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    India Stack - Social Impact at Scale

    India Stack - Social Impact at Scale

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    @amitranjan
    40 Followers
    7 months ago 560

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    Key Insights

    #Jam#Dpis#Digitalindia#Dpi#Digilocker#Indiastack#Aadhaar#Upi#Digitalinclusion
    1
Towards presence-less, 
paperless, and cashless service 
delivery
    1/40
    2
125 Years of Power Generation
Edison to Now
    2/40
    3
125 Years of Telecom
Graham Bell to Now
    3/40
    Layered 
Innovation
4
Mass 
Flourishing!
    4/40
     
5
TCP / IP, Internet, SMTP 
(Email), GPS
Fundamental Technology 
Innovations, Govt. Funded, Publicly 
Available
Payments Visa/Master, ApplePay Evolution of Payment Systems, 
Security Frameworks, ...
Open APIs, Platforms Google Maps Large Scale Infrastructure, Private 
Companies, 
Smart Phones Android, IOS
Telecommunications & Computing 
Technologies - Hardware 
Innovations 
T E C H S T A C K
Layering of Innovation
Govt. Technology
eCommerce
(Amazon)
Taxi
(Uber)
Hotel
(Airbnb) --- ---
    5/40
    An ‘hourglass’ platform 
architecture
Allows innovation on all sides
● Minimal
● Standardized
● Simple design
● Easy to execute
● Easy to write a law
Applications
6
Devices
UPI AEPS
esign
DBT
APB
Digital 
locker
Other 
apps
Phones
Micro 
ATM
Tablets
FP/Iris 
sensors
Check-in 
Device
    6/40
    J A M - The Foundation of the India Stack
7
    7/40
    Pradhan Mantri Jan Dhan Yojana
BANKING FOR ALL
8 Source: As on 29 Mar 2016, http://pmjdy.gov.in
    8/40
    Accelerated by Regulatory Innovation
Source: News Reports 9
BANK 
NATIONALIZATION New Banks
1969 1980 1993 2001 2014
2015
+14 +6
+10
+2 +2 
49 Years, 14 New Banks +21 in 3 Months
Ushering in a 
new ERA of 
DIFFERENTIATED 
BANKING
    9/40
    Aadhaar: 1 Billion in 5.5 Years
950M
600M
300M
100M
50M
Source: Data from http://www.uidai.gov.in 10
1B
    10/40
    The rise of smartphones
Current sales
about 25M 
smartphones 
per quarter
 Source: Ericsson Mobility Report 11
    11/40
    The Evolution of the India Stack - Built on JAM
12
2010 2011 2012 2013 2014 2015 2016
950 M
1005 M
190 M
Aadhaar
Mobile
JDY
2009
944 M
600 M
100 M
 Source: Ericsson Mobility Report, PMJDY, Aadhaar Web Sites
AEPS 
APB 
Aadhaar 
Authentication
Aadhaar 
eKyc
eSign
UPI 
Consent 
Architecture
Digilocker
1+ B
1+ B
250+ M
    12/40
     Name
 DoB/Age
 Gender
 Address
 Mobile/Email
1234 5678 9012
Unique
Lifetime
13
    13/40
    Aadhaar
Authentication
NO MORE PHYSICAL 
PRESENCE
Are you who you claim to be?
Only a yes/no answer
Anytime anywhere
14
    14/40
    Aadhaar
e-KYC
NO MORE PHOTOCOPIES!
Access ONLY via authentication
No more fake identities
No more paper
15
    15/40
    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
eSign - eliminating wet signature
Source: http://www.cca.gov.in/cca/?q=eSign.html 16
    16/40
    Digital Locker - eliminating fake papers
Open API based
Ecosystem driven
Digitally protected
Source: https://digilocker.gov.in 17
Issuer DigiLocker Requestor
Users
Issues Documents 
Digitally
Accesses Documents 
Online
Approves 
Access
    17/40
    Unified Payment Interface
Source: http://www.npci.org.in 18
Instant
Push & pull
Virtual addresses
Smartphone as card
Smartphone as PoS
1-click 2 FA
    18/40
    Electronic Consent Architecture
Data Consumers
 (Banks,Credits
 Providers etc)
DIGITAL 
LOCKER
19
All "data sharing" to be "via" the 
"owner" with "consent"
"Owner" of the data can 
"electronically request" his/her data 
and store in his/her "digital locker"
"Owner" can "choose" to share the 
data "for a purpose" using "electronic 
consent"
 Data Providers
 (Banks,Telco,
 Hospitals,etc)
    19/40
     
20
PRESENCE-LESS LAYER Aadhaar Authentication
Unique digital biometric identity 
with open access of nearly a Billion 
users
CONSENT LAYER Open Personal Data Store Provides a modern privacy data 
sharing framework
PAPERLESS LAYER
Aadhaar e-KYC,
E-sign, Digital Locker
Rapidly growing base of paperless 
systems with billions of artifacts
CASHLESS LAYER IMPS, AEPS, APB, and UPI
Game changing electronic payment 
systems and transition to cashless 
economy
COMMERCE
(GSTn)
CREDIT
(RBI)
INVESTMENTS
(SEBI) OTHERS
I N D I A S T A C K
SKILLS
JAM Jan Dhan, Aadhaar, Mobile
    20/40
    21
We will go from data poor to data rich nation in 5 Years!
 Digital 
 Identity
 Paperless
 Process
 Commerce
 Payment
 Social
Machine Learning 
& Algorithms
Cashless, Paperless & Presence-less
Service Delivery
    21/40
    Nandan Nilekani, 2015 22
The phone will replace the card as the 
‘What you Have’ authentication factor
WHAT 
YOU 
KNOW
WHAT 
YOU 
HAVE
WHO
YOU
ARE
PIN / Password Card Proof of Identity
    22/40
    Nandan Nilekani, 2015 23
Combining Security with Convenience
Biometric smart phones enable 1-click 2-factor authentication
WHAT 
YOU 
KNOW
WHAT 
YOU 
HAVE
WHO
YOU
ARE
Smart Phone Aadhaar
    23/40
     Nandan Nilekani, 2015
The future is here!
Smartphones with 
integrated Iris 
recognition available!
24 Source:http://mashable.com/2015/05/13/japanese-smartphone-mobile-payments/
    24/40
    Providing credit without friction
25
    25/40
    Why Rajni Cannot Get A Loan?
26
Customers with the lowest default rates 
have the highest interest rates
Sales 
Costs
No 
Credible 
Data
Servicing 
Costs
    26/40
    Need 
a loan
Sees 
loan 
offers
Accepts 
best 
offer 
Receives 
loan 
Sells 
Goods
Repays 
loan 
Agrees 
to share 
data 
27
7 Key Steps For 
Rajni to get a 
small intra-day 
loan
    27/40
    Consent 
Architecture
Credit 
marketplace 
app
Credit 
marketplace
paperless 
contract
Transaction 
a/c & app
Payment 
app
Payment 
app
Need a 
loan
Sees 
loan 
offers
Accepts 
best offer 
Receives 
loan 
Sells 
Goods
Repays 
loan 
Agrees 
to share 
data 
28
Each step 
requires a 
solution
    28/40
    Need a 
loan
Sees 
loan 
offers
Accepts 
best offer 
Receives 
loan 
Sells 
Goods
Repays 
loan 
Agrees to 
share 
data 
Consent 
Architecture
Credit 
marketplace 
app
Credit 
marketplace
paperless 
contract
Transaction 
a/c & app
Payment 
app
Payment 
app
Aadhaar/
eKYC
digi
locker
API for 
loan 
offers
eSign 
Digilocker
UPI
auth
orization 
api
UPI
UPI
29
Each solution is 
enabled by the 
India Stack
    29/40
    30
Cashless &
 Paperless
Digital 
Footprints
Business
Micro-Credit
Business 
Growth
Feeling of
 Wellbeing
Virtuous 
Cycle of 
Credit to the 
first mile
Solution
    30/40
    Making investments accessible
31
    31/40
    32
Source: NCAER-CMCR survey, www.openthemagazine.com, discussions with ScripBox
Onboarding 
Cost
Break Even 
Investment
Target Market 
Size
Rs 1500 Rs 300,000 3M Households
Rs 100 Rs 20,000 34M Households
Rs 10 Rs 2,000 105M Households
    32/40
    Sachet Sized Transactions!
With reduced costs, minimum ticket sizes 
will come down, volumes will go up!
33
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
    33/40
    To Increase Market Size 10x or 50x
Cost of Doing Business Must Come Down!
34
    34/40
    Enabling The Skills Marketplace
35
    35/40
    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 
Vicious 
Cycle
36
    36/40
    37
Training, 
Apprenticeship 
& Certification
Trusted
Credentials
Employment
Credible 
History
Differentiated 
Earnings
Virtuous Cycle for Skills
Guru-Shishya Parampara
Ecosystem of 
institutes/agencies
Aadhaar, Digital 
Locker for portability 
and trust
Market places 
like LinkedIn, 
Babajobs, etc.
    37/40
    Jeevan Pramaan Re-imagined
38
Govt 
Center
Nearby 
Shop
Home 
Service
Any individual or agency
Choice of location
Trust established digitally
Mobile phone with biometrics
No paper work
Using Aadhaar biometric auth, 
eKYC, eSIgn, and UPI
    38/40
    39
India Stack as 
Digital Infrastructure 
Regulatory 
Policy
Market Making Policy 
via Challenge Grants
100s of Experiments
 - Low barriers to entry
 - Level playing field
 - Aligned to national issues
 - Rapid success/failure cycle
A robust 
foundation to 
enable innovative 
solutions to 
India’s hard 
problems
Innovative Solutions to 
India’s Hard Problems
 - Commercially Viable
 - Far reaching consumer impact
 - Reinforces experimentation
    39/40
    40
Thank You
    40/40

    India Stack - Social Impact at Scale

    • 1. 1 Towards presence-less, paperless, and cashless service delivery
    • 2. 2 125 Years of Power Generation Edison to Now
    • 3. 3 125 Years of Telecom Graham Bell to Now
    • 4. Layered Innovation 4 Mass Flourishing!
    • 5. 5 TCP / IP, Internet, SMTP (Email), GPS Fundamental Technology Innovations, Govt. Funded, Publicly Available Payments Visa/Master, ApplePay Evolution of Payment Systems, Security Frameworks, ... Open APIs, Platforms Google Maps Large Scale Infrastructure, Private Companies, Smart Phones Android, IOS Telecommunications & Computing Technologies - Hardware Innovations T E C H S T A C K Layering of Innovation Govt. Technology eCommerce (Amazon) Taxi (Uber) Hotel (Airbnb) --- ---
    • 6. An ‘hourglass’ platform architecture Allows innovation on all sides ● Minimal ● Standardized ● Simple design ● Easy to execute ● Easy to write a law Applications 6 Devices UPI AEPS esign DBT APB Digital locker Other apps Phones Micro ATM Tablets FP/Iris sensors Check-in Device
    • 7. J A M - The Foundation of the India Stack 7
    • 8. Pradhan Mantri Jan Dhan Yojana BANKING FOR ALL 8 Source: As on 29 Mar 2016, http://pmjdy.gov.in
    • 9. Accelerated by Regulatory Innovation Source: News Reports 9 BANK NATIONALIZATION New Banks 1969 1980 1993 2001 2014 2015 +14 +6 +10 +2 +2 49 Years, 14 New Banks +21 in 3 Months Ushering in a new ERA of DIFFERENTIATED BANKING
    • 10. Aadhaar: 1 Billion in 5.5 Years 950M 600M 300M 100M 50M Source: Data from http://www.uidai.gov.in 10 1B
    • 11. The rise of smartphones Current sales about 25M smartphones per quarter Source: Ericsson Mobility Report 11
    • 12. The Evolution of the India Stack - Built on JAM 12 2010 2011 2012 2013 2014 2015 2016 950 M 1005 M 190 M Aadhaar Mobile JDY 2009 944 M 600 M 100 M Source: Ericsson Mobility Report, PMJDY, Aadhaar Web Sites AEPS APB Aadhaar Authentication Aadhaar eKyc eSign UPI Consent Architecture Digilocker 1+ B 1+ B 250+ M
    • 13. Name DoB/Age Gender Address Mobile/Email 1234 5678 9012 Unique Lifetime 13
    • 14. Aadhaar Authentication NO MORE PHYSICAL PRESENCE Are you who you claim to be? Only a yes/no answer Anytime anywhere 14
    • 15. Aadhaar e-KYC NO MORE PHOTOCOPIES! Access ONLY via authentication No more fake identities No more paper 15
    • 16. 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 eSign - eliminating wet signature Source: http://www.cca.gov.in/cca/?q=eSign.html 16
    • 17. Digital Locker - eliminating fake papers Open API based Ecosystem driven Digitally protected Source: https://digilocker.gov.in 17 Issuer DigiLocker Requestor Users Issues Documents Digitally Accesses Documents Online Approves Access
    • 18. Unified Payment Interface Source: http://www.npci.org.in 18 Instant Push & pull Virtual addresses Smartphone as card Smartphone as PoS 1-click 2 FA
    • 19. Electronic Consent Architecture Data Consumers (Banks,Credits Providers etc) DIGITAL LOCKER 19 All "data sharing" to be "via" the "owner" with "consent" "Owner" of the data can "electronically request" his/her data and store in his/her "digital locker" "Owner" can "choose" to share the data "for a purpose" using "electronic consent" Data Providers (Banks,Telco, Hospitals,etc)
    • 20. 20 PRESENCE-LESS LAYER Aadhaar Authentication Unique digital biometric identity with open access of nearly a Billion users CONSENT LAYER Open Personal Data Store Provides a modern privacy data sharing framework PAPERLESS LAYER Aadhaar e-KYC, E-sign, Digital Locker Rapidly growing base of paperless systems with billions of artifacts CASHLESS LAYER IMPS, AEPS, APB, and UPI Game changing electronic payment systems and transition to cashless economy COMMERCE (GSTn) CREDIT (RBI) INVESTMENTS (SEBI) OTHERS I N D I A S T A C K SKILLS JAM Jan Dhan, Aadhaar, Mobile
    • 21. 21 We will go from data poor to data rich nation in 5 Years! Digital Identity Paperless Process Commerce Payment Social Machine Learning & Algorithms Cashless, Paperless & Presence-less Service Delivery
    • 22. Nandan Nilekani, 2015 22 The phone will replace the card as the ‘What you Have’ authentication factor WHAT YOU KNOW WHAT YOU HAVE WHO YOU ARE PIN / Password Card Proof of Identity
    • 23. Nandan Nilekani, 2015 23 Combining Security with Convenience Biometric smart phones enable 1-click 2-factor authentication WHAT YOU KNOW WHAT YOU HAVE WHO YOU ARE Smart Phone Aadhaar
    • 24. Nandan Nilekani, 2015 The future is here! Smartphones with integrated Iris recognition available! 24 Source:http://mashable.com/2015/05/13/japanese-smartphone-mobile-payments/
    • 25. Providing credit without friction 25
    • 26. Why Rajni Cannot Get A Loan? 26 Customers with the lowest default rates have the highest interest rates Sales Costs No Credible Data Servicing Costs
    • 27. Need a loan Sees loan offers Accepts best offer Receives loan Sells Goods Repays loan Agrees to share data 27 7 Key Steps For Rajni to get a small intra-day loan
    • 28. Consent Architecture Credit marketplace app Credit marketplace paperless contract Transaction a/c & app Payment app Payment app Need a loan Sees loan offers Accepts best offer Receives loan Sells Goods Repays loan Agrees to share data 28 Each step requires a solution
    • 29. Need a loan Sees loan offers Accepts best offer Receives loan Sells Goods Repays loan Agrees to share data Consent Architecture Credit marketplace app Credit marketplace paperless contract Transaction a/c & app Payment app Payment app Aadhaar/ eKYC digi locker API for loan offers eSign Digilocker UPI auth orization api UPI UPI 29 Each solution is enabled by the India Stack
    • 30. 30 Cashless & Paperless Digital Footprints Business Micro-Credit Business Growth Feeling of Wellbeing Virtuous Cycle of Credit to the first mile Solution
    • 31. Making investments accessible 31
    • 32. 32 Source: NCAER-CMCR survey, www.openthemagazine.com, discussions with ScripBox Onboarding Cost Break Even Investment Target Market Size Rs 1500 Rs 300,000 3M Households Rs 100 Rs 20,000 34M Households Rs 10 Rs 2,000 105M Households
    • 33. Sachet Sized Transactions! With reduced costs, minimum ticket sizes will come down, volumes will go up! 33 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
    • 34. To Increase Market Size 10x or 50x Cost of Doing Business Must Come Down! 34
    • 35. Enabling The Skills Marketplace 35
    • 36. 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 Vicious Cycle 36
    • 37. 37 Training, Apprenticeship & Certification Trusted Credentials Employment Credible History Differentiated Earnings Virtuous Cycle for Skills Guru-Shishya Parampara Ecosystem of institutes/agencies Aadhaar, Digital Locker for portability and trust Market places like LinkedIn, Babajobs, etc.
    • 38. Jeevan Pramaan Re-imagined 38 Govt Center Nearby Shop Home Service Any individual or agency Choice of location Trust established digitally Mobile phone with biometrics No paper work Using Aadhaar biometric auth, eKYC, eSIgn, and UPI
    • 39. 39 India Stack as Digital Infrastructure Regulatory Policy Market Making Policy via Challenge Grants 100s of Experiments - Low barriers to entry - Level playing field - Aligned to national issues - Rapid success/failure cycle A robust foundation to enable innovative solutions to India’s hard problems Innovative Solutions to India’s Hard Problems - Commercially Viable - Far reaching consumer impact - Reinforces experimentation
    • 40. 40 Thank You


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