Download - Business Disruptions in India
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Business Disruptions in India
By- Chitresh JhawarBurhanuddin Ratlamwala
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FLOW OF PRESENTATION
• Meaning Of Business Disruption
• Existing Disrupted Industries
• On Going Business Disruption
• Future Business Disruptions
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BUSINESS DISRUPTIONNEW MARKET
NEW SET OF CUSTOMERS EVENTUALLY DISRUPT
VALUE NETWORK
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DISRUPTIONS WHICH HAVE ALREADY HAPPENED
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Worlds most valuable retailer has no inventory
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Worlds largest movie house owns no cinema
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Worlds largest messaging company has only 55 employees
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World’s largest accommodation provider owns no real estate
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World’s largest taxi company owns no taxi
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BUSINESS DISRUPTION IN BANKING
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MEGA TRENDS TRANSFORMING BANKING INDUSTRY
INDIA GOING DIGITAL EMERGENCE OF NEXTGEN PAYMENT PROVIDERS
FAVOURABLE REGULATORY ENVIORNMENT
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INDIA GOING DIGITAL
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INDIA BECOMING A DIGITAL COUNTRY
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TECHNOLOGY REVOLUTION• Powerful processor• Sustainable memory• High Resolution camera• Barcode scanning• GPS geocoding• NFC technologies• E-commerce• Social networking• Banking apps
Practically most of the things
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MASSIVE GROWTH IN DIGITAL TRANSACTION
• DIGITAL TRANSACTION GROWTH BY 50%
• BRANCH BASED TRANSACTION REDUCED BY 7%
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EMERGENCE OF FINTECH COMPANIES
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EMERGENCE OF NEXTGEN PAYMENT PROVIDERS
BANK LED TELECO LED PREPAID/WALLET
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E-COMM/TECHPAYMENT BANKS
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LENDING INNOVATIONS
SME LENDING
P2P LENDING
SMALL BANKS
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SMALL AND MEDIUM-SIZED ENTERPRISES LENDING
• Short-term loans to purchase inventory, service new orders, or optimize cash cycles
Capital is supplied in the form of bank loans and overdrafts; leasing and hire-purchase arrangements; equity/corporate bond issues.
Quick sign up for quick credit
SMEs contribute 45 % to our GDP as compared to 15 % by the corporate sector.
Eg. Amadeus Advisors Pvt Ltd, Zen Lefin Pvt Ltd
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P2P LENDING• Lending money to individuals or businesses unsecured
personal loan
• Secured loans are sometimes offered through collateral
• Crowd sourcing
• Transaction value of USD 416m* in 2016
• CAGR 2016-2020 of 61.2 %*
• Type- Equity and Reward
• Eg. RangDe.org, Milaap social ventures, Kickstarter, ImpactGuru, Ketto.org * Source- Statista.com
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SMALL BANKING
• Niche banks for small finance
• 100 crore capital
• To serve the rural market
• Example: Disha Microfin and Ujjivan financial
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FAVOURABLE REGULATORY ENVIORNMENT
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FAVOURABLE REGULATORY ENVIORNMENT
• KYC relaxation for small transaction
• Exemption from two factor authentication
• Aadhar making KYC easier
• Unified Payment Interface
• Bharat Bill Payment System
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SHAPING THE CONSUMER BEHAVIOUR
PAPERLESS
CONVIENT
SIMPLE
FASTER
NO QUEUE
BOTTOM OF THE PYRAMID
USER FRIENDLY
CASHLESS
SMOOTH PROCESS
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IMPACT ON THE ECONOMY
• New Opportunities• NEW Market And New
Players• Job creation• Example: PayTM
• Loss of market share• Public Debt• Example: Air India
• Reduction in plastic money
• Infrastructural shift• Airtel can go places
where SBI cannot
• Digitization of existing process
• Paradigm shift in employment
• Reduction in Black money
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PROACTIVE APPROACH TO DEAL WITH DISRUPTION
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COPING WITH DISRUPTION
GOVERNMENT REGULATIONS• Payment Banking• Crowd Funding• Small Banks
Limitations on the services to safeguard interest of existing banks
STRATEGIC PARTNERSHIP• PayTM with other banks• Share Technology by a start up and bank
EXISTING BANKS• HDFC Payzapp• Going Digital
BIG PLAYERS• Acquisition of small players• Stakes in start ups• Example : Nasper- Citrus Pay
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FUTURE DISRUPTIONS
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CLOUD COMPUTING
• Cost saving and usage based billing
• Higher level of data protection, fault
tolerance and disaster recovery
• Allows new product development to move
forward without capital investment
• Reduction in energy consumption and
carbon footprint
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ADVANCED ROBOTICS• Automate current tasks and same
interaction as human
• Virtual workers
• Higher quality with improved
compliance/auditability
• Productivity boost will save up to 40% of the
time
• Processing cost will come down up to 80%
• Fast implementation of new processes
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BIOMETRICS/IRIS AUTHENTICATION
• Aadhaar – Game changer
• NTT Docomo has launched IRIS
recognizing smartphones
• The amount to install biometric
recognition in smartphone to come
down
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FACIAL RECOGNITION & VOICE BASED PAYMENT
• 10% search on Google was made
via voice in 2015
• No PIN or password required
• Allows aged and illiterate to access
and use easily
• Example:
- Alibaba- Facial recognition
- ING Netherlands- Voice
Recognition
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CONTACTLESS PAYMENT
• Use of NFC or RIFD for transactions by
various cards or other devices
• No PIN or signature required resulting in
faster transactions
• MasterCard Canada observed 25% higher
spending by users through contactless cards
• Use of QR code technology by China
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THANK YOU