New digital lending architecture: As Indian consumers and business go from being data poor to data rich in next 3 years, a new lending architecture which is digital, based on data footprints and using algorithms can scale up rapidly to provide credit for the underserved. This includes P2P lending. The Electronic Consent layer of the India Stack will leverage this data tsunami.

1. 1
Building For a Billion
Nikhil Kumar, Fellow, iSPIRT Foundation
@nikhilkumarks

2. Platform Model - Reimagining the creation of value
2
Old World - Pipes
● Producer creates value
● Deliver to customer
New World - Platforms
● Interaction creates Value
● Network effects drive Scale
Credit: Platform Scale - Sangeet Paul Choudary

3. Why Platforms Matter?
➔ Economic
leverage has
moved to
platforms
➔ Social Impact

4. “A product is useless without a platform, or more precisely
and accurately, a platform-less product will always be
replaced by an equivalent platform-ized product.”
Source: Steve Yegge’s rant on Google Platforms
$360 billion
$50 billion
$366 billion
Large Platforms…
Evolve from leading digital products
Steve Yegge

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. Why Platforms Matter?
➔ Economic
leverage has
moved to
platforms
➔ Social Impact

7. Platforms
India Stack on JAM
Made-in
India
Services
Technology Platforms are the new leverage point
India has a new soft power to leverage
1st
Innings
2nd
Innings
Natural
Resources
Made-in-India Products
Defense
Aerospace
Electronics
Software Products
3rd
Innings
4th
Innings

8. India Stack

9. 9
Mobile Connections
Aadhaar Enrolments
Unique Bank Accounts
Internet Users
1.21 Bn
1.19 Bn
582M
462M
Social Media Users
375M
India’s
Digital
Push

10. PRESENCE-LESS LAYER Aadhaar Authentication
Unique digital biometric identity with open
access of nearly a Billion users
CONSENT LAYER National Policy on Data Sharing
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
SUBSIDIES
(DBT)
COMMERCE
(GST)
BILLS
(BBPS)
OTHERS
INDIASTACK
TOLLS
(ETC)
JAM Jan Dhan, Aadhaar, Mobile
India Stack

11. 11
Aadhaar Hourglass
Architecture
❏ Identity as a utility, an enabler
❏ Allows innovation on all sides
❏ Amplifies ecosystem players
Biometric
Sensors
Phones Tablets
Attendance
Device
Micro ATM
Healthcare
Apps
SIM
Finance
Apps
UPI
Digital Locker
APB AEPS
DBT
eSign
Aadhaar
Applications / Systems
Devices
● Minimal
● Standardized
● Simple design
● Easy to execute
● Easy to write a law

12. Name
DoB/Age
Gender
Address
Mobile/Email
1234 5678 9012
A Unique
Lifetime
Identity
Aadhaar
Authentication
Aadhaar
eKYC
Are you who
you claim to be?
Paperlessly share
KYC/AML details
Aadhaar
eSign
Digitally Sign Documents

13. 10X number of Jandhan Bank Accounts in 3 years
Starting with 30 Mn accounts in
Sep-2014, India crossed 300 Mn
Jandhan accounts in Sep-2017
Source: UIDAI website, PMJDY Website, as of
Feb-2018
Aadhaar-Seeded Bank Accounts
850 Mn
Unique Bank Account Holders
582 Mn

14. The usage is coming primarily
from Govt, Banks & Telcos
10 BN Aadhaar Authentications In The Last Year
There are now 5x as many
Aadhaar Authentications daily
(64 mn) than Card Transactions
at PoS (12.7 Mn)
Source: UIDAI website
Monthly
Cumulative
Nandan Nilekani, 2018

15. 3.2 Billion eKYCs in 2017
Of the 3.86 Bn total eKYCs ever,
only 0.4 Bn were before Dec ‘16
About a third of the usage is for
Telecom. Other prominent use
cases are for opening of
financial services accounts
Source: UIDAI website
Monthly
Cumulative

16. eSign - Digital signature for a billion
Application Service
Provider (ASP)
1.Online request for
Digital Signature
2. Request for
PoA/PoI Data
4. Online Instant
Digital Signature
Issued
3. PoA/PoI
Through eKYC
eSign Service
Providers (ESP)
UIDAI
(for Aadhaar
eKYC)
Residents
needing to sign a
document
Interoperable, Open API based, multi-provider, digital signing protocol, legally protected under IT Act
16Source: http://cca.gov.in

17. Digital Locker - eliminating fake papers
Open API based
Ecosystem driven
Digitally protected
Source: https://digilocker.gov.in
Multi-provider
Digital Locker
EcosystemIssuer Requestor
Users
Issues
Documents Digitally
Accesses Documents
Online
Approves
Access
No Physical Papers
No Fake Documents
Nandan Nilekani, 2018

18. Registered Mobile Numbers Active Debit Cards Download UPI app & Transact
95+
Banks
600M
Accounts
Onboarding a billion a people at scale to Digital Payments

19. UPI doing more txns than Credit Cards In 18 Months!
Source: RBI website
Right before
demonetization, UPI saw
~100k txn/month.
UPI is at ~170 Mn Txns in
Feb and ~3 Bn $
More transactions on UPI
in 18 months than on
Credit Cards in 18 years!

20. ACQUIRING BANK PARTNERS
CONSUMER MOBILE ECOSYSTEM
UPI
SWITCH
Bank
1
Bank
2
Bank
3
Bank
4
Bank
N Network of 65 Issuer Banks
WIDE MERCHANT ECOSYSTEM
The BHIM UPI Ecosystem

21. A vision for a Good & Simple Tax!
A single tax regime, across
state borders
Input Credit driven by buyer
acceptance
Powered by an API based
platform-Goods & Services
Tax Network (GSTN)
Source: GSTN website
GSTN enrolled 10 Million
businesses, and has
already collected $50 Bn in
taxes in 6 months
Nandan Nilekani, 2018

22. India has a unique digital Infrastructure
A set of serendipitously developed open APIs, built as public good
2 31 64 7
eSign UPI
BHIM
GSTNAadhaar
Auth
FastTag
ETC
8
Bharat
Bill Pay
(BBPS)
5
eKYC Digi-
Locker

23. India will go from data poor to data rich in 3 years
Digital
Identity
Paperless
Process
Commerce
Payment
Social
Machine Learning &
Algorithms
We need to think about how this data wealth
will translate to real wealth for users
Nandan Nilekani, 2018 23

24. Elite & Affluent (37M HHs, 9%)
$18.5k-$37k annual gross HH income
Top 6-10% of highest income HHs
Aspires (66M HHs, 23%)
$7.4k-18.5k annual gross HH income
Middle Class- Looking to trade up & aspire
to upgrade (Disposable Income - 60%)
Next Billion (103M HHs, 500m, 36%)
$3.3k-$7.4k annual gross HH income
New Consumers- HHs have some
disposable income (33%), total spend $1 T
Strugglers (80M HHs, 28%)
<$3.3k annual gross HH income
HHs with the majority of spend on basic
needs such as food, shelter, power & water
India-1 Process Reinvention
India-2 Unlock Bharat
India-3 Reduce Benefits Leakage
Changing India
How India will rise out of poverty over the next 20 years!

25. Unlocking India through India Stack
India Stack
Technology backbone for
presence-less, paperless
and cashless economy
Financial Inclusion
Payments, Lending, Savings
2nd Derivatives
Healthcare Inclusion
Primary Education
Micro-business Expansion
.
.
.
Bringing economic mobility to the country

26. “ Data is empowering when it is in
the hands of the people. We must
invert the data, thus ensuring
freedom and choice.
This is Data Democracy

27. Lack of credit is due to lack of Data
Nandan Nilekani, 2018
Bottleneck of lending is
trust
Knowledge asymmetry
creates usurious money
lenders
Data measures capacity
and intent to pay back a
loan
Ramesh
(Engineer)
Earns Rs 20,000 p.m.
Mohan
(Shopkeeper)
Earns Rs 20,000 p.m.
0 10 10 0
0 1
1 1
0 1 0
0 0 0
1 1 1 1
0 0 0
0
1 00
0
01 1 1 10
0
0

28. India is pioneering Electronic Consent to unlock Data
28
Consent
Collector
Data Producers Data Consumers
Consent
Flow
Data Flow
Consent
Artefact
Lendr
Money Flow

29. Millions of Borrowers
Data Driven
Algorithm Driven
Consented Data Sharing
Enabled by Mobile
Electronic Contracts
Digital Payments
Credit
Marketplaces
Thousands of Lenders
Digital Footprints
Credit at scale can unlock the Indian Economy
Nandan Nilekani, 2018

30. Thank You
@nikhilkumarks