building digital infrastructure for a billion
TRANSCRIPT
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BUILDING DIGITAL INFRASTRUCTURE FOR A BILLION
AADHAAR & INDIA STACK
@pramodkvarma
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1.2 Billion people
<3% pay income tax
70% under $2 / day
400 Million migrants
Photo credit: Hoang Long Ly, 2014 CGAP Photo Contest
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1 Billion mobile connections
350 Million Internet users
200 Million social media users
India is rapidly going digitalSource: various publicly available documents
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$50 Billion every year!
2.5% of GDP
India spends huge amount as direct subsidies ...
Source: various publicly available Govt documents
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20-40% leakage
1% of GDP wasted
... but, leakages are massive
Source: various publicly available Govt documents
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Tackling large societal problems
Pipe vs Platform
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Large scale social problems require
"unbundling of the problem"
and creation of "shared digital infra"
as "public good" on top of which
"innovative solutions" can be "assembled"
to meet diverse contextual needs.
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Internet GPS
OS Smartphone
Maps Payment
Cloud Infrastructure
Disruptive solutionsride on
shared infrastructure
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Aadhaar & India StackA set of digital infrastructure platforms as public good to
allow solutions to be assembled by the ecosystem
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NameDoB/AgeGenderAddress
Mobile/Email
1234 5678 9012
Foundational
Minimal
Unique
Lifetime
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Aadhaar - Identity for a billion
A ubiquitous digital identity infrastructure for all
Source: http://uidai.gov.in
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Source: http://uidai.gov.in 11
950 M
600 M
300 M
100 M
50 M
1085 M
Currently at 1.15 B
At peak, processed ~2 M enrollments a day!
Currently processing ~1 M enrollments & updates a day!
1 Billion in 5½ years
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Aadhaar - online identity services
Enabling online authentication and e-KYC to a billion people
ELIMINATES
PHYSICAL PRESENCE
Are you who you claim to be?
ONLY a yes/no answer
Anytime anywhere
ELIMINATES PAPER BASED
KNOW YOUR CUSTOMER
ONLY done with authentication
No more fake documents
Anytime anywhere
Authentication Electronic KYC
Source: http://uidai.gov.in
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Now at 600+ M a month
25+ M a day
The Aadhaar system can authenticate 100 M transactions per day!
7+ Billion authentications in 6 years
Source: http://uidai.gov.in
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eSign - Digital signature for a billion
Application Service Provider (ASP)
1.Online request for Digital Signature
2. Request for PoA/PoI Data
4. Online Instant Digital Signature
Issued
3. PoA/PoI Through eKYC
eSign Service Providers (ESP)
UIDAI (for Aadhaar
eKYC)
Residents needing to sign a
document
Interoperable, Open API based, multi-provider, digital signing protocol, legally protected under IT Act
14Source: http://cca.gov.in
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Interoperable, Open API based, multi-provider, documents & data exchange framework
Digital Locker Framework
Source: http://dlai.gov.in
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Validation & Assurance
Virtual Payment Address
Minimal Issuer/Acquirer Cost
Ubiquitous - Bank accounts
Easy Immediate Payments
Timely Notification
Unified Payment Interface
Push & Pull Payments
@Every one with a bank account can send money to any bank account in India!
Real-time postingFunds are not locked!
Immediate notifications of the payment made
Payments can be initiated by payer or payee.
Real-time validation of the account and balance
No need to disclose account information.Allows account portability, enhances privacy.
Smartphone replaces card and PoS machine!!
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Inter-operable, multi-provider instant money exchange framework
Source: http://npci.org.in
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● Structured consent artifact and log system
● User controlled data sharing, data flow, and data retention
● Separation of data and consent flows
● Consistent with current legal frameworks
Electronic Consent Architecture
Data Consumers (Banks,Credits Providers etc)
CONSENT Collector
Data Providers(Banks,Telco,Hospitals,etc)
Consent Flow Digitally signed consent artifact
Data FlowSecure data sharing based on consent
Framework to give control of digital footprints back to people
Source: http://dlai.gov.in
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Aadhaar Auth Aadhaar eKYC
eSign Digital Locker
Consent Framework Unified Payment
India Stack isan open infrastructure
built by Indian Government which unbundled
identity, signature, money exchange, document & data exchange allowing apps and solutions to be built easily
Mobile, Internet, GPS, Cloud18
GOVT SUBSIDIES
BANKING, INVESTMENTS
& CREDIT HEALTHSKILLS &
EDUCATIONCOMMERCE
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India is also building other layered platforms
1. Goods & Services Tax Network (GSTN)
2. Bharat Bill Pay System (BBPS)
3. Electronic Toll Collection System (ETC)
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GSTN will process
~5 B invoices a month across
7+ M businesses!
1 B utility bills amounting to
$60+ B a month
BBPS source: http://indiatoday.intoday.in/story/bill-payment-industry-all-set-to-rock-in-services-sector/1/180344.html
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India will go from data poor to data rich nation ...
… and individuals and small businesses will be empowered to use their digital footprints as their "digital asset" to get
access to credit and other services.
Social
Commerce
Payment
Education/ Employment
Healthcare
Digital Platforms
Tax / Business
Consent Framework
Access
Inclusion
Empowerment
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Source: UIDAI, NPCI, TRAI Website, Conversations with NPCI, eMudhra, Deity officials
287 MJan Dhan Bank Accounts
Jan Dhan
1.15 BEnrolments
Aadhaar
350 MSmartphones
Mobile
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7+ BAuthentications
Aadhaar
600 MAuthentications/month
500+ M unique ids
340 MeKYC in 3 years
> 1 M /day
399 MAPB Accounts Linked1.2 B Txns worth 4.5 B USD in 3 years
> 3 Me-Sign in 15 months
4.8 MDigilocker users
1+ BUploaded Docs
10M+UPI Txns in 3 months
~400 M USD transacted a month
1060 MPhone numbers
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Impact of Aadhaar & India Stack
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Large Bank
Retail Customer Onboarding - Reimagining the User journey with Aadhaar, eKYC, e-Sign and Digital Locker
Source: McKinsey & Company - Financial Services and Digital practices
Turnaround Time down from
6 days to 1 hour
Reduced Drop Offs First Time Right> 99%
Branch Capacity
Freed up by 10%Back Office
No longer required23
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Large Asset Manager
Source: McKinsey & Company - Financial Services and Digital practices
Transaction Time down from
4 hours to 2 mins
Reduced Operational cost Improved customer retention
Statement Processing time down from
1 hour to < 1 minCapacity
Freed up for lead generation
Reimagining Channel Management - Digital Transformation with Aadhaar eKYC
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Large Telecom
Source: Conversations
On boarding time Time down from
1 day to 4 mins
Saved Rs 15 / SIM issued Saved 15,000 Trees
Onboarding Rate
50M in < 2 monthsCustomer Experience
"Walk Out Working"
Customer Onboarding - Digital Transformation with Aadhaar eKYC
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Elite (11M HHs, 4%)>$37k annual gross HH incomeWealthiest class in India
Affluent (26M HHs, 9%)$18.5k-$37k annual gross HH incomeTop 6-10% of highest income HHs
Aspires (66M HHs, 23%)$7.4k-18.5k annual gross HH incomeMiddle Class- Looking to trade up & aspire to upgrade (Disposable Income - 60%)
Next Billion (103M HHs, 500m, 36%)$3.3k-$7.4k annual gross HH incomeNew Consumers- HHs have some disposable income (33%), total spend $1 T
Strugglers (80M HHs, 28%)<$3.3k annual gross HH incomeHHs with the majority of spend on basic needs such as food, shelter, power & water
India 1: New Consumption PatternsProcess Reinvention
India 2: Unlock Bharat
India 3: Reduce Benefits Leakage
Changing India - one India at a time!
Inclusion
10X reach
10X effectiveness
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Banking at scale
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Presence-lessPaperless
Data drivenAlgorithms driven
Network model
Mobile Becomes The Bank!
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Investment at Scale
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To increase market size 10x or 50x and bring in mass inclusion, cost of doing business must be brought down!
Source: NCAER-CMCR survey, www.openthemagazine.com, discussions with ScripBox
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Millions of Borrowers
Data DrivenAlgorithm Driven
Consented Data SharingEnabled by Mobile
Electronic ContractsDigital Payments
Credit Marketplaces
Thousands of Lenders
Digital Footprints
Credit at Scale
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Skilling at scale
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COMMERCE
TRANSPORTTOURISM CONSENT ARCHITECTURE
DIGITAL LOCKERCOMMON IDENTITY
SKILLS
EXPERIENCE
Networks and aggregators driving mass skilling in several domains
Portable education, skill, and experience records
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"India has, without question, made the largest technological breakthrough of any nation in living memory. Its technology
advancement has left even Silicon Valley standing. India has built the world's first national digital infrastructure, leaping at least
two generations of financial technologies and has built something at least as important as the railroad was to the UK or the
interstate highways was to the US." - Raoul Pal
https://twitter.com/RaoulGMI/status/835847520920162304
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Primary Education
Health Providers
Logistics
Flow-lendingSavings
Books, TV
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Aadhaar & India Stack provides a
robust foundation to build
innovative solutions to solve
India’s hard problems!
Formalization of Economy
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Thank You!
linkedin.com/in/pramodkvarma
@pramodkvarma