An attempt to make sense of what FinTech is all about and its landscape in the country

1. 1st July 2016 An attempt to make sense of what FinTech is all about and its landscape in the country

2. Introduction
Do you know… The term FinTech was originally coined for the back & middle office areas to assist customers of Banks/ FIs
Personal Finance
FinTech, an abbreviation for Financial technology, is the use of technology for disrupting
incumbent financial systems. Financial technology companies are generally start-ups focused on
using technology for solving financial domain specific challenges.
Online Banking
Money Transfer Online Wallet
Lending
Investment

3. FinTech: The purpose it is solving
Author’s Note: The example can be extended for all other offerings under FinTech
Time
Credit Demand
Credit supply by
traditional Banks
Credit supply by
New forms of FIs
NBFCs, MFI, etc.
Credit supply using
FinTech: P2P, etc.
Let’s understand FinTech for Lending and how it is disrupting the existing Financial Systems
There are two forces in play here:
1. Covering unmet Credit Demand:
FinTech helps is facilitating Credit to
those uncovered by traditional financial
system
2. Creative Destruction: With the ability to
facilitate lending cheaply and
transparently, FinTech is expected to
comprehensively disrupt the lending by
traditional financial system

4. Technology in Financial System
Type Offering Segment
Technology
Software Solution
Web/ APP based
Application
Technologies
supporting/
promoting
Traditional
Financial
Systems
Core Banking Solutions
Enterprise(Banks/FIs)
ERP
BPM/ DMS+OCR
Business Intelligence
CRM
Branchless Banking Solutions
TechnologiesdisruptingTraditional
FinancialSystems
Payments
Wallet/ PPIs
Business(SMEs)
-viduals)
Money Transfer/ Remittance
Payment Gateway Solutions
Alternate Currency [Bitcoin]
Lending
Crowdsourcing
SME Lending [B2B]
Consumer Lending [B2C] Retail(Indi-
Alternate Lending [C2C or P2P]
Personal
Finance
Investment/ Trading
Insurance
Money Management
Tax/Retirement planning
Author’s Note: Plotting by Self Deduction. Blockchain not part of the grid; though its possibilities explored in the Linkedin Post.

5. FinTech: The Landscape
Type Offering Segment
Technology
Software Solution
Web/ APP based
Application
Technologies
supporting/
promoting
Traditional
Financial
Systems
Core Banking Solutions
Enterprise(Banks/FIs)
ERP
BPM/ DMS+OCR
Business Intelligence
CRM
Branchless Banking Solutions
TechnologiesdisruptingTraditional
FinancialSystems
Payments
Wallet/ PPIs
Business(SMEs)
-viduals)
Money Transfer/ Remittance
Payment Gateway Solutions
Alternate Currency [Bitcoin]
Lending
Crowdsourcing
SME Lending [B2B]
Consumer Lending [B2C] Retail(Indi-
Alternate Lending [C2C or P2P]
Personal
Finance
Investment/ Trading
Insurance
Money Management
Tax/Retirement planning
Author’s Note: Plotting by Self Deduction. Blockchain not part of the grid; though its possibilities explored in last slide.
FinTech

6. Painting the Indian Landscape
*Source: IDC

7. FinTech: The Indian Landscape
Author’s Note: Plotting by Self Deduction. Blockchain not part of the grid; though its possibilities explored in last slide.

8. Payments: Trend in the last 5 years
-
30
60
90
120
May-16Nov-15May-15Nov-14May-14Nov-13May-13Nov-12May-12
RTGS (Customer Transactions)
-
200
400
600
800
May-16Nov-15May-15Nov-14May-14Nov-13May-13Nov-12May-12
Prepaid Payment Instruments (PPIs)
-
500
1,000
1,500
May-16Nov-15May-15Nov-14May-14Nov-13May-13Nov-12May-12
EFT/ NEFT
-
250
500
750
May-16Nov-15May-15Nov-14May-14Nov-13May-13Nov-12May-12
M-Wallet
-
100
200
300
May-16Nov-15May-15Nov-14May-14Nov-13May-13Nov-12May-12
IIMPS
-
200
400
600
May-16Nov-15May-15Nov-14May-14Nov-13May-13Nov-12May-12
Mobile Banking
Author’s Note: Personally believe volumes to be a better indicator of trend than values. Source: RBI – Payment Indicators
*Volume - All figure in lakhs

9. Payments: Current Players
Technology Examples
Wallet/ PPIs
Money Transfer/ Remittance
Bill Payments
Payment Gateway Solutions
Alternate Currency [Bitcoin]
Image Source: Company websites

10. FinTech: The Indian Landscape
Author’s Note: Plotting by Self Deduction. Blockchain not part of the grid; though its possibilities explored in last slide.

11. Lending: Growth in last 10 years
1,392,216
353,777
-
500,000
1,000,000
1,500,000
May-16May-06
Personal Loans
Source: RBI – Sectoral deployment of Credit in India, Report of Trend and Progress of Banking in India, MFIN Publication
371,46790,239
-
500,000
1,000,000
1,500,000
May-16May-06
SME Loans
212%
194%
6,879,100
1,513,800
0
2,000,000
4,000,000
6,000,000
8,000,000
May-16May-06
Credit Growth of Scheduled Comm. Banks
53,233
3,520
0
10,000
20,000
30,000
40,000
50,000
60,000
May-16May-06
Credit Growth of MFIs (Microfinance)
*Value - All figure in lakhs
254%
1312%

12. Lending: Current Players
Image Source: Company websites
Technology Examples
Crowdsourcing
SME Lending – Credit
SME Lending– Aggregator/
Listing
Consumer Lending –
Aggregator/ Listing
Alternate Lending [C2C or
P2P]

13. FinTech: The Indian Landscape
Author’s Note: Plotting by Self Deduction. Blockchain not part of the grid; though its possibilities explored in last slide.

14. Personal Finance: Current Players
Image Source: Company websites
Technology Examples
Investment/ Trading
Insurance
Money Management
Tax/Retirement planning

15. Thank You