Pramod Varma, Chief Architect of Aadhaar & IndiaStack talks about how to build internet scale systems for governance.

1. BUILDING DIGITAL INFRASTRUCTURE FOR A BILLION
AADHAAR & INDIA STACK
@pramodkvarma

2. 22
1.2 Billion people
<3%pay income tax
70%under $2/ day
400 Million migrants
Photo credit: Hoang Long Ly, 2014 CGAP Photo Contest

3. 3
1 Billion mobile connections
350 Million Internet users
200 Million social media users
India is rapidly going digital
Source: various publicly available documents

4. 4
$50 Billion every year!
2.5% of GDP
India spends huge amount as direct subsidies ...
Source: various publicly available Govt documents

5. 5
20-40% leakage
1% of GDP wasted
... but, leakages are massive
Source: various publicly available Govt documents

6. 6
Tackling large societal problems
Pipe vs Platform

7. 7
Large scale social problems require
"unbundling of the problem"
and creation of "shared digital infra"
as "public good" on top of which
"innovative solutions" can be "assembled"
to meet diverse contextual needs.

8. Internet GPS
OS Smartphone
Maps Payment
Cloud Infrastructure
Disruptive solutions
ride on
shared infrastructure
8

9. Aadhaar & India Stack
A set of digital infrastructure platforms as public good to
allow solutions to be assembled by the ecosystem

10. Name
DoB/Age
Gender
Address
Mobile/Email
1234 5678 9012
Foundational
Minimal
Unique
Lifetime
10
Aadhaar - Identity for a billion
A ubiquitous digital identity infrastructure for all
Source: http://uidai.gov.in

11. Source: http://uidai.gov.in 11
950 M
600 M
300 M
100 M
50 M
1085 M
Currently at 1.15 B
At peak, processed ~2 M
enrollments a day!
Currently processing ~1 M
enrollments & updates a day!
1 Billion in 5½ years

12. 12
Aadhaar - online identity services
Enabling online authentication and e-KYC to a billion people
ELIMINATES
PHYSICAL PRESENCE
Are you who you claim to be?
ONLY a yes/no answer
Anytime anywhere
ELIMINATES PAPER BASED
KNOW YOUR CUSTOMER
ONLY done with
authentication
No more fake documents
Anytime anywhere
Authentication Electronic KYC
Source: http://uidai.gov.in

13. 13
Now at
600+ M a month
25+ M a day
The Aadhaar system can
authenticate 100 M
transactions per day!
7+ Billion authentications in 6 years
Source: http://uidai.gov.in

14. 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
14Source: http://cca.gov.in

15. Interoperable, Open API based, multi-provider, documents & data exchange framework
Digital Locker Framework
Source: http://dlai.gov.in

16. 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!!
16
Inter-operable, multi-provider instant money exchange framework
Source: http://npci.org.in

17. 17
● 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
Framework to give control of digital footprints back to people
Source: http://dlai.gov.in

18. Aadhaar Auth Aadhaar eKYC
eSign Digital Locker
Consent Framework Unified Payment
India Stack is
an open infrastructure
built by Indian Government
which unbundled
identity, signature, money
exchange, document & data
exchange allowing apps and
solutions to be built easily
Mobile, Internet, GPS, Cloud
18
GOVT
SUBSIDIES
BANKING,
INVESTMENTS
& CREDIT HEALTH
SKILLS &
EDUCATIONCOMMERCE

19. India is also building other layered platforms
1. Goods & Services Tax Network (GSTN)
2. Bharat Bill Pay System (BBPS)
3. Electronic Toll Collection System (ETC)
19
GSTN will process
~5 B invoices a monthacross
7+ Mbusinesses!
1 Butility bills amounting to
$60+ Ba month
BBPS source: http://indiatoday.intoday.in/story/bill-payment-industry-all-set-to-rock-in-services-sector/1/180344.html

20. 20
India will go from data poor to data rich nation ...
… and individuals and small businesses will be empowered
to use their digital footprints as their "digital asset" to get
access to credit and other services.
Social
Commerce
Payment
Education/
Employment
Healthcare
Digital
Platforms
Tax / Business
ConsentFramework
Access
Inclusion
Empowerment

21. Source: UIDAI, NPCI, TRAI Website, Conversations with NPCI, eMudhra, Deity officials
287 M
Jan Dhan Bank Accounts
Jan Dhan
1.15 B
Enrolments
Aadhaar
350 M
Smartphones
Mobile
21
7+ B
Authentications
Aadhaar
600 M
Authentications/month
500+ M unique ids
340 M
eKYC in 3 years
> 1 M /day
399 M
APB Accounts Linked
1.2 B Txns worth 4.5 B USD in 3 years
> 3 M
e-Sign in 15 months
4.8 M
Digilocker users
1+ B
Uploaded Docs
10M+
UPI Txns in 3 months
~400 M USD
transacted a month
1060 M
Phone numbers

22. Impact of Aadhaar & India Stack

23. 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
23

24. 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
24

25. Large Telecom
Source: Conversations
On boarding time Time down from
1 day to 4 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
25

26. Elite (11M HHs, 4%)
>$37k annual gross HH income
Wealthiest class in India
Affluent (26M 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: New Consumption Patterns
Process Reinvention
India 2: Unlock Bharat
India 3: Reduce Benefits Leakage
Changing India - one India at a time!
Inclusion
10X reach
10X effectiveness

27. Banking at scale
27
Presence-less
Paperless
Data driven
Algorithms driven
Network model
Mobile Becomes The Bank!

28. Investment at Scale
28
To increase market size 10x or 50x and bring in mass inclusion,
cost of doing business must be brought down!
Source: NCAER-CMCR survey, www.openthemagazine.com, discussions with ScripBox

29. 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

30. Skilling at scale
30
COMMERCE
TRANSPORT
TOURISM CONSENT ARCHITECTURE
DIGITAL LOCKER
COMMON IDENTITY
SKILLS
EXPERIENCE
Networks and aggregators driving
mass skilling in several domains
Portable education, skill, and
experience records

31. "India has, without question, made the largest technological
breakthrough of any nation in living memory. Its technology
advancement has left even Silicon Valley standing. India has built
the world's first national digital infrastructure, leaping at least
two generations of financial technologies and has built something
at least as important as the railroad was to the UK or the
interstate highways was to the US." - Raoul Pal
https://twitter.com/RaoulGMI/status/835847520920162304

32. Primary
Education
Health
Providers
Logistics
Flow-lending
Savings
Books,
TV
32
Aadhaar & India Stack provides a
robust foundation to build
innovative solutions to solve
India’s hard problems!
Formalization of Economy

33. 33
Thank You!
linkedin.com/in/pramodkvarma
@pramodkvarma