Towards presence-less,

paperless, and cashless service

delivery
1

125 Years of Power Generation

Edison to Now

125 Years of Telecom

Graham Bell to Now

Layered
Innovation

Mass
Flourishing!

TECH STACK

eCommerce
(Amazon)

Taxi
(Uber)

Hotel
(Airbnb)

---

---

Payments

Evolution of Payment Systems,

Security Frameworks, ...

Visa/Master, ApplePay

Smart Phones

Telecommunications & Computing

Technologies - Hardware
Innovations

Android, IOS

Open APIs, Platforms

Large Scale Infrastructure, Private

Companies,

Google Maps

Govt. Technology

Fundamental Technology
Innovations, Govt. Funded, Publicly
Available

TCP / IP, Internet, SMTP

(Email), GPS

Layering of Innovation

Aadhaar Hourglass
Architecture

Applications / Systems
Healthcare
Apps

Finance
Apps

SIM
Digital Locker

UPI

Minimal
Standardized
Simple design
Easy to execute
Easy to write a law

DBT

AEPS

APB
eSign

Aadhaar
Biometric
Sensors

Identity as a utility, an
enabler
Allows innovation on all sides
Amplifies ecosystem players

Phones

Micro ATM

Tablets
Attendance
Device

Devices

J A M - The Foundation of the India Stack

7

Pradhan Mantri Jan Dhan Yojana

BANKING FOR ALL

Source: As on 25 Sep 2016, http://pmjdy.gov.in

Nandan Nilekani, 2016

Accelerated by regulatory innovation

2nd Aug 2016

+21

49 Years, 14 New Banks

1969

1980

1993

2001
+2

BANK
NATIONALIZATION

+10
New Banks

On Tap
Banking Licenses

2014

2015

2016

+2

Ushering in a new ERA

of DIFFERENTIATED
BANKING
Nandan Nilekani, 2016

1 Billion in 5 Years
A Ubiquitous Digital
Identity Infrastructure
for a digital desh.

50 M
100 M

The Aadhaar system can

300 M

100 M

600 M
950 M
1064 M
Source: Data from http://www.uidai.gov.in

authenticate
transactions per day, in
real time!

10

The rise of smartphones

Current sales

25M

about
smartphones
per quarter

Source: Ericsson Mobility Report

11

The Evolution of the India Stack - Built on JAM

Digilocker
AEPS

Aadhaar
eKyc

Consent
Architecture

Aadhaar
Authentication

UPI

APB
eSign

2009

2010

2011

2014

2015

2016

100 M

190 M

250+ M

Aadhaar

600 M

950 M

1+ B

Mobile

944 M

1005 M

1+ B

2012

2013

JDY

Source: Ericsson Mobility Report, PMJDY, Aadhaar Web Sites

12

Name
DoB/Age
Gender
Address
Mobile/Email

1234 5678 9012

Unique
Lifetime
13

Aadhaar
Authentication
NO MORE PHYSICAL
PRESENCE
Are you who you claim to be?
Only a yes/no answer
Anytime anywhere
14

Aadhaar
e-KYC
NO MORE PHOTOCOPIES!
Access ONLY via authentication
No more fake identities
No more paper
15

eSign - eliminating wet signature

Residents
needing to sign a
document

Application Service
Provider (ASP)

eSign Service
Providers (ESP)

UIDAI
(for Aadhaar
eKYC)

1.Online request for

Digital Signature

2. Request for
PoA/PoI Data

4. Online Instant
Digital Signature
Issued

3. PoA/PoI
Through eKYC

Existing DSC non-scalable due to physical verification, paper process, and use of dongles
eSign allows all Aadhaar holders to digitally sign anytime anywhere
Open API based, allowing applications to easily integrate

Digital Locker - eliminating fake papers

Issues
Documents Digitally

Issuer

Accesses Documents
Online

Multi-provider
Digital Locker
Ecosystem

Requestor

Ecosystem driven
Digitally protected

Approves
Access

Users
Source: https://digilocker.gov.in

Open API based

No Physical Papers
No Fake Documents
17

Unified Payment Interface

Push & Pull Payments
Payments can be initiated by payer or payee.

Ubiquitous - Bank accounts

Every one with a bank account can send
money to any bank account in India!

Easy Immediate Payments

Real-time posting
Funds are not locked!

Virtual Payment Address

No need to disclose account information.
Allows account portability, enhances privacy.

Validation & Assurance

Real-time validation of the
account and balance

Timely Notification

Minimal Issuer/Acquirer Cost

Immediate notifications of
the payment made

Smartphone replaces card and

PoS machine!!

18

Electronic consent architecture

Structured consent artifact and log system

User controlled data sharing, data flow, and
data retention

Consent Flow
Digitally signed
consent artifact

Separation of data and consent flows

Consistent with current legal frameworks

CONSENT
MANAGER
Data
Providers

Data
Consumers

(Banks,Telco,
Hospitals,etc)

(Banks,Credits
Providers etc)

Data Flow
Secure data sharing
based on consent

19

Benefits of proposed consent architecture

Allows more data sources to be used
for lending decisions

Stronger underwriting, less

likelihood for loan defaults

Data flows tracked digitally, providing

traceability

Quickly identify fraud, take early

action. Reduced data leakage,
improved security and privacy

Consent tokens are shared, not credentials

Reduced potential for misuse, leading

to improved security and privacy

Real Identity is verified in the process

Reduces potential fraud, and

improves the effectiveness of
credit bureaus.

Purely digital process

Instant monitoring, and reporting,

improved transparency. Regulator can
monitor defaults, risks, fraud

20

INVESTMENTS
(SEBI)

SKILLS

OTHERS

CONSENT LAYER

Provides a modern privacy data

sharing framework

Open Personal Data Store

STACK

CREDIT
(RBI)

CASHLESS LAYER

Game changing electronic payment

systems and transition to cashless
economy

IMPS, AEPS, APB, and UPI

INDIA

COMMERCE
(GSTn)

PAPERLESS LAYER

Rapidly growing base of paperless

systems with billions of artifacts

Aadhaar e-KYC,
E-sign, Digital Locker

PRESENCE-LESS LAYER

Unique digital biometric identity

with open access of nearly a Billion
users

Aadhaar Authentication

JAM

Jan Dhan, Aadhaar, Mobile

21

1.064 Bn

2.98 Bn

Enrolments In 6 years since launch

Authentications of 470M unique ids

150 Mn

339 Mn

eKYC in 3 years
50 Mn unique ids

APB Accounts Linked

>1 Mn
e-Sign in 15 months
>0.8 Mn unique ids

2.5 Mn 3.7 Mn
Digilocker users & Docs
15 months

Source: UIDAI Website, Conversations with NPCI, eMudhra, Deity officials

800K
UPI VPA in
Just over 1 Month
Nandan Nilekani, 2016

22

India Stack Ecosystem

1 Digilocker Provider
126 Banks (AEPS)
794 Banks (APB)
20 Banks (UPI)
Source: UIDAI Website, Conversations with NPCI, eMudhra, Deity officials

3 eSign ESPs
23 KSA 162 KUA
Aadhaar eKYC

25 ASA 262 AUA

Aadhaar Authentication
Nandan Nilekani, 2016

23

India will go from data poor to data rich nation in 5 Years ...

Social

Commerce

Payment

Machine Learning
& Algorithms

Paperless
Process
Digital
Identity

allowing data driven decision making for scale and

inclusion!
24

WHAT
YOU
KNOW

PIN / Password

WHAT
YOU
HAVE

Card

WHO
YOU
ARE

Proof of Identity

The phone will replace the card as the

What you Have authentication factor
Nandan Nilekani, 2015

25

WHAT
YOU
KNOW

WHAT
YOU
HAVE

Smart Phone

WHO
YOU
ARE

Aadhaar

Combining Security with Convenience

Biometric smart phones enable 1-click 2-factor authentication
Nandan Nilekani, 2015

26

The future is here!

Smartphones with integrated

Aadhaar compliant Iris
recognition available for
commercial use!

Source:http://news.samsung.com

27

Why is the India Stack disruptive?

Allows Innovation

Broad based, ubiquitous, inclusive

platform

No physical presence required

(reduces more costs)

Cuts Onboarding Costs

Aligns market goals with

social goals

Cuts Transaction Costs

Increases trust - allows a new

business architecture to emerge
28

Providing credit without friction

29

In todays model, Rajni can never get a loan!

Sales Cost

Servicing Cost

No Credible Data

Customers with
the lowest
default rates
have the
highest interest
rates

Need
a loan
Agrees
to share
data

Repays
loan

Sees
loan
offers

Sells
Goods

Receives
loan

Accepts
best
offer

7 Key Steps For

Rajni to get a small
intra-day loan

31

Credit
marketplace
app
Payment
app
Repays
loan

Payment
app

Consent
Architecture

Need a
loan
Agrees
to share
data

Sees
loan
offers

Sells
Goods

Receives
loan

Transaction
a/c & app

Accepts
best offer

Credit
marketplace

Each step requires

a solution

paperless
contract

32

Aadhaar/
eKYC
digi
locker

Credit
marketplace
app

auth
orization
Consent api

UPI
Need a
loan

Payment
app
Repays
loan

UPI

Payment
app

Architecture
Agrees to
share
data
Sees
loan
offers

Sells
Goods

Receives
loan

Transaction
a/c & app
UPI

Credit
marketplace

Accepts
best offer

API for
loan
offers

Each solution is
enabled by the
India Stack

paperless
contract
eSign
Digilocker
33

Feeling of
Wellbeing

Cashless &
Paperless

Digital

Business
Growth

Footprints

Virtuous Cycle of
Credit to the
first mile

Business
Micro-Credit

34

Credit at scale
Millions of Borrowers

Thousands of Lenders
Credit
Marketplaces

Digital Footprints

Data Driven
Algorithm Driven

Consented Data Sharing

Enabled by Mobile

Electronic Contracts
Digital Payments
35

Making investments accessible

36

Investment at scale

Low Cost, High Volume, Low Ticket Size

Source: NCAER-CMCR survey, www.openthemagazine.com, discussions with ScripBox

37

Sachet Sized Transactions!

With reduced costs, minimum ticket sizes will come down,

volumes will go up!
TXn Cost

Comm.

Break Even Ticket Size

Rs 50

50 bps

Rs 10,000

Rs 5

50 bps

Rs 1,000

Rs 2

50 bps

Rs 400

38

To Increase Market Size 10x or 50x

Cost of Doing Business Must Come Down!

39

Enabling The Skills Marketplace

40

The Skills Problem

Low trust environment

Employers do not trust credentials
Training is not a differentiator
No premium for quality
No accumulation of skill credentials
Lack of mobility
41

Virtuous Cycle for Skills

Training,
Apprenticeship &
Certification

Differentiated
Earnings

Guru-Shishya Parampara
Ecosystem of
institutes/agencies
Market places
like LinkedIn,
Babajobs, etc.

Trusted
Credentials

Credible
History

Employment

Aadhaar, Digital
Locker for portability
and trust
42

Skilling at scale
SKILLS

COMMERCE

EXPERIENCE

TOURISM
TRANSPORT

Networks and aggregators driving

mass skilling in several domains

CONSENT ARCHITECTURE
DIGITAL LOCKER
COMMON IDENTITY

India Stack allows skill and

experience to be portable
43

Innovative Solutions to
Indias Hard Problems
- Commercially Viable
- Far reaching consumer impact
- Reinforces experimentation

A robust
foundation to
enable innovative

100s of Experiments
- Low barriers to entry
- Level playing field
- Aligned to national issues
- Rapid success/failure cycle

solutions to
Indias hard
problems

Market Making Policy

via Challenge Grants

India Stack as
Digital Infrastructure

Regulatory
Policy

44

Thank You
45