India Stack - Social Impact at Scale

1. 1 Towards presence-less, paperless, and cashless service delivery

2. 2 125 Years of Power Generation Edison to Now

3. 3 125 Years of Telecom Graham Bell to Now

4. Layered Innovation 4 Mass Flourishing!

5. 5 TCP / IP, Internet, SMTP (Email), GPS Fundamental Technology Innovations, Govt. Funded, Publicly Available Payments Visa/Master, ApplePay Evolution of Payment Systems, Security Frameworks, ... Open APIs, Platforms Google Maps Large Scale Infrastructure, Private Companies, Smart Phones Android, IOS Telecommunications & Computing Technologies - Hardware Innovations TECHSTACK Layering of Innovation Govt. Technology eCommerce (Amazon) Taxi (Uber) Hotel (Airbnb) ------

6. An ‘hourglass’ platform architecture Allows innovation on all sides ● Minimal ● Standardized ● Simple design ● Easy to execute ● Easy to write a law Applications 6 Devices UPI AEPS esign DBT APB Digital locker Other apps Phones Micro ATM Tablets FP/Iris sensors Check-in Device

7. J A M - The Foundation of the India Stack 7

8. Pradhan Mantri Jan Dhan Yojana BANKING FOR ALL 8Source: As on 29 Mar 2016, http://pmjdy.gov.in

9. Accelerated by Regulatory Innovation Source: News Reports 9 BANK NATIONALIZATION New Banks 1969 1980 1993 2001 2014 2015 +14 +6 +10 +2 +2 +2149 Years, 14 New Banks in 3 Months Ushering in a new ERA of DIFFERENTIATED BANKING

10. Aadhaar: 1 Billion in 5.5 Years 950M 600M 300M 100M 50M Source: Data from http://www.uidai.gov.in 10 1B

11. The rise of smartphones Current sales about 25M smartphones per quarter Source: Ericsson Mobility Report 11

12. The Evolution of the India Stack - Built on JAM 12 2010 2011 2012 2013 2014 2015 2016 950 M 1005 M 190 M Aadhaar Mobile JDY 2009 944 M 600 M 100 M Source: Ericsson Mobility Report, PMJDY, Aadhaar Web Sites AEPS APB Aadhaar Authentication Aadhaar eKyc eSign UPI Consent Architecture Digilocker 1+ B 1+ B 250+ M

13. Name DoB/Age Gender Address Mobile/Email 1234 5678 9012 Unique Lifetime 13

14. Aadhaar Authentication NO MORE PHYSICAL PRESENCE Are you who you claim to be? Only a yes/no answer Anytime anywhere 14

15. Aadhaar e-KYC NO MORE PHOTOCOPIES! Access ONLY via authentication No more fake identities No more paper 15

16. Existing DSC non-scalable due to physical verification, paper process, and use of dongles eSign allows all Aadhaar holders to digitally sign anytime anywhere Open API based, allowing applications to easily integrate eSign - eliminating wet signature 16Source: http://www.cca.gov.in/cca/?q=eSign.html

17. Digital Locker - eliminating fake papers Open API based Ecosystem driven Digitally protected Source: https://digilocker.gov.in 17 DigiLockerIssuer Requestor Users Issues Documents Digitally Accesses Documents Online Approves Access

18. Unified Payment Interface 18Source: http://www.npci.org.in Instant Push & pull Virtual addresses Smartphone as card Smartphone as PoS 1-click 2 FA

19. Electronic Consent Architecture Data Consumers (Banks,Credits Providers etc) DIGITAL LOCKER 19 All "data sharing" to be "via" the "owner" with "consent" "Owner" of the data can "electronically request" his/her data and store in his/her "digital locker" "Owner" can "choose" to share the data "for a purpose" using "electronic consent" Data Providers (Banks,Telco, Hospitals,etc)

20. 20 PRESENCE-LESS LAYER Aadhaar Authentication Unique digital biometric identity with open access of nearly a Billion users CONSENT LAYER Open Personal Data Store Provides a modern privacy data sharing framework PAPERLESS LAYER Aadhaar e-KYC, E-sign, Digital Locker Rapidly growing base of paperless systems with billions of artifacts CASHLESS LAYER IMPS, AEPS, APB, and UPI Game changing electronic payment systems and transition to cashless economy COMMERCE (GSTn) CREDIT (RBI) INVESTMENTS (SEBI) OTHERS INDIASTACK SKILLS JAM Jan Dhan, Aadhaar, Mobile

21. 21 We will go from data poor to data rich nation in 5 Years! Digital Identity Paperless Process Commerce Payment Social Machine Learning & Algorithms Cashless, Paperless & Presence-less Service Delivery

22. Nandan Nilekani, 2015 22 The phone will replace the card as the ‘What you Have’ authentication factor WHAT YOU KNOW WHAT YOU HAVE WHO YOU ARE PIN / Password Card Proof of Identity

23. Nandan Nilekani, 2015 23 Combining Security with Convenience Biometric smart phones enable 1-click 2-factor authentication WHAT YOU KNOW WHAT YOU HAVE WHO YOU ARE Smart Phone Aadhaar

24. Nandan Nilekani, 2015 The future is here! Smartphones with integrated Iris recognition available! 24Source:http://mashable.com/2015/05/13/japanese-smartphone-mobile-payments/

25. Providing credit without friction 25

26. Why Rajni Cannot Get A Loan? 26 Customers with the lowest default rates have the highest interest rates Sales Costs No Credible Data Servicing Costs

27. Need a loan Sees loan offers Accepts best offer Receives loan Sells Goods Repays loan Agrees to share data 27 7 Key Steps For Rajni to get a small intra-day loan

28. Consent Architecture Credit marketplace app Credit marketplace paperless contract Transaction a/c & app Payment app Payment app Need a loan Sees loan offers Accepts best offer Receives loan Sells Goods Repays loan Agrees to share data 28 Each step requires a solution

29. Need a loan Sees loan offers Accepts best offer Receives loan Sells Goods Repays loan Agrees to share data Consent Architecture Credit marketplace app Credit marketplace paperless contract Transaction a/c & app Payment app Payment app Aadhaar/ eKYC digi locker API for loan offers eSign Digilocker UPI auth orization api UPI UPI 29 Each solution is enabled by the India Stack

30. 30 Cashless & Paperless Digital Footprints Business Micro-Credit Business Growth Feeling of Wellbeing Virtuous Cycle of Credit to the first mile Solution

31. Making investments accessible 31

32. 32 Source: NCAER-CMCR survey, www.openthemagazine.com, discussions with ScripBox Onboarding Cost Break Even Investment Target Market Size Rs 1500 Rs 300,000 3M Households Rs 100 Rs 20,000 34M Households Rs 10 Rs 2,000 105M Households

33. Sachet Sized Transactions! With reduced costs, minimum ticket sizes will come down, volumes will go up! 33 TXn Cost Comm. Break Even Ticket Size Rs 50 50 bps Rs 10,000 Rs 5 50 bps Rs 1,000 Rs 2 50 bps Rs 400

34. To Increase Market Size 10x or 50x Cost of Doing Business Must Come Down! 34

35. Enabling The Skills Marketplace 35

36. The Skills Problem Low trust environment Employers do not trust credentials Training is not a differentiator No premium for quality No accumulation of skill credentials Lack of mobility Vicious Cycle 36

37. 37 Training, Apprenticeship & Certification Trusted Credentials Employment Credible History Differentiated Earnings Virtuous Cycle for Skills Guru-Shishya Parampara Ecosystem of institutes/agencies Aadhaar, Digital Locker for portability and trust Market places like LinkedIn, Babajobs, etc.

38. Jeevan Pramaan Re-imagined 38 Govt Center Nearby Shop Home Service Any individual or agency Choice of location Trust established digitally Mobile phone with biometrics No paper work Using Aadhaar biometric auth, eKYC, eSIgn, and UPI

39. 39 India Stack as Digital Infrastructure Regulatory Policy Market Making Policy via Challenge Grants 100s of Experiments - Low barriers to entry - Level playing field - Aligned to national issues - Rapid success/failure cycle A robust foundation to enable innovative solutions to India’s hard problems Innovative Solutions to India’s Hard Problems - Commercially Viable - Far reaching consumer impact - Reinforces experimentation

40. 40 Thank You

India Stack - Social Impact at Scale

Amit Ranjan

India Stack - Social Impact at Scale