apidays LIVE India 2022_The Rise of Open Finance.pptx
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The document discusses the evolution of fintech, highlighting the rise of open finance and its implications for financial services across various sectors. It covers trends, regional initiatives, and technological advancements related to open banking and financial inclusion, specifically in India. Key elements include the integration of diverse financial products, regulatory developments, and the transition towards a more democratized financial ecosystem.
apidays LIVE India 2022_The Rise of Open Finance.pptx
- 1. @whitesig ht_ © 2022 WhiteSight 0 © 2022 WhiteSight. The next wave of FinTech Evolution The Rise of Open Finance Sanjeev Kumar Founder & CEO,
- 2. @whitesig ht_ © 2022 WhiteSight 1 2022 SERIES OF EVENTS New York JULY (HYBRID) Australia SEPTEMBER (HYBRID) Singapore APRIL (VIRTUAL) Helsinki & North MARCH (VIRTUAL) Paris DECEMBER (HYBRID) London OCTOBER (HYBRID) Hong Kong AUGUST (VIRTUAL) JUNE (VIRTUAL) India MAY (VIRTUAL) APRIL (VIRTUAL) Dubai & Middle East JUNE (VIRTUAL) Check out our API Conferences www.apidays.global Want to talk at one of our conferences? apidays.typeform.com/to/ILJeAaV8
- 3. @whitesig ht_ © 2022 WhiteSight 2 Mindset Maketh Man! Ecosystems >> Enterprises!
- 4. @whitesig ht_ © 2022 WhiteSight 3 All Music All Communications All Content All Entertainment All Shopping All Finance Truly Disruptive outcomes are an outcome of full-stack transformation
- 5. @whitesig ht_ © 2022 WhiteSight 4 Payments Transaction Products Bank Accounts Investment Accounts Insurance Plans Fiat Currency Treasury Bonds Monetary Policy Instruments Foreign Exchange Reserves Financial Products Monetary Products Financial and Monetary Products Factory
- 6. @whitesig ht_ © 2022 WhiteSight 5 Enable access to create financial services Improve efficiency, Scale and operating costs Open Financ e Democratizing access to financial services Manufacturers Enablers Distributors Financial and economic systems are being melted down and reconstituted
- 7. @whitesig ht_ © 2022 WhiteSight 6 The Rise of Open Finance 2015 2016 2017 2018 2019 2020 2021 2022 Regula tory Intere st Bank Initiatives FinTech Adoption Investor interest M&As New Entrants
- 8. @whitesig ht_ © 2022 WhiteSight 7 The Global Finance Maturity Index Source: Tink Report, May 2022
- 9. @whitesig ht_ © 2022 WhiteSight 8 Adjacent Industry Trends 01 Open Finance
- 10. @whitesig ht_ © 2022 WhiteSight 9 FinTech Omni channel retail/ e-commerce FinTech E-grocery Travel and hospitality E-grocery Travel and hospitality Ecosystem Ecosystem Ecosystem Telecom, Internet, DTH Omni channel retail/ e-commerce E-grocery Telecom, Internet, DTH FinTech Omni channel retail/ e-commerce The quest to become a SuperApp
- 11. @whitesig ht_ © 2022 WhiteSight 10 UNITED STATES UNITED KINGDOM RUSSIA SINGAPORE PHILIPPINES CHINA Small Business Payments & CRM Small Business Financing P2P Payments Consumer Banking & Investing Small Business Banking BNPL Cross- border payments Personal Banking Business Banking Trading & Investing Rewards, Donations, Travel Personal Loans Consumer Credit Personal Banking Insurance, Business Banking Trading & Investing Telecom, Travel, Entertainme nt BNPL Ride Hailing Comprehensiv e Transportati on Payments & Rewards Food Delivery Services Insurance & Financing Digital Banking SMS-based P2P Payments E-wallet & Remittances Credit & Investing Savings & Insurance Shopping & Entertainme nt Digital Banking E-wallet Investment Platform (Yu'E Bao) Credit Scoring (Sesame Credit) Credit & Insurance Cross Border Payment (ePass) In-App NFT Sales BUSINESS EXPANSION PROGRESSION KOREA Instant Messenger Online Entertainm ent Payments Ride Hailing Internet Bank Entertainm ent & Mass Media Financial Services Lifestyle Services INDIA Paytm Mall Payments Bank Paytm First Games Platform Finance: From unbundling to re- bundling Mobile Recharge Mobile Wallet Lending & Insurance
- 12. @whitesig ht_ © 2022 WhiteSight 11 # * The Cross over * * Acquired by a bank/fintech with a banking license | # Procured Banking License * As of September 2021 | This is not an exhaustive list. Fintersection : The crossover between BNPL and neobanking
- 13. @whitesig ht_ © 2022 WhiteSight 12 ◉ GenZ and Millennials love for UX ◉ GenX and Boomers love for privacy Brand ◉ Cross-industry and cross- country presence ◉ A suite of hardware and software services Scale ◉ Co-creation and distribution platforms ◉ Merchant and consumer- centric propositions Platform Business Model ◉ Lifestyle and location data ◉ Device usage patterns Data ◉ Human Capital ◉ $200+ billion in cash and investments Capital CRA license with FCA ◉ AISP license with FCA ◉ Regulatory license Bank aggregation and data enrichment ◉ Risk models and decision engine ◉ Technology Finance and open banking experts ◉ Analytics, UX, and decision science talent ◉ Talent Loan history data ◉ Open banking data ◉ Data FinTech product partnerships ◉ Tech & BaaS partnerships ◉ Partnerships Fintersection: BigTech & Open Banking
- 14. @whitesig ht_ © 2022 WhiteSight 13 Evolution of FinTech 01 Open Finance
- 15. @whitesig ht_ © 2022 WhiteSight 14 Payments Lendingte ch Investmen t Tech Insurtech Neobankin g Fintech SaaS Cryptocur rency India FinTech : A Traditional Snapshot
- 16. @whitesig ht_ © 2022 WhiteSight 15 Infrastructure Platforms Other Financial Products Paymen ts Lendin g Financial Software India FinTech : An Evolutionary Snapshot
- 17. @whitesig ht_ © 2022 WhiteSight 16 Open Finance Digital Finance Embedded Finance Platform Finance Decentralized Finance Green Finance FinTEC H FINTe ch Global India Global India Future of Fintech : The Next orbital jump on these axes
- 18. @whitesig ht_ © 2022 WhiteSight 17 Trust the intermediary uture of intech OPEN DIGITAL EMBEDDED DECENTRALIZED GREEN PLATFORM Data Ownership Consent-based Data Sharing Product Manufacturing Contextual & Embedded Distribution Branches are key assets Anytime, Anywhere, Any Device Accountable to Shareholders People, Planet, and Profit Build-Own- Operate SuperApp Orchestration Trust the Technology © 2022 WhiteSight. Future of FinTech
- 19. @whitesig ht_ © 2022 WhiteSight 18 Open Finance Open Finance has an interplay with Future of FinTech themes
- 20. @whitesig ht_ © 2022 WhiteSight 19 Open Finance In India 01 The Future of Finance
- 21. @whitesig ht_ © 2022 WhiteSight 20 Account Aggregators NBFC-AA License Holders Technical Service Providers Product design | API providers | Digital lending (OCEN) | Underwriting modelers | Onboarding | SME scorecards | Early Warning monitors | Data Analytics | Data Standards | User Experience Financial Information Providers Banks | NBFC | GSTN | Insurers | Brokers Financial Information Users (Regulated by RBI, SEBI,IRDAI, PFRDA) Banks | Neobanks | NBFC lenders | Digital Lenders | Wealth managers | Insurance firms | Pension fund managers Open Data Aggregators Open Data Providers Open Data Seekers Open Capabilities Providers Open Banking Use cases USE CASES PFM | BNPL | Credit Scoring | Subscription Management | | Account-based payments | Wealth management | Robo Advisory BFM | Cash flow based lending | Channel Finance | Invoice discounting | Automated Accounting | Cash flow based lending Consumer-facing Business-facing Consent management | Data exchange flows | Consumer apps Value Addition Layer Encrypted Plumbing Layer Open Experience Orchestrators Personal Data Holders Industry Infrastructure • DEPA • OCEN • UPI • Aadhaar • CKYC • PCR • GeM Open Finance: The open banking stack in India
- 22. @whitesig ht_ © 2022 WhiteSight 21 2001- 10 2011- 13 2014- 16 2020- 22 2017- 19 • Unified Payments Interface (UPI) Launch • Government e-Marketplace (GeM) Launch • Central KYC Registry launch • e-Sign & DigiLocker introduced • Credit bureaus - CIBIL, Experian, Equifax and High Mark established • Unique Identification Authority of India (UIDAI) established • Aadhaar based e-KYC • Goods and Services Tax Network (GSTN) platform launch • Open Government Data (OGD) Platform launch • Immediate Payment Service (IMPS) Launched • Data Empowerment & Protection Architecture (DEPA)launch • AA Sandboxes go live • Aadhaar on Mobile launch • 1st Operational license for AA issued • Technical Specifications for Account Aggregator (AA) ecosystem released • Regulatory Sandbox launch • Open Credit Enablement Network (OCEN) Launch • Vendor shortlisting for Public Credit Registry (PCR) framework • Launch of e-mandate for recurring payments • Kashi and KYC Setu prototypes • e-RUPI launch • Innovation Hub launch • AA ecosystem goes live • ONDC Platform announced • Report on Non-Personal Data Governance Framework • E-Invoices mandated for Businesses (> INR 50 Cr revenues) • RBI expands scope for Card-on-File Tokenization • Digital Banking Units announced • UK Sinha’s committee report on Loan Service Providers for MSMEs • Data Protection Committee report • The Personal Data Protection Bill introduced • Sahamati, an account aggregator industry body setup • Data localization directive issued • In-Principle Licenses To 5 Account Aggregators • E-Way bills introduced • UIDAI gets statutory status • The Aadhaar Act passed • Account Aggregators(AA) circular issued • Open API policy notified by MeitY • Direct Benefit Transfer launched • PCI-DSS certification mandate issued • Citizenship Act amendment • Pilot project initiated on Multi-purpose National Identity Cards to Indian citizens DIGITAL INFRASTRUCTURE COMPONENTS REGULATORY POLICIES & DIRECTIVES Digital infrastructure & regulatory policy timeline
- 23. @whitesig ht_ © 2022 WhiteSight 22 OPEN ECONOMY Open Data (e-Commerce, Payroll, Utility, Healthcare) Open Business Models (Embedded finance, DeFi) Open Talent (Gig economy, Global Talent) Open Experiences (Hyper-personalized experience, Invisible banking) OPEN FINANCE Open Products (Curated marketplace, Aggregators) Open Processes (Alternate credit scoring, Flow-based lending) Open Innovation (Industry incubators, Sandboxes) Open Assets (Banking as a Service, Compliance as a service) OPEN BANKING Open Accounts Information (AISPs ,Account aggregation) Open Payments (PISPs, Strong customer authentication) Open APIs (Customer consent, Standard interfaces) CLOSED BANKING OLIGOPOLISTIC COMPETITION RADICAL COLLABORATION ENTERPRISE CENTRIC ECOSYSTEM CENTRIC Scope: Data sharing for account information and payments initiation Scope: Data & capabilities sharing across financial sectors including mortgages, pensions, investments, insurance, etc. Scope: Data & capabilities sharing across industries including E-Commerce, Gaming, Payroll, Utility, Healthcare, Telecom, etc. The Open Banking Evolution: From Beginning To Beyond
- 24. @whitesig ht_ © 2022 WhiteSight 23 Follow us on: @whitesight_whitesight