The APP That Helps you with Informed decisions

1. APP KA PRERNA
HELP YOU REACH YOUR SHORT AND LONG-TERM
FINANCIAL GOALS -DATA-DRIVEN INNOVATION IS
TRANSFORMING THE BANKING SECTOR.

2. Overall Summary
Background - The seismic regulatory events of post the pandemic should change the face
of banking.
Neo Banks will lead to an Open Banking revolution, sparked by new data laws, that will
force banks to up their game. Innovative use of customer financial data and select
partnerships are now key if banks are to survive and prosper and the proposed APP (
Which is a PFM personal finance model will Calculate and monitor a customers finances,
create category wise budgets and monitor transactions to help be planned with their
funds.
The Banking Landscape in India has not yet adopted the PFM model as an consultative
model online. Banks that are used to owning the whole value chain, from current account
to mortgage, via credit card or savings account, want to act now to protect those revenue
streams and be ahead of the pack in developing new one.
Objective : While Large Banks are protecting their Data , Banks have not yet adopted a
structured personal financial model for the clientele at the bottom of the pyramid which is
currently work in progress. Also customers don’t have access to models that are
interoperable and give them a single window to access the Best of Products across
banking accounts, retail loans and investments across different institutional rather than
align all their needs in one bank

3. User Experience – Key Differentiator
User experience is king There is a real risk that traditional banks will become
disintermediated from their customers if they do not focus on user experience.
Banks can no longer take it for granted that consumers will continue to use their
channels if third parties and even other banks are offering easier and more
rewarding access to data-driven services. As more and more sales are driven
through banks’ digital channels, they need to make sure that their product
offerings are being seen at the right time, capitalizing on making sure that these
offerings are relevant, timely and being noticed – hence the need for features like
an activity feed to be that dialogue channel with the customer It is vital to get the
basics right before delighting consumers with additional services that are the icing
on the cake. Neo Banks are achieving traction by getting the basics right. These
new entrants don't necessarily have more advanced technology, but using their
app for basic banking is easy; user experience is driving their success.

4. Key Differentiator : Data Integration
Privacy and Security
In India we still don’t have a regulation that allows customers to authorize third-party
providers to access account and transaction data and authorize payments from their
accounts.
Banks might want to integrate data from social media apps, enrich their transaction feed with
customer reviews for stores or restaurants or show data from their fitness app. All this is
enabled by obtaining the user’s consent and interfacing with the social media platform’s APIs.
A payment service directive should be in place soon and which will is drive ‘Open Banking’,
whereby third-party developers can build applications and services using Open APIs –
publicly available secure application programming interfaces that enable them to access a
customer’s data via the bank’s API.
Increased consumer focus on data protection driving middleware services. There is growing
consumer interest in how organizations are dealing with their data and an increasing
consumer awareness of the value of their personal data to businesses.

5. Options for Banks
1. Keep operations in-house and wait and see: There is no doubt that most banks have been getting
their houses in order ready to be responsive to changing opportunities. Smaller and medium size
banks, not wanting to be at the bleeding edge of change, are still watching and waiting as the
sector transforms and just doing enough to keep on the right side of regulations.
2. Fight for Customer Relationship in partnerships : Banks should compare their customer
interactions with those of Amazon, Facebook and Neo banks such as Monzo, Revolut and N26, and
consider how they can take inspiration from them and think outside of the box. For many banks,
this will mean working with new partners. When asked what was their main strategic objective in
partnering with fintech, the majority of banks (85%) aimed to improve customer relationships,
while 53% said they wanted partnerships to deliver new capabilities ( This is our core – target |
Small Banks , Co-operative Banks |

6. Marketability
1. The APP will ride on Technology and data privacy checks and balances which
will allow Regional , Small Finance and Co-operative banks to reach out to
customers and deepen relationships and make them more profitable
2. This can also help Banks revive Idle Accounts that have stopped transacting.
3. Adopting New Financial Ecosystems - New financial ecosystems continue to
emerge. Activate and Initiate partnership between Banks and Telecom cos to
provide a virtual consumer credit card, that will create an entirely new ‘found
money’ ecosystem based on Open Banking. When the consumer uses the card
to make a payment, they receive a percentage cashback that goes straight
onto their Virtual Pay card. As with previous cashback payment cards, The
Telecom receives cashback from the merchant, which is passed to the card
holder. What is new is that The telecom also earns income from the
‘interchange’, the part of the merchant fee that the card issuer, the bank,
collects from the merchant.

7. Qualifying the Financial Priorities
1. Aggregate All Accounts In One Place – this will include loans, cards, bank accounts, insurance policies, etc. They act as one-stop solutions for
users to access every financial item in one place. – How can one designed Account Aggregation APIs – Most Data would be available in Bank
accounts.
2. Categorization : The simple and sound process of categorizing and analyzing transactions by the personal finance tracking app would help people
in getting insights users to plan their funds. This feature would provides a detailed and targeted analysis of transactions thereby aiding better
service.
3. Real-Time Spending-When creating money management software tracking and analysis of user spending is of key importance- Data extracts
from bank and credit card spends ( How t o enable this) besides tracking other bill payments to track and monitor spends. Segregate spend
patterns into Essential and Discretionary buckets so that this can be tracked against allocated budgets.
Spending Trends
Rental
School and Kids
Medical Care
Utility Bills
Printing and Stationary
Tuitions
Loan – EMI
Professional Fees
Domestic Helps
Grocery
Auto / Transport
Fuel
Personal Care
F&B
Travel
Telecommunication

8. Other Features
1. Enablement of Source of Funds – The APP will give you a snap shot of your Liquidity in
terms of
2. Cash in Hand and Bank
3. Investments
4. Credit Utilization vis vis limits and usance – This will also help to give a snapshot of amount
outstanding , minimum payment due , and interest applicable on the outstanding amount
5. Report – Should be filterable by data category, Merchant, or payee tag. It should help to
compare reports of past months for a clear understanding and spend patterns that are
based on historical data.
6. Track Investments – APP should generate investment reports for users to stay in touch with their
portfolios. Reports like performance, asset allocation, comparison to the market index can be well managed.
7. Bill Payments – All Relevant bill payments should be enabled by the APP so that bills are paid on time and
through a single window rather than logging into different windows . Reminders can be set for timely payments
of the same.

9. Budgeting
1. The APP would help to budget for spends based on category wise spending history.
2. Budgets in the APP can be set in terms of Weekly Spends, forthrightly spends ,
Monthly Spends, Quarterly Spends and Annual - overspends and savings for different
categories would get highlighted category wise week on week for a better
management of source and usance of funds.
3. The APP should calculate the Savings that can be accumulated by better due diligence
and also recommend Safe Investments with benchmark returns.

10. Set a Budget
1. Choose A Category
2. Set a budget amount
Home
$$$ per month
Historic spending Trends on
the category
Spend Trends and Comparison with previous months – Increase
, Decrease

11. Flow Diagram of Recommended APP Features For Discussion
Aggregation
Investment
Accounts
Loans
All available in One
Deck
Categorization Credit Utilization Budgeting Alerts
Create login
One time Set Up
Signup into the
Bank Account to link
relevant accts and
card details
APP can download
all transaction
details
APP can
recognize
categorize all
transactions
Chart reflecting
spending pattern
will now be
visible
APP will auto
generate your credit
score
Credit Utilization ratio
will show amount that is
owed to the CC company
Will showcase the
payment Due Date
Minimum Payment Due
Enable Category Wise
Budgets
Click on create
Budget
link
Category wise Spends
will be available that
will be the base for
assessing and
preparing the Budget
Budgets can be
customized
Progress Report will be
available
Alert generation for
exceeding the Budgets
All Bill payments would
be added to the APP
and reminder alerts to
be generated with
savings
Notification
Email
SMS
Alerts will be generated
for Bank Charges
Non Maintenance of
MAB criteria

12. Other Features
1. Help with Recommendations for Asset Allocation - The APP will have a
backend integration with the Best Investment Options in terms of MFs,
Direct Equity , CODs and Bank Deposits.
2. Similarly the APP would also help to recognize the cheapest Loan
Options for personal Loans , Auto Loans, Education loans amongst others
3. The APP will also recommend the Best and Appropriate Life Insurance
policy based on the profiling ( Profiling metrics to be defined in the APP
with variable inputs in terms of Source of Funds and Liquidity) and
Medical History
4. Category Wise Price Index to help the end user to purchase Cheap and
save more .