PwC s FinTech Insights April 2018

Transcription

1 April 2018

2 From around the web FinTech tales Fostering a FinTech ecosystem Contacts 2 PwC PwC s FinTech Insights

3 From around the web FinTech tales Fostering a FinTech ecosystem Contacts An exclusive look at the latest developments and evolving technologies in the FinTech space Towards a more mature innovation ecosystem The FinTech revolution, although three years old, continues to usher in exciting and innovative solutions using next generation technology. One of the key developments has been active and extensive collaboration between incumbent banks and FinTechs in order to embed innovative solutions into mainstream banking post hackathons and demo day events. Yes Bank has been at the forefront of this trend. Let s look at its innovation journey and how PwC collaborated with the bank to drive various innovation themes. Read more. 3 PwC PwC s FinTech Insights

4 Global insights handpicked by PwC Aadhaar linking to bank accounts mandatory under KYC norms, says RBI The Reserve Bank of India (RBI) has made linking of national biometric ID Aadhaar to bank accounts mandatory as part of its updated Know Your Customer (KYC) guidelines. This, however, will be subject to the final decision of the Supreme Court on making of Aadhaar mandatory, RBI said in a circular. Read more. Fintech firms ask UIDAI to restore e-kyc, authentication access As many as two dozen companies, including PhonePe, PayU India, Zerodha, Razorpay, have filed a petition with the CEO of the Unique Identification Authority of India (UIDAI) after the government run organization revoked access to agencies that provide e-kyc verification and authentication services for fin-tech companies. Read more. 4 PwC PwC s FinTech Insights

5 Global insights handpicked by PwC As India s ATMs run dry, digital payment companies make a killing again It s a bit like November 2016 all over again for Indian digital payment companies. With ATMs in several parts of the country running dry, their platforms are seeing a spike in transactions. On April 19, Bengaluru-based PhonePe said it has seen a 20% increase in the value of peer-to-peer transactions on its app over the past few days. Read more. Blockchain revolutionising the fintech capital of India The blockchain is the invisible technology that is radically transforming the future of the world economy and gaining traction in the capital markets industries. Big corporations are racing to build blockchain platforms. The technology will disrupt the future of digital transformation across industries and businesses. The blockchain is a digitized, distributed, decentralized, and incorruptible public ledger of all digital assets and economic transactions that are recorded in chronological order within a worldwide network called peer-to-peer (P2P) of distributed nodes or computers. Read more. 5 PwC PwC s FinTech Insights

6 Global insights handpicked by PwC RBI asks payments companies to store data in India, may affect foreign players The RBI mandated all payment system operators to store data within the country by September. The development comes at a time when global tech giants like Google and the Facebook-owned WhatsApp have entered the domestic digital payments sector, which has also sparked a debate over data privacy and security. Read more. 6 PwC PwC s FinTech Insights

7 News on recent investments and partnerships in FinTech in India Investments Company Capital Float Company Coverfox Lending Insure-tech Ticket size 22 million USD Ticket size 22 million USD Investor(s) Amazon Inc. Investor(s) IFC and Transamerica Company overview Capital Float is a digital finance company which provides collateral-free unsecured business loans in India via its online platform. Company overview Coverfox lets customers compare and choose the best insurance plan from a wide variety of available options. Source: WWAHSskKEYvlmcNRyXeQ6H/Capital-Float-raises-22-million-equityfunding-from-Amazon.html Source: 7 PwC PwC s FinTech Insights

8 News on recent investments and partnerships in FinTech in India Investments Company True Balance Company Kaleidofin Digital wallet HR tech Ticket size 23 million USD Ticket size 2.8 million USD Investor(s) Line Ventures Corporation, Naver, TS Investment and others Investor(s) Omidyar Network, Blume Ventures and others Company overview True Balance is a balance management utility application for mobile users. It is a one-stop solution for customers to check telecom operator-related messages, offers, mobile data, talktime balance, etc. The app also lets customers recharge their phones. Company overview Kaleidofin propels customers to meet their real-life financial goals by providing them with intuitive and tailored financial solutions. Source: Source: 8 PwC PwC s FinTech Insights

9 News on recent investments and partnerships in FinTech in India Investments Company PhonePe Company Aye Finance Digital wallet Lending Ticket size 77 million USD Ticket size 4.6 million USD Investor(s) Flipkart Investor(s) BlueOrchard Finance Ltd Company overview PhonePe is a mobile payments app that allows users to pay for their utility bills and carry out P2P transfers in a cashless form. Company overview Aye Finance is a new-age finance company which provides business loans to small and micro enterprises in India. Source: Source: 9 PwC PwC s FinTech Insights

10 News on recent investments and partnerships in FinTech in India Partnerships Start-up PhonePe Start-up Amazon Pay Partnered with MMTC-PAMP Partnered with Fresh Menu Payments Payments Purpose To allow customers to purchase gold from the PhonePe application. This partnership will offer customers choice in terms of the grade of gold. Source: Purpose With this partnership, customers would be able to experience a one-click purchase using Amazon Pay and avail various offers, weekend deals, as well as cashbacks. Source: 10 PwC PwC s FinTech Insights

11 News on recent investments and partnerships in FinTech in India Partnerships Start-up MobiKwik Start-up Nuance Partnered with Tamil Nadu State Electricity Board Partnered with Kotak Mahindra Bank Payments Artificial intelligence Purpose Through this partnership, a subscriber would be able to pay utility bills using his/her Mobikwik wallet. Purpose To launch an AI-powered voice bot with Kotak Mahindra Bank s phone banking helpline. The bot is named Keya. Source: newsbuzz/mobikwik-ties-up-with-tamil-nadu-electricity-board-foronline-bill-payments/articleshow/ cms Source: finance/banking/kotak-mahindra-bank-launches-new-ai-poweredvoice-bot/articleshow/ cms 11 PwC PwC s FinTech Insights

12 News on recent investments and partnerships in FinTech in India Partnerships Start-up Amazon Pay Partnered with HDFC Bank Payments Purpose To offer EMI on debit card transactions for HDFC Bank customers. Source: startups/newsbuzz/amazon-pay-to-offer-emi-on-debit-cards/ articleshow/ cms 12 PwC PwC s FinTech Insights

13 PwC collaborates with FinTechs to help augment their growth plans and bring about the next wave of disruption. Access the market Grow Validate Win We leverage our strategic relationships with client s in the BFSI segment to help FinTechs use the right products to reach a wider audience. We provide advisory on human capital, tax, regulatory and compliance requirements. On the funding side, we assist FinTechs in creating business plans, pitches and other mandatory aspects. We thus help create a sustainable business and operating model. We vet capabilities of artificial intelligence/machine learning solutions and provide certification/advice on improvements. This third-party assessment helps boost trust in Fintech products in the market. We co-create and partner with FinTechs to create solutions to meet market needs. The combination of the best capabilities of both PwC and FinTechs helps create winning go-to-market strategies. We will be happy to connect with you to understand your priority areas and discuss ways to engage. 13 PwC PwC s FinTech Insights

14 PwC collaborates with incumbents to help them achieve next level innovation through new-age technologies. Innovation management programme Strategy to leverage FinTechs FinTech assessment Strategic investments We brainstorm with firms on key pain areas, use cases and requirements and map them to a set of prioritised strike zones. We then scan and scout for the best fit market solutions, leveraging our proprietary databases with a focus on next generation technology. We then conduct focused workshops, hackathons and PoC sprints of solutions before embedding them into mainstream banking. For firms seeking improvements in their core platforms or operating model, we assess innovative solutions developed by FinTechs. We then devise ways to embed the solutions and achieve the desired objectives. We conduct due diligence of the business and operating models of FinTechs on behalf of clients. This third-party assessment helps firms build trust in the health of FinTech firms before collaborating with them. We work with financial institutions to understand the objectives of their proposed FinTech investments. We then apply our evaluation matrix to the FinTech pool to arrive at a set of best-fit FinTechs for strategic investments. We will be happy to connect with you to understand your priority areas and discuss ways to engage. 14 PwC PwC s FinTech Insights

15 From around the web FinTech tales Fostering a FinTech ecosystem Contacts Leadership Vivek Belgavi Partner and India FinTech Leader vivek.belgavi@pwc.com Vaidison Krishnamurty Partner, Deals Joydeep K Roy Partner, Insurance and Allied Businesses Zubin Tafti Associate Director, FinTech and Innovation Strategy Zubin.tafti@pwc.com Phone: Harshal Kamdar Partner, Tax and Regulatory Services Vivek Iyer Partner, Risk Assurance Kuntal Sur Partner and Leader Financial Services Risk and Regulation Contributors Richa Gaur Strategy Consultant, FinTech Krunal Kapadiya Senior Consultant, FinTech Gaurav Arora Strategy Consultant, FinTech Aiman Faraz Strategy Consultant, FinTech Nissar Behera Strategy Consultant, FinTech Pratik Patrhabe Strategy Consultant, FinTech Shekhar Lele Strategy Consultant, Payments Namrata Kacholia Strategy Consultant, Payments 15 PwC PwC s FinTech Insights

16 About PwC At PwC, our purpose is to build trust in society and solve important problems. We re a network of firms in 158 countries with more than 2,36,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at In India, PwC has offices in these cities: Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai and Pune. For more information about PwC India s service offerings, visit PwC refers to the PwC International network and/or one or more of its member firms, each of which is a separate, independent and distinct legal entity. Please see for further details PwC. All rights reserved pwc.in Data Classification: DC0 This document does not constitute professional advice. The information in this document has been obtained or derived from sources believed by PricewaterhouseCoopers Private Limited (PwCPL) to be reliable but PwCPL does not represent that this information is accurate or complete. Any opinions or estimates contained in this document represent the judgment of PwCPL at this time and are subject to change without notice. Readers of this publication are advised to seek their own professional advice before taking any course of action or decision, for which they are entirely responsible, based on the contents of this publication. PwCPL neither accepts or assumes any responsibility or liability to any reader of this publication in respect of the information contained within it or for any decisions readers may take or decide not to or fail to take PricewaterhouseCoopers Private Limited. All rights reserved. In this document, PwC refers to PricewaterhouseCoopers Private Limited (a limited liability company in India having Corporate Identity Number or CIN : U74140WB1983PTC036093), which is a member firm of PricewaterhouseCoopers International Limited (PwCIL), each member firm of which is a separate legal entity. AW/May