TiE Chennai and CAMS organize FinTech SIG
CAMS, in association with the Chennai Chapter of TiE (The Indian Entrepreneurs), had organized a FinTech SIG event on “Leveraging Billion unique IDs”, on 21st July 2016 at the Crowne Plaza, Chennai, focusing on transformational changes happening to the payment system and transaction processing, empowered by Aadhaar – enabled authentication in combination with innovative solutions from NPCI (National Payment Corporation of India).
Leveraging Aadhaar in its new Avatar
Aadhaar based authentication, in combination with groundbreaking solutions from digital technologies and NPCI, is all set to effect a paradigm shift in the Indian Financial Services space. With Aadhaar reaching 1 billion users, a bouquet of opportunities has opened up for entrepreneurs in the FinTech space, heralding scope for implementation of several innovations.
New opportunities to arise from the Aadhaar – NPCI combination
Addressing the gathering, Keynote speaker Mr. Ramesh Vijayakumar of NPCI elaborated on the strategic modernizations, evolving protocols in the changing technology landscape in the Indian Finance industry.
Describing the Aadhar payment bridge as a linkage between individuals and administrative/financial bodies, viz., the Government of India, banks, etc., Mr. Vijayakumar spoke of the Unified Payment Interface (UPI) as the powerful new initiative where IDs created for individuals are tied to their respective bank accounts, facilitating money transfers via the ID, without flow of conventional details such as IFSC codes, Bank Account Number, etc.
Focusing on the principal theme of the evening, Mr. Vijayakumar spoke of Aadhar based Payment and Settlement system and the benefits of integrating Aadhar with Electronic Benefit Transactions (EBT). He cited of subsidies worth 61,000 Crores of Rupees disbursed through EBT in FY ‘16 alone, which is a mighty leap from ~20 lakh worth disbursal in FY ‘12.
With Aadhar enrollment crossing the 1 billion mark, Aadhar based EBT has been provided as a statutory backing to more than 30 Crore beneficiaries in India. The Government is stepping up measures to ensure the quick implementation of Aadhar based EBT in other social schemes.
Also, Aadhar integrated authentication had paved way to weed out over 1.6 Crore bogus ration cards, and 3.5 Crores of duplicate LPG beneficiaries several thousand Crores worth of savings in Rupees for the government.
Citing the mobile based FinTech Start-up Eko’s tie-up with NPCI, he spoke of of the Aadhar based Remittance system that will allow ~12.5 million customers to send and receive money using Aadhar in a hassle free manner, enabling financial transactions independent of information such as details of bank, IFSC codes, etc., unlike the prevalent norms.
On that note, he recounted that Aadhar based financial transaction systems have already set the tone towards achieving the ultimate aim of NPCI – touching every Indian citizen with its products by the year 2020.
Converting Savers to Investors: A CAMS perspective
Mr. N K Prasad, President and CEO, commended NPCI for its accomplishments in transforming the payment world. Addressing the gathering, he spoke of the role of CAMS as a IT enabled Service Partner to Organizations in the BFSI sector, and its focus on converting Indian savers to investors.
Mr. Prasad spoke of the “regulatory blessings” effected by the governing bodies that have transformed the way Security markets operate, enabling possibilities of presence-less, paper-less transactions and instant investing in Mutual funds.
Mr. Prasad pointed out at the huge scope for growth in terms of financial inclusion, with less than 5 Crores Mutual fund accounts and 35 Crores Insurance accounts in the country, which will further diminish with deduplication. Innovations in the FinTech space should take upon driving the due change and implement a virtuous growth cycle in the Indian financial landscape, he said.
Addressing the entrepreneurs in the gathering, he underlined that having begun as a startup 28 years ago, CAMS is keen on mentoring and assisting FinTech startups; Mr. Prasad emphasized that CAMS would be happy to handhold the startups through knowledge sharing and establishing linkages in the Indian Financial ecosystem, besides support in the form of financial investments.
With the vast experience and deep expertise garnered over 28 years of conducting business with great oversight in a regulation intensive environment, CAMS can bring credible mentoring for rising startups in the Indian FinTech space.
Note: All metrics as specified in the keynote address.
Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance companies, Banks, NBFC’s and Alternate Investment Funds. To know more visit www.camsonline.com