Punjab National Bank 3. Bank of Baroda Open to all, varies from urban to rural people Tech-savvy to technotard HNI to BPL individuals 1. Branchless Banking DIY Banking corners like e-corners launched by SBI or e-hut by IDBI bank to access banking anytime. 2. Mobile App Launch of banking services via Mobile App and Internet helps customers in availing services anytime from anywhere across the globe 3. Data Analytics and Business Intelligence Structuring and organizing the data with intelligent algorithms could help customers in planning their financial portfolio or could get a better picture of their spending’s. 4. e-KYC acceptance Reducing carbon footprints would help the mother earth but also would speed up the process of basic services like Opening Account or Loan Reimbursements 5. Quick Funds Transfer via IMPS, NEFT, RTGS With technology advancement like UPI based payments or IMPS, funds transfer is instantaneous and could be accessed from anywhere anytime. 6. Use of Biometrics Biometrics would help in reducing fraud and identifying potential security threats. 7. Cloud Technology With data increasing at an exponential rate, physical servers may not be enough to handle them. Hence cloud technology could help users in providing flexibility with no compromise in security. 8. Robotics to enable DIY banking/Improved Customer Service How about Robotics helping in mundane jobs like segregating and assign numbers to customer who come to banks? Could help in basic queries like My account balance? Or mini-statements? 9. e-banking Enabling Banking services via internet would help customers accessing banking from anywhere anytime. 10. Plastic Money Issuing of credit cards/debits cards could enhance digitization and a way to go cashless. 11. Remote Banking With remote areas/rural areas not having enough bank branches services like Agent Banking, ATM, PoS or e-corners could add to get more customer satisfaction and business to banks Technologies Needed by Private Sector Banks Banks Examples of Bank Who is the Target Audience What Technology They Should Adopt to How a Technology Would Help the Banks Private Sector Banks 1.ICICI Bank 2. HDFC Bank 3.Axis Bank Open to all but is a preferred choice to individuals – – From corporate sector – Looking for customer oriented services 1. Mobile App Launch of banking services via Mobile App and Internet helps customers in availing services anytime from anywhere across the globe 2. Video Conferencing Enabling Video conferencing to your customer could help in building trust and they could get quick query resolution. 3. Data Analytics and Business Intelligence Structuring and organizing the data with intelligent algorithms could help customers in planning their financial portfolio or could get a better picture of their spending’s. 4. e-KYC acceptance Reducing carbon footprints would help the mother earth but also would speed up the process of basic services like Opening Account or Loan Reimbursements 5. Quick Funds Transfer via IMPS, NEFT, RTGS With technology advancement like UPI based payments or IMPS, funds transfer is instantaneous and could be accessed from anywhere anytime. 6. Use of Biometrics Biometrics would help in reducing fraud and identifying potential security threats. 7. Cloud Technology With data increasing at an exponential rate, physical servers may not be enough to handle them. Hence cloud technology could help users in providing flexibility with no compromise in security. 8. Robotics to enable DIY banking/Improved Customer Service How about Robotics helping in mundane jobs like segregating and assign numbers to customer who come to banks? Could help in basic queries like My account balance? Or mini-statements? 9. Plastic Money Enabling Banking services via internet would help customers accessing banking from anywhere anytime. Issuing of credit cards/debits cards could enhance digitization and a way to go cashless. Technologies Needed by Foreign Banks Banks Examples of Bank Who is the Target Audience What Technology They Should Adopt to How a Technology Would Help the Banks Foreign Banks 1.HSBC Bank 2.Citibank 3.Commerzbank The Target audience for these banks are – 1. Corporate Firms 2. HNI individuals having operation overseas 3. NRI individuals 1. Wearable Devices With a wearable device, banks could get information in real-time. Just for example if you went to a car dealer, the banks could help you in choosing the best financing options. 2. Mobile App Launch of banking services via Mobile App and Internet helps customers in availing services anytime from anywhere across the globe 3. Video Conferencing Intelligence Enabling Video conferencing to your customer could help in building trust and they could get quick query resolution. 4. Data Analytics and Business Intelligence Structuring and organizing the data with intelligent algorithms could help customers in planning their financial portfolio or could get a better picture of their spending’s. 5. Cloud Technology With data increasing at an exponential rate, physical servers may not be enough to handle them. Hence cloud technology could help users in providing flexibility with no compromise in security.

Technical Updates

JIRA – How a simple tool could empower a techie’s life @Teknospire

Samiksha Seth / 15/11/2016

Early in 2006, it was already few years of JIRA launched when I got a chance to use JIRA, I was not very impressed by its interface and interactions, as there were already established tracking tools both commercial and open source variants. However, later when I revisited in 2012 that was a complete overhaul and new experience of matured system ! Since then I have been a great fan of JIRA tool, a must by every team to track their progress and issues. Don’t believe me? Then this post is just for you – What is JIRA?JIRA is a management tool that helps is tracking a project in its various stages like issues, requirements or bugs. For any type of project be it information technology or other domain. It’s crucial to plan, track, and release great product and JIRA helps in achieving that goal. JIRA is highly customizable and can be tailored to fit any workflow we need. JIRA is one of the prime solution from well known engineering support system from Atlassian. Adopted since 2002 by industry from Tier-1 giants to smallest start-ups across the globe.. Features of JIRA So, what JIRA capable of? Track Projects, engineering milestones, tasks, bugs or anything! Easily fitted for any team size ranging from 2 to 100s. Agile teams can stay focused on delivering iterative and incremental value, as fast as possible, with customizable scrum boards. Flexible kanban boards give your team full visibility into what’s next so you can continuously deliver maximum output in minimal cycle time Easy Integrations with various other applications means more power to JIRA and more efficient is team. 1000+ add ons, Install plug-and-play add-ons from The Atlassian Marketplace to extend JIRA Software to fit multiple use cases as readily extendible Connect JIRA Software to Bitbucket or GitHub and provide your team with end-to-end traceabiliy, from backlog to deployment Create custom workflows of any size that match the exact way your teams build, test, and release software. This allows you to track multiple, unrelated projects all within a single JIRA instance. Integrate JIRA Software with all of the tools that your team is already using by leveraging its robust set of APIs Teams have access to more than a dozen out-of-the-box reports with real-time, actionable insights into how their teams are performing sprint over sprint. Use JIRA Query Language (JQL) to create quick filters that allow you to see exactly what you need in a single click. Fully loaded with Disaster recovery, helps you in reaching out to data in case of emergencies. Evaluate your evelopment stage, unless you know where you are, you won’t be able to hit the deadline. Accessible through dedicated deployed module or cloud hosted as well for managing capex/Opex costs. Flexible incremental licensing model along with growth. Atlassian professional support with highest quality and participation to solve / support JIRA usage. Who Should Use JIRA? Ideally, it could be used by any of the firms of any team size. However, JIRA is considered to be the best management tool for teams following Agile methodology. However, if you are interested to know how many users currently use JIRA, here’s a snippet – Why JIRA ? Answer to these questions as YES/NO Are you looking for a modern yet simple to use tool? Are you looking for a tool that understands Agile and its terms? Are you looking for a tool that is compatible across various browsers? Are you looking for a tool that supports cloud deployment, on premises and Data Centre? Are you looking for a tool that supports seamless integrations to third party applications? Are you looking for a tool that supports out of box reporting? If you have answered a YES to all the questions above, JIRA is the answer! JIRA @TeknospireAt Teknospire JIRA is used as an Issue and Task Tracking Tool so it covers – issue tracking, reports, and task tracking. It helps us to see the progress of each task with an estimate on how much is yet to be achieved. Teknospire is a blogSmall bunch of enthusiast who are aiming to deliver quality software products to make it a delightful experience for the user. JIRA has in a way helped us a lot in delivering what we have promised. Within our team, once the task is created it is monitored on a daily basis, and if there are any issues/bugs with respect to the task, they are linked to the task and raised as bugs. It helps us in getting a clear picture of what is blocking our execution and how to get it moving. JIRA helps us in getting monthly reports on issue status. Having feature of voters and watchers list will help us in adding/removing people in a particular issue. It allows us to add screenshot or bug report which help us to understand where actually issue exist . JIRA is undoubtedly the market leader when it comes to Project Management tool. So are you ready to explore? References: JIRA Software is the #1 software development tool used by agile teams Build the new shape of IT Atlassian Documentation