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

2.
2

3.
3

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.
6
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

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

8.
Pradhan Mantri Jan Dhan Yojana
BANKING FOR ALL
8Source: As on 20 Dec 2016, http://pmjdy.gov.in Nandan Nilekani, 2016

9.
1969 1980 1993 2001 2014 2015 2016
Ushering in a new ERA
of DIFFERENTIATED
BANKING
+2149 Years, 14 New Banks
BANK
NATIONALIZATION
New Banks
On Tap
Banking Licenses
+10
+2 +2
Accelerated by regulatory innovation
2nd Aug 2016
Nandan Nilekani, 2016

10.
1 Billion in 5½ Years
Source: Data from http://www.uidai.gov.in 10
950 M
600 M
300 M
100 M
50 M
1093 M
A Ubiquitous Digital
Identity Infrastructure
for a digital desh.
The Aadhaar system can
authenticate 100 M
transactions per day, in
real time!

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.
eSign - eliminating wet signature
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)
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
Residents
needing to sign a
document

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

18.
Validation & Assurance
Virtual Payment Address
Minimal Issuer/Acquirer Cost
Ubiquitous - Bank accounts
Easy Immediate Payments
Timely Notification
Unified Payment Interface
Push & Pull Payments
@Every one with a bank account can send
money to any bank account in India!
Real-time posting
Funds are not locked!
Immediate notifications of
the payment made
Payments can be initiated by payer or payee.
Real-time validation of the
account and balance
No need to disclose account information.
Allows account portability, enhances privacy.
Smartphone replaces card and
PoS machine!!
18

19.
● Open interoperable API
● 1-click 2-FA experience
● 4-party model allowing unbundling of application from bank
● Virtual Payment Addresses hide bank details and allows features like one time
VPA, amount limited VPA, revocation, etc.
● Merchant can use smartphone/featurephone to eliminate PoS
● e-Mandate, e-Cheque and biometric authentication are coming on UPI 2.0
● Markup allowing pluggability for addresses, credentials, and channels
State of the Art architecture
19Source: http://www.npci.org.in

20.
20
● Structured consent artifact and log system
● User controlled data sharing, data flow, and
data retention
● Separation of data and consent flows
● Consistent with current legal frameworks
Electronic consent architecture
Data
Consumers
(Banks,Credits
Providers etc)
CONSENT
Collector
Data
Providers
(Banks,Telco,
Hospitals,etc)
Consent Flow
Digitally signed
consent artifact
Data Flow
Secure data sharing
based on consent

21.
21
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

22.
Source: UIDAI, NPCI, TRAI Website, Conversations with NPCI, eMudhra, Deity officials
600 Mn
Authentications/month
500M unique ids
1.103 Bn
Enrolments In 6 years since launch
340 Mn
eKYC in 3 years
75 Mn unique ids
367 Mn
APB Accounts Linked
1.2 B Transactions worth 4.5 B USD in 3 years
>2.5 Mn
e-Sign in 15 months
>0.8 Mn unique ids
2.9 Mn
Digilocker users &
15 months
4.8 Mn
Uploaded Docs
10M+
UPI VPA in
< 6 Months
259 Mn
Jan Dhan bank accounts
350 Mn
Smartphones
1060 Mn
Phone numbers
Jan Dhan Aadhaar Mobile
22

23.
Source: UIDAI Website, Conversations with NPCI, eMudhra, Deity officials
India Stack Ecosystem
25 ASA 293 AUA
Aadhaar Authentication
23 KSA 216 KUA
Aadhaar eKYC
4 eSign ESPs
1Digital Locker Provider
830Banks (APB)
127Banks (AEPS)
32Banks (UPI)
23

24.
GSTN Platform
Goods & Services Tax
Network (GSTN)
API based platform
GSPs can provide basic and
value-added services to
taxpayers
24
GSTN will process
5 Billioninvoices a month
across 70+ Lakhsbusinesses!
Source: GSTN website

25.
Bharat Bill Payment System
API based platform allowing innovation
on delivery models
Ecosystem incentives aligned for rapid
adoption
Multi-channel (web, mobile, offline, etc) with
multi payment methods (card, cash, UPI, etc)
Unbundling bills, access, payments and
rebundling for any-to-any
Bills can go into Digital Locker which can then
be shared with consent for a use (e.g. loan)
~1 Billion
Bills per month
~250 Billion INR
monthly payments
25Source: Public data and NPCI website

26.
Electronic Toll Collection
Interoperable RFID tag and API specifications
Works across 350+ toll booths on national highways
All vehicle classes, ~60 Million, supported
4 Large banks ready to be issuers and acquirers
Built as an Open API platform. In future, can be used for dynamic pricing, congestion pricing, parking apps, etc.
It can also be used to auto link transport manifests for ease cross border movements.
26Source: NPCI website and discussions with NPCI

27.
27
India will go from data poor to data rich nation in 5 Years ...
Digital
Identity
Paperless
Process
Commerce
Payment
Social
Machine Learning
& Algorithms
… allowing data driven decision making for scale and
inclusion!

28.
Nandan Nilekani, 2015 28
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

29.
Nandan Nilekani, 2015 29
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

30.
The future is here!
Smartphones with integrated
Aadhaar compliant Iris
recognition available for
commercial use!
Source:http://news.samsung.com 30

31.
Aligns market goals with
social goals
No physical presence required
(reduces more costs)
Increases trust - allows a new
business architecture to emerge
Broad based, ubiquitous, inclusive
platform
Cuts Onboarding Costs
Cuts Transaction Costs
Allows Innovation
Why is the India Stack disruptive?
31

32.
Digital footprints - build value for the
consumer & businesses
A Trust networks
A Skills repository
Build credit history
Manage customer workflows with
user consent
Other Innovative Businesses
Reimagine Market Services
Innovative Businesses
Aadhaar - officially valid document
KYC for Regulated Markets
MicroATM Distribution
Mobile Payments
Paperless, Presenceless, Cashless
-lowered costs, market expansion &
financial inclusion.
Regulated Market
Enrolment - Digital id for all
Subsidy reform - deduplication
DBT - Aadhaar as a financial
address
Biometric Attendance
Government
India Stack Adoption Sequence
32

33.
Impact of the India Stack - Large Bank
Retail Customer Onboarding - Reimagining the User journey
with Aadhaar, eKYC, e-Sign and Digital Locker
Source: McKinsey & Company - Financial Services and Digital practices
Turnaround Time down from
6 days to 1 hour
Reduced Drop Offs First Time Right> 99%
Branch Capacity
Freed up by 10%
Back Office
No longer required
33

34.
Impact of the India Stack - Large Asset Manager
Source: McKinsey & Company - Financial Services and Digital practices
Transaction Time down from
4 hours to 2 mins
Reduced Operational cost Improved customer retention
Statement Processing time down from
1 hour to < 1 min
Capacity
Freed up for lead generation
Reimagining Channel Management - Digital Transformation
with Aadhaar eKYC
34

35.
Impact of the India Stack - New Telecom
Source: Conversations
On boarding time Time down from
1 day to 10 mins
Saved Rs 15 / SIM issued Saved 15,000 Trees
Onboarding Rate
50M in < 2 months
Customer Experience
"Walk Out Working"
Customer Onboarding - Digital Transformation
with Aadhaar eKYC
35

36.
© Nandan Nilekani, 2016
India Stack - Taking Off
36
All layers of the stack
have shown
tremendous growth!
Source: UIDAI
5K
13.5M
36

37.
© Nandan Nilekani, 2016
India Stack - Taking Off
37
eKYC has seen
tremendous growth in
recent months!
Source: UIDAI
200K
4M
37

38.
Providing credit without friction
38

39.
No Credible Data
Servicing Cost
Sales Cost
In today’s model, Rajni can never get a loan!
Customers with
the lowest
default rates
have the
highest interest
rates

40.
Need
a loan
Sees
loan
offers
Accepts
best
offer
Receives
loan
Sells
Goods
Repays
loan
Agrees
to share
data
40
7 Key Steps For
Rajni to get a small
intra-day loan

41.
Consent
Architecture
Credit
marketplace
app
Credit
market-
place
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
41
Each step requires
a solution

42.
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
market-
place
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
42
Each solution is
enabled by the
India Stack

43.
43
Cashless &
Paperless
Digital
Footprints
Business
Micro-Credit
Business
Growth
Feeling of
Wellbeing
Virtuous Cycle of
Credit to the
first mile

44.
0 5 : 0 0 mins
Completely digital 5 minute lending process
44

45.
Pilot overview and key participants
LENDERS MARKET PLACES DATA PROVIDERS
● April to June 2016
● Consumer and business loans
● Small ticket size: 10 K to 1 Lakh
● Multiple geographies
45

46.
Alt
Lender
Traditional
lender
Origination & Underwriting
Expected additional
savings of 60%
Risk costs
Limited savings as original
savings from data analytics
Loan Servicing
15% of overall costs
Expected savings of 50%
Collection
Over 10% of overall costs
Expected savings of 30%
Impact of India Stack on new credit system
Costs
New Entrant
on India
Stack
46

47.
47
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

48.
Making investments accessible
48

49.
Investment at scale
49Source: NCAER-CMCR survey, www.openthemagazine.com, discussions with ScripBox
Low Cost, High Volume, Low Ticket Size

50.
Sachet Sized Transactions!
With reduced costs, minimum ticket sizes will come down,
volumes will go up!
50
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

51.
To Increase Market Size 10x or 50x
Cost of Doing Business Must Come Down!
51

52.
Enabling The Skills Marketplace
52

53.
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
53

54.
54
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.

55.
Skilling at scale
55
COMMERCE
TRANSPORT
TOURISM CONSENT ARCHITECTURE
DIGITAL LOCKER
COMMON IDENTITY
SKILLS
EXPERIENCE
Networks and aggregators driving
mass skilling in several domains
India Stack allows skill and
experience to be portable

56.
56
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

57.
57
Thank You