PwC’s FinTech Insights April 2018 · As many as two dozen companies, including PhonePe, PayU...

PwC’s FinTech InsightsApril 2018

2 PwC PwC’s FinTech Insights

PwC’s FinTech Insights

Our insights From around the web

FinTech tales Fostering a FinTech ecosystem

Contacts


PwC’s FinTech InsightsFrom around the web FinTech tales Fostering a FinTech ecosystemOur insights ContactsContacts

An exclusive look at the latest developments and evolving technologies in the FinTech space

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.

Towards a more mature innovation ecosystem

https://www.pwc.in/consulting/financial-services/fintech/leaders-speak/towards-a-more-mature-innovation-ecosystem.html


PwC’s FinTech InsightsFrom around the web FinTech tales ContactsContactsOur insights Fostering a FinTech ecosystem

Aadhaar linking to bank accounts mandatory under KYC norms, says RBI

Fintech firms ask UIDAI to restore e-KYC, authentication access

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.

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.

Global insights handpicked by PwC

Read more. Read more.

http://www.business-standard.com/article/economy-policy/aadhaar-linking-to-bank-accounts-mandatory-under-kyc-norms-says-rbi-118042100558_1.html

https://timesofindia.indiatimes.com/companies/fintech-firms-petition-to-uidai-ceo-for-restoring-e-kyc-authentication-access/articleshow/63688174.cms




As India’s ATMs run dry, digital payment companies make a killing again

Blockchain revolutionising the fintech capital of India

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.

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.

Read more.

https://scroll.in/article/876302/as-indias-atms-run-dry-digital-payment-companies-make-a-killing-again

https://www.businesstoday.in/opinion/columns/blockchain-revolutionising-the-fintech-capital-of-india/story/274551.html




RBI asks payments companies to store data in India, may affect foreign playersThe 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.

https://timesofindia.indiatimes.com/companies/rbi-gives-six-months-to-payment-system-operators-to-store-all-data/articleshow/63627516.cms



News on recent investments and partnerships in FinTech in India

Investments

Company Capital Float

Sector Lending

Ticket size 22 million USD

Investor(s) Amazon Inc.

Company overviewCapital Float is a digital finance company which provides collateral-free unsecured business loans in India via its online platform.

Source: https://www.livemint.com/Companies/WWAHSskKEYvlmcNRyXeQ6H/Capital-Float-raises-22-million-equity-funding-from-Amazon.html

Company Coverfox

Sector Insure-tech


Investor(s) IFC and Transamerica

Company overviewCoverfox lets customers compare and choose the best insurance plan from a wide variety of available options.

Source: https://yourstory.com/2018/04/coverfox-chai-point-raise-series-c-funding-trucaller-crosses-100-m-daily-active-users-daily-capsule/




Investments

Company True Balance

Sector Digital wallet


Investor(s)Line Ventures Corporation, Naver, TS Investment 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.

Source: http://www.thehindu.com/business/true-balance-gets-23-mn-in-funding/article23620306.ece

Company Kaleidofin

Sector HR tech

Ticket size 2.8 million USD

Investor(s) Omidyar Network, Blume Ventures and others

Company overviewKaleidofin propels customers to meet their real-life financial goals by providing them with intuitive and tailored financial solutions.

Source: https://inc42.com/buzz/omidyar-network-led-2-8-mn-seed-funding-round-in-fintech-startup-kaleidofin/




Company PhonePe

Sector Digital wallet


Investor(s) Flipkart

Company overviewPhonePe is a mobile payments app that allows users to pay for their utility bills and carry out P2P transfers in a cashless form.

Source: http://www.bgr.in/news/flipkart-payments-to-reportedly-invest-rs-518-crore-in-phonepe/

Company Aye Finance

Sector Lending

Ticket size 4.6 million USD

Investor(s) BlueOrchard Finance Ltd

Company overviewAye Finance is a new-age finance company which provides business loans to small and micro enterprises in India.

Source: https://inc42.com/buzz/online-lending-startup-aye-finance-funding-blueorchard/

Investments



Start-up PhonePe

Partnered with MMTC-PAMP

Sector Payments

PurposeTo allow customers to purchase gold from the PhonePe application. This partnership will offer customers choice in terms of the grade of gold.

Source: https://www.medianama.com/2018/04/223-phonepe-gold-mmtc-pamp/

Start-up Amazon Pay

Partnered with Fresh Menu

Sector Payments

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: https://www.news18.com/news/tech/amazon-pay-partners-with-freshmenu-for-digital-payments-1724331.html


Partnerships



Start-up MobiKwik

Partnered with Tamil Nadu State Electricity Board

Sector Payments

PurposeThrough this partnership, a subscriber would be able to pay utility bills using his/her Mobikwik wallet.

Source: https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/mobikwik-ties-up-with-tamil-nadu-electricity-board-for-online-bill-payments/articleshow/63802656.cms

Start-up Nuance

Partnered with Kotak Mahindra Bank

Sector Artificial intelligence

PurposeTo launch an AI-powered voice bot with Kotak Mahindra Bank’s phone banking helpline. The bot is named ‘Keya’.

Source: https://economictimes.indiatimes.com/industry/banking/finance/banking/kotak-mahindra-bank-launches-new-ai-powered-voice-bot/articleshow/63582558.cms


Partnerships



Start-up Amazon Pay

Partnered with HDFC Bank

Sector Payments

PurposeTo offer EMI on debit card transactions for HDFC Bank customers.

Source: https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/amazon-pay-to-offer-emi-on-debit-cards/articleshow/63724013.cms


Partnerships



ValidateGrow

PwC collaborates with FinTechs to help augment their growth plans and bring about the next wave of disruption.

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 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 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 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.

Access the market Win

We will be happy to connect with you to understand your priority areas and discuss ways to engage.



PwC collaborates with incumbents to help them achieve next level innovation through new-age technologies.

FinTech assessment

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.

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.

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 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.

Innovation management programme

Strategy to leverage FinTechs Strategic investments

We will be happy to connect with you to understand your priority areas and discuss ways to engage.



Leadership

Contributors

Vivek BelgaviPartner and India FinTech Leader Email: [email protected]

Vaidison KrishnamurtyPartner, Deals

Joydeep K Roy Partner, Insurance and Allied Businesses

Richa GaurStrategy Consultant, FinTech

Krunal KapadiyaSenior Consultant, FinTech

Gaurav AroraStrategy Consultant, FinTech

Aiman FarazStrategy Consultant, FinTech

Nissar BeheraStrategy Consultant, FinTech

Pratik PatrhabeStrategy Consultant, FinTech

Shekhar LeleStrategy Consultant, Payments

Namrata KacholiaStrategy Consultant, Payments

Zubin TaftiAssociate Director, FinTech and Innovation Strategy Email: [email protected] Phone: +91-9820358735

Harshal Kamdar Partner, Tax and Regulatory Services

Vivek IyerPartner, Risk Assurance

Kuntal Sur Partner and Leader Financial Services – Risk and Regulation

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© 2018 PwC. All rights reserved

About PwC

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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.

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PwC’s FinTech Insights April 2018 · As many as two dozen companies, including PhonePe, PayU...

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