Tech Talk #3

uh okay let's start the session okay uh so good afternoon everyone thank you for joining us today I'm s shna and I'll be your host for this session it is an absolute pleasure to welcome you all to this session where we will explore the dynamic and ever evolving world of financial services and lending today we are honored to have with us Mr Tushar bana a Visionary leader at sassin International a company at the Forefront of redefining the Lend landscape both in India and globally with extensive experience in financial sector Mr bayana has been a driving force behind innovative solutions that Foster Financial inclusion and Empower undeserved communities his expertise spans diverse marage enabling him to offer unique perspectives and draw compelling comparisons between lending practices in in in India and other countries so guys get ready for an engaging discussion that promises to shed light on the challenges and opportunities in the evolving world of Finance so without any further delay please join me in giving a warm welcome to Mr touha bana thanks thanks a thanks for the lovely introduction and I'm honored to be here uh honored to be uh interacting with the young minds here uh what I understand is I think a lot of you are pursuing your undergrad and you are in first to second year of your college degree right yeah great great cool yeah I I really hope to have an interactive session and hopefully both of us benefit out of this after this one hour right so I think let's start let's start with presentation sonali if you can present or somebody can present from your side uh so can you go to this again slide please uh okay this is a changed slide I I don't think you have the updated one um can I send you the link one second sure sir okay I've made you the DAT link just present that uh in the meantime uh let's start uh with some thoughts uh till the time soal is presenting the latest one uh okay so uh let's let's talk about lending okay uh uh how uh it's a question to all of you uh how old do you think blending as a business has been there for how how old is the business any ideas you can ping your answers on the that also okay I'm not getting any responses lending I'm not 12 years is is is too short a Time month 2,000 years ago yes that's a little more like that any other response cool uh none other okay so so lending um if you do a little Google search lending has been there for almost since 3000 BC it's like one of the most primitive businesses ever right um and lending lending by ense is very very simple you give money to someone and you take the money that you take that money back from someone with the cost of capital like you there's some interest that you take on top of it right uh so if it's so simple then why are we even discussing the advancements and all that right so giving out money is not not a problem right you can go out to the streets you can uh you have some bunch of money you can keep on Distributing the money to people that's not lending that's that's sity right uh Lending is when you decide uh and here's what the Crux of the problem Lies when you decide when you need to decide on whom do you want to give to right how do you want to give to and how do you ensure that you get the money back right without incurring losses and the entire technical advancement that has happened in in this in this region in this area is around this right you see and you you'll you'll hear some words now and in the presentation like underwriting uh risk assessment fraud detections etc etc that's just basically where all the all the entities all the industries are trying to understand whom they lend to right and how do they get the money back that's primarily two basic core ideas that I want you guys to take forward right when I uh while I present my ideas over here uh so n did you get my link were you able to open it uh yes sir I'm um maybe can I just start with the world CL then proceed the slides sorry no can we just first proceed with the word then proceed I'm not able to hear you okay uh cool sonali by by the time you presented so basically uh just to give you an idea the kind the topics how the flow will be uh for uh uh for the pro for the presentation today so a I'll be looking at the traditional lending process right was taking a sample lending Journey uh what are the challenges uh that people generally face in that how Tech is trying to solve those problems what are the latest advancements and what are the implicit issues when we do too much technology basically right allf thanks thanks Al let's go to the next slide please yeah uh is it possible to zoom in at it no that's fine uh let's keep it this way uh I I'm not sure with people if you would be able to kind of try and zoom in your screens so this basically talks about uh a uh sample personal loan processing uh Journey that happens uh during the lifetime of a loan processing right uh the if you look at the first block it's basically the borrower goes to a bank he fills up an application form then the bank asks for an ID proof which then the bank uh the borrower furnishes in a simple physical document the bank does an osv OSP is original seen and verified they say I've seen the original this looks great they take a photocopy of it then they look for an address proof then they ask for an account statement post that uh Bank gets certain data okay huh I I understand this person I understand his financials then he proceeds then the bank proceeds to underwrite the loan right underwriting is where the bank decides or the lender decides in general uh how much money can I give to the person depending upon what the ask is at what rate can I give the same to the person and what is the tenure for which I can give it to the person very simple right and then post this uh bank then needs to decide on the connection mechanism also remember I talked in the beginning of the uh beginning of the presentation uh how uh whom do you give to and how you get the money back right so here's the part of how to get the money back Bank decides on the collection mechanism so now once everything is in is in order right uh bank has decided on how do you get the money back then Bank finally disburses the loan which is basically sending out the money to the borrower right uh and then once that money has been sent out then based on the collection mechanism that has been set up Bank goes and try and collect that money back right it could be on a monthly payments uh it could be in a lumpsum payments depending upon the uh lending product as we say or the lending asset class that we see uh that the bank has given the loan for and this this is basically with your emis are or easy monthly installments are right and then once the money is taken back right uh the bank goes and updates it to the credit bureaus credit bureaus are nothing but online platforms which maintain the repayment history of a person who has borrowed anything right so uh yeah so so let's say so you would have heard of cibil or you know Equifax or something like that right so cibil is nothing but it says let's say Tushar has taken a loan from Bank XYZ how has been the payment repayment history of that of thear right so that if I go to some other bank right then that bank ABC would be able to understand H this person uh is a lazy uh payer is an active payer or doesn't pay at all right that gives you a guidance guard rails to their person and then uh and one thing that uh Course once all this is done uh then the bank needs to maintain okay how much money has got back uh what is the life what is the life duration of the tenure of the loan that remains etc etc right which is called the bookkeeping or the books and LS keeping right that's also something uh was done traditionally on on very traditionally was done on your uh you know traditional books and ledgers basically very literal terms bik and or was done on excels in know very recent terms right good uh can we move to the next slide cool so so uh I'll take an example here right uh to just give you all of your some context right so let's say uh a swigy rider wants to start right wants to start his job uh he wants to purchase a vehicle to start so if you look at the earlier mechanism right uh for a vehicle loan let's say this person comes from a very poor background he wants to purchase a loan uh there are chances he would have been rejected on the loan first right because he doesn't have sufficient documents to to give right then there are multiple processes there are multiple checks etc etc etc uh the this entire process would have taken months for that person to get a vle loan and be on be on road to to to start uh earning some income right now with the current scenarios uh this entire process takes minutes not even months not even days so can you press the next button this is the beauty of just go back this is the beauty of the advancement that we have come so far in the lending business right and I in my journey only uh I started my uh experience in lending Journeys at incred around 2017 right uh that was the time when uh this was pre-o Era right that was a time when the technical advancements were not so great we actually had uh uh you know we actually had loan processing timelines of competitors and everyone where we understood that you know it tooks around it took around 1 month one and a half month or two months of lead time also now at postco era we have seen that change happening right now uh uh it takes like two or three months or maximum two or 3 minutes or maximum 5 minutes for the money to be out of the bank uh for the from the lender side right uh let's move to the next slide please cool uh so this is how I mean this is an extension of what I just spoke how traditional lending operated right very in person process someone has to be there fill up the application form Etc uh there's heavy documentation involved paperwork income proofs collateral etc etc etc people get mad while trying to uh meet all the documentation and physical collection mechanism there have been instances people getting calls get give the money back uh some some bad things happening there so this was basically how the traditional lending models used to operate right to the next slide please uh the challenges because of the way uh the way how things used to be and it used to be very Urban centered process uh mostly very Urban centers used to get uh privilege to lending uh semi urbans tier 2 tier 3s rurals they were kind of left from getting access to any credits prolonged timelines you would have guessed as I said months together to to kind of have a loan approved cost inefficiencies so when you are processing all the physical documents you are asking people to get the documents multiple times right your Opex increases your operational expenditures increases right so in that case what what limits the lender is to give short-term loans U or or very small loans where they do not Le a lot right and this is where basically you you kind of leave the rural sector out completely because they are looking for loans which are like 5,000 rupes 10,000 rupees for 2 days 3 days right if you have so much inefficiencies in the system you are not ready to bear the cost to run a 10,000 rupe loan you would want to give loans which are let's say minimum 1 lakh rupees 5 lakh rupees or 50,000 Rupees depending upon the uh uh depending upon the pricing that the user the borrower exes to the then this uh the the entire thing was very fraud PR as well I talked about getting physical documents for ID proof for address proof Etc right what stops me from taking sures Adar putting my uh photo on top of it and saying I'm sures right and this has happened many times and that is why there have been frauds control units set up in almost every organization every lending organization that is there right and then subject to credit credit assessment because let's say I don't know Sur right I know okay uh he's a person he studies right but I don't know his history now or I don't have access to his actual account statements I may not be ready to take a lot of exposure to Sur with exposure I mean I would not give a loan to him at 12% I would give give it to him at 20% because I have to keep my risk I have to keep myself risk covers right so Sur has to pay me a lot more interest because I cannot access M required documents for him in a timely manner in a cost efficient manner right cool uh let's move forward uh so there was a uh s do you still have the link uh with yourself uh yeah I do for questions for question yeah just a second yeah cool uh so this is one question uh this to have uh understanding how people are receiving the things uh how do you think uh and where do you think uh there's a scope of improvement in the entire lending Journey uh from a tech perspective right where do you think Tech would be would act as an enabler in the entire leing Journey right uh so Al can you share that link or maybe you have can you put in yeah sending in a minute yeah I sent [Music] you can you ping it on the messages here for the people n just just a second in fact let me invite suggestions from people here on the Google meet chat only let's let's forget uh to to all the to all the audience uh I've talked about uh typical lending Journey where do you think technology has a role to play a minute help me understand U what what is your idea where technology have played a role in removing the efficiencies that we just talked about in which parts of the journey and how let's give it one minute I would request maybe at least a 10 five or 10 responses from the people here and then we'll move forward perfect automation of ID verification that's a good one any the responses guys just post the response you can be wrong you're not an expert so try to figure out whatever you have heard you can just say what you think there's no if you are wrong you can be corrected but if you don't try that's something will not get us anywhere let's try also requesting everyone to please switch on the cameras because Tushar s is taking his personal time out for explaining us and also please feel free to talk and discuss anything that you feel okay so the question I I'll repeat the question uh so question was very simple how Tech technology can uh help us in handling these challenges or where tech technology can play the role of solving the problem that we are facing in lending yeah improved risk assessment is also very nice guess let's wait for two more responses before I move forward I think tar what has happened students need some uh so they don't want to be wrong and all that so maybe that push is required that's why I'm just saying thing no that's fine that's fine I completely agree in fact the two responses have got so far are just bang on stepping checking for high scores yes that's nice I'll wait for one more response and then I'll move forward so even Tushar he's an expert and he's saying ke these question or these responses are great so try and you will hit the Target so just try and of course tar will explain all these things and uh yeah okay can try to attract people need to start with credit based on FD perfect I like sanj's response to start with credit card based on FD that's a good response I I like that though it's it's not how Tech is solving the problems basically uh what products we are kind of creating uh on top of the problems that have been solved awesome now I'm getting responses documents verification that's nice better customer experience good cool uh we will'll move forward I I I think people are getting the sense of things now great yeah we'll move forward uh yes perfect uh cool so key Technologies driving change right so uh what are the technologies that have come so far that have kind of enabled us to to move from the traditional lending process and move to to a much more automated Tech back back process uh the at the root of these it's a very simple simple uh technology R apis right just cannot cannot uh impress upon it much uh rest API is the API infrastructure has enabled uh data to be exchanged from one party from one source to the other source where uh from the in information requested to the information provider right everything that has happened is on top of it right uh digital payment ecosystems uh RB has done some great work NPC hases done some great work here simplified loan disbursements directly to UPI uh imps neft rtgs uh setting up of repayments amazing work done here right and obviously the key core buzzwords a ml where uh you have enabled automated decision making credit scoring fast uh improved credit scoring and uh fraud detections which uh which is kind of self-learning fraud detections here depending upon uh you know your previous uh historical uh experiences right uh let's move forward okay so this is basically uh you where I talk about what EX exactly and where exactly uh the previous advancements have come into play right this is where uh the entire things comes together let's start from the beginning we we said okay the the person goes to the bank the borrower goes to the bank and fills out an application form right this is where nbfcs uh you know uh digital entities uh third party platforms have done great jobs right uh there are apps uh there are mobile apps there are uh you know there are application forms available on web right so borrower need not visit the bank they can fill up the forms directly from those comfort of their home and we are uh right now there are nbfcs which are requesting these forms for processing loans up to like 50 laks one crores also right uh borrowers credit score is readily available via bureaus right uh so where I was talking about uh where you need to understand what is the paying capability of a person this is where it comes right so you have four uh bureaus identified by RBA where uh any any lender uh keeps on adding historical uh data repayment behavior of the of the person and that helps the other lender quickly reassess quickly assess the capability of the person and what kind of a uh risk uh or what kind of exposure that uh the lender wants to take on that person right borrower identification somebody wrote on the chat also bang on uh so this is where uh the government of India has done some beautiful work right uh just look up for it after this thing you would have heard of jam TR jundan Adar mobile right so adars we have like 138 CR adars right now right uh we have 20 CR bank accounts right so it's it becomes very easy to understand uh what is the identity of that person right and uh if that person that adhar is linked with a bank account for that person then understand the repayment capability of the person also right if the person has a bank account a small or a medium Enterprise as a bank account they would likely be putting all that money over there right and this is I'm talking about let's say uh sub Wala right if that person has a bank account right I would know how much money because uh another amazing work is let's say that Suba has a UPI right I would know and then that UPI whatever money comes from that UPI comes directly to the bank account right so that sub Wala can go to a bank show up his financial statement or bank account statement and say B I have some money you can take you can look at this data and you can give me loan based on the money that I getting right he doesn't need to maintain any books and ledg bik Kata which banks would not trust right uh the other thing is it data GST Data Business documents all the these are available online so you have third party vendors for example per right look just look about it later uh or lentra or other vendors they have established uh API U uh Condes right with these uh information providers which which are Central data warehouses of the bank of the of the of the government and then they we are able to fetch it data GST data uh from these uh Central warehouses data warehouses so let's say if I have a small uh business I would be uh if and I go to a bank to give me a let's say a uh a financing for supply for my uh daily work right I want to purchase some raw material which is called supply chain financing I want to purchase some raw material and I want Bank to help me give money for that I can the bank can quickly go to the GST portal and say okay H tar has a uh has a company and they are really doing good I can I can afford to give some money lend out some money to Tar uh because I know in a month or two months time he would be able to pay it back right uh let's go to the next slide no previous one please another U another Master Stroke by RBI which I would would say is uh uh so RBA recently uh uh rolled out of an act called dpdp act which is basically data protection act which is based on data framework I'm I'm putting out these key terms so that you know once you guys have the slide just go and look out for these F this will be very helpful for you if you are looking into jobs into fintech industry L on right so a a a a byproduct of DEA framework is account aggregator what does account aggregator do right so when I talked about that the bank wants uh account statement for the customer to analyze whether he'll be able to pay or not right so what account aggregator does uh if let's say I let's say sures has a bank account in yes bank right uh and he goes to HDFC and asks for a loan right sdfc will say boss you bring your bank account statement to me uh now either survey who let's say residing in Bangalore has Bank bank account let's say in Mumbai previous time previous let's say let's talk about five years back right he would go to fly to Mumbai or get get his bank account statement or go to the nearest s bank BR go get the bank statement get it verified etc etc and then bank will also take the bank statement and say okay boss uh I need to go and then they'll send their own risk agent to say okay whether this bank statement is actually true or not right multiple processes and very cost in effective so what RBI has done is they have built an entity called account aggregator this account aggregator doeses all this framework does all this thing so yes Bank HDFC will send a request to yes Bank by an API get an information back consume it and underwrite the loan on it right what DEA framework brings in this DEA framework brings consent right consent which is timed right so if hdf is asking for bank account statement they will send a message to Sur where service has to provide a consent that this account statement will only and only be used by used by sdfc for only and only underwriting the loan that he's requesting for for only 15 days that's the beauty of the DEA framework and the account aggregators that have been brought in right so you are minimizing the entire risk of fraudulent practices or duplicate bank statements here right then is underwriting models so this basically is a service now right so let's say I am a small lender I want to set up a shop I not aware of what kind of basic default check should I do right I can quickly go to underwriting model they are Avail to an entity who's providing underwriting model to me I can tweak it based on uh my understanding on what parameters I want to run and I can put that in a business rule engine that I decide so when Sur will come to me I'll run that model quickly and say okay uh this profile looks good and this is the exposure I can have for this person right the next three things Notch framework UPI mandates and singal financial leads right this is where you uh enable the lenders to get the money back okay uh because till now what we have talked about is we want to risk assess the person and then we want to understand how do we underwrite that person now how do we get the money back right so here uh the current evolution of uh by npci is a NCH presentation where uh you sign an e mandate and there also you have we have moved away from physical notches right around preo era we used to have physical notches where uh let's say uh I'll take abhishek's name now uh abishek wanted to uh get a loan right and uh he would then let's say two wheer loan he would go to uh uh he would go to the uh dealer and uh once the loan has been financed right it has been sanctioned he would go back again and say uh and and somebody would fill out a form with him say I I authorize uh let's say yes Bank to deduct 10,000 rupees per month as an Emi from my account that was physical Notch now he doesn't even want to do that he doesn't need to do that also he'll get a link on his mobile saying okay set up a e mandate where he'll just authorize which will could be based on Adar or could be based on OTP and he'll authorize yesbank to set up that instrument repayment instrument and what this repayment instrument does uh it goes on that desired date it goes automatically deducts the money from abhishek's account and gives it back to yesbank account right and if there it does not do that if the uh money is not present then obviously there are repercussion but then that's between abishek and yesbank to handle those right similarly UPI mandates right UPI mandates uh they provide that ease from your Google pay app right you don't even need to open up your uh bank account or do any such sort of thing uh for example uh Netflix right or goog or any other subscription service or hot Star right they are actually moving towards UB mandates when you subscribe for Netflix let's say for 499 C act they send a UPI mandate request to your Google pay where you can just approve and automatically money gets directed from there the last one is very interesting where you set a financial leans right so let's say U I am a restaurant owner with zomato register with zomato I go to zomato and say boss I need a loan so matter will say okay I have a banking partner yes Bank uh you go and take a loan from from them I and I give all the data uh whatever I have for uh basically zato will give all my data whatever transactions I have done with zato to the bank and the bank will say okay this person is doing so much money so much amount of business uh on zato he would be a good person right but then how do I get my money back right because uh I he may fudge his data or whatever right even npci Nash your UPI mandate he may take the money from his bank account and put it in some other bank account that instrument may fail so now we have a system of financial lean where uh zato will get it signed by me okay whatever money you will earn in a month or in a week or a daily basis the first right would be with the lender let's say I earn th000 rupees and my monthly installment comes out to be uh uh 500 rupees right so then Bank will have the first right on that th000 so that, money will go to bank's account or an escro account that we call it will deduct 500 rupees from it and then send 500 rupes back to me right so I'm meeting my liabilities before I get that money back so that's basically called a financial name right cool I'll take a stop here pause here if you guys have any questions let's answer those before we move to the next part of the presentation guys if you have any questions please kindly unmute yourself and ask questions to sir and also make it little bit interactive okay let's wait for second uh open you can better Open salary account in a bank and request for a loan uh yes so this we are not talking about just salaried people I'm talking about businesses also right uh and I may not want to take the loan from the very same bank because that bank's products may not necessarily align with my requirements right let's say I have a bank account with yes bank and they give me a pricing of 10.95% but I want it at 10.5% I would go to HDFC I'm in my rights I I'm very well allowed to do so but then my since my account is in yesbank HDFC has to get money from yesbank right cool uh we'll move forward then with no other questions so yeah cool so I talked about the advancements I talked about how the lending uh business processes of the uh pre history used to look like right let's talk about what models or product lines have actually uh come up with these advancements one thing is lending as a service I briefly touched upon it when I gave so matter example I'll give another example here let's say for Flipkart right I for Flipkart let's say I uh let's say again I take sures I'm giving you a lot of things Sur today so Sur uh sures has is a reseller with flip cart and he's doing good right but he wants to expand his business which will uh inherently uh help flip card also to expand their uh gross monthly value right now uh service wants a loan he approaches flipcart and flip cart says okay I have uh you fill in these details I have four or five banks or lenders who have partnered with right you fill up these details I'll send your data to those Banks and they'll give you the pricing and you take up whatever pricing is suitable for you right there are platforms who are which are enabling this surface right so uh flip cart need not uh spend any amount of money in having this platform enabled right there are platforms which are providing lending as service which have Plug and Play application forms designed for Flipkart they just put a button right on on flip cart's Journey have surveys click on it have surveys fill up the details send that data with API linkages to multiple Banks right where Flipkart basically can say if let's say lending that that platform has 10 Banks enabled flip card can say I want to do only bus business only with these two Banks right so it will go to those two Banks their business rule engines will work they will uh give a yes or a no with a pricing that sures I want to give 10.5 I want to give 11.5 that comes back to Sur Via SMS right and when service agrees to it uh it goes back to them or maybe to some other collection partner there are third parties which specialize in setting up the NCH mandates which we talked about which directly interact with npci because interacting with npci setting up that linkage is also business or is a big huge processor itself so they interact with the third party partner have Sur Nat setup take that ncha unique ID and give it back to the bank and to flip cart person right now the loan gets dispersed and once survey starts payment to the bank right that uh Bank uh keeps on sending uh regular information to Flipkart saying K sures is doing good he sending me money uh and once let's say surve stops sending money Flipkart can take an action on it right so this is the beauty of lending ER service by eming all that we talked before right second that I want to pick up is coal lending and these are just I I have picked up three or four examples that I found would be helpful to you guys but there are other models and product lines also which are being developed as we speak coal lending is a collaborative business process so let's say uh I am uh let's say I a bank let's say let's say let's take an example of uh uh HDFC per se or uh yes Bank per se uh so these banks have money right they have crores of money thousands of crores of money but uh why nbfcs came into picture new non-banking Financial companies why they came into picture because these banks have friction in going forward and meeting to the clients they they don't have that muscle power they don't want to spend that much money into getting more people on board it who want to take loans so these nbfcs does that for them because the nbfc goes talks to let's say abishek uh on boards him right and then says okay great uh I I will give you a loan and then give let's say abhishek's ask is five lakh rupees he'll give them five lakh rupees and then goes to the bank to yes bank and say okay boss uh abishek has taken a 5 lakh rupe loan for me would you want to finance it right so Bank says perfect I would want to finance 4 lakh rupees of it so in turn because banks cost of capital cost of capital is the amount of money you have to spend to get that money right so banks cost of capital is low because they don't need to necessarily advertise a lot to themselves people by themselves come and give money so that's why bank's cost of capital is low whereas nbfc needs to go to a bank pay a premium let's say 14% or 133% to get that same amount of money right so in that turn uh abishek will get a blended rate wherein let's say Bank cost of capital is 8% uh and in bfc's cost of capital is 11% so abishek will get it at 9% right so all three parties are happy nbfc uh is is uh getting some money uh uh is getting uh some installments uh at a at a lower cost uh bank is able to give that money to to abishek and abishek is getting a blended rate which is lower than an NBC and this basically has been uh is prioritized by Bank of by the government of India also where they have RBI has given some priority sector lending so the banks have to actually meet some Targets on a monthly basis right we'll go next cool uh we'll talk about loan against Securities somebody mentioned they got a credit card based on um some on FD right so this is similar to that so this basically in uh this basically enables A lender to give money based on some assets that somebody holds let's say sures has a uh uh has an insurance policy of 15 lakh rupees which is due to mature in sometime soon and he'll get that money right uh or let's say he he's a investor in stock market and he has built up cres of wealth there right S I think you're happy with cods so in that case uh now serves can go to Bajaj Bajaj finance and say okay boss I have this much amount of money I need some loan I have this much amount of wealth I need some loan J will say okay you give me your portfolio you show me your portfolio and you select which loan you want to take security against loan against he'll pick up One stock and say this will give me maximum benefit you you you kind of give me lean on that so now how te Tech will play a role in this that Bajaj will be able to talk to the central agency which basically cams or K right and get that data for surveys say validate that surveys actually has that loan this is the amount of that loan and then put a lean on that so let's say sures if he defaults then they they they can go and sell off that stock recover that money and whatever remains given to Serv right so that's a new model that's basically it's it's it's an age on model but again uh how Tech is playing a role in that is is very very evident now right uh another thing is onc so onc it's it's it's a beautiful thing that RBI has Indian government has come out with uh onc is open network for digital Commerce right which basically enables everyone this there a uh huge term in in uh lending industry is a democratization right so it enables democratization for e-commerce so basically anyone anyone in this group can open a online store with on this platform with very much ease right uh they can set up a online shop they can receive orders and once they receive orders uh that comes to them and they can deliver the product they don't need to set up a proper e-commerce platform or on website or anything like that none of that nonsense and then a lot of um uh a lot of uh uh customer apps out there can subscribe to onc and once they subscribe to onc uh anybody using that app can have the full flavor of all the e-commerce stores present on the NOC that's a very basic picture right now how it is helping lending so now let's say again abishek has has set up a stop shop in onc right and he wants a financing working finance loan right so now that working finance loan uh A lender can also uh embed themselves on the onc platform and they would be able to access uh the the uh uh the transactions that abhishek's business does and uh get that entire uh idea and underwrite based on those transaction history right cool uh I will take a pause here for any questions before I move forward I think uh there just we are towards the end of the presentation now guys please shoot up your questions if you have any and also please keep your cameras on and make it a little bit Interactive cool I'm guessing no questions till now uh we'll move forward to the next slide then cool so these are some words words that I would want to leave with all of you uh search on these uh fascinating work being done by RBI uh in kind of again democratizing the entire loan Journey from kyc enablement to understanding of business to ensuring that anyone any new lender can set up a shop and with very ease get all the data points and uh have all the processes done one thing that I would really want to emphasize on over here is cbdc very I'll spend one minute here on cbdc cbdc is RBS digital currency right uh it's basically uh based on blockchain and the uh the idea behind C cbdc is great right so what cbdc in envisions to do so let's say uh I am a villager uh Village shop owner right I uh want to take a I'm a farmer I want to uh take take a loan for expanding my farming right want to purchase some seeds some pesticides Etc now uh a a small Bank can give me a loan a rural Bank can give me a loan but how would they know okay I would spend that in seeds or pesticide I'll not sway away to the next liquor shop and buy my Fascinations there right how does Bank control that so this is where cbdc will come in play so these let's say I take a loan of 1 lakh rupees so that one lakh will be year marked to say that one lakh will only and only be spend for agricultural instruments or agricultural processes I cannot spend it to any other thing right once that is done this gives two things a it gives a it ensures that uh this guy uh the let's say the farmer or me I spend it judici second I use it to substantiate my income right if I use it to increase my income the chances for me defaulting reduces the bank is basically uh comfortable giving me that loan because now they see okay I use it on the purposes and then I will be able to pay it back because I have increased my income here right uh cool so we'll move forward and again uh so I think this is one of the last few slides uh every coin has two sides right obviously uh if you were doing uh normal Bank paper thing right uh your privacy concerns were reduced obviously you had paper a lot of people could see them but again uh uh when you take these online you kind of have all the breaches that we are looking at right now all the data Brides that we have happening so we need to have data privacies set up here right then again algorithms have have bias that can creep in and then regulatory hurdles where we need to ensure that we balance whatever we are innovating we balance it with compliance in full compliance and regulations that RP set up for cool uh we'll move forward I think people have started leaving it's already 5:00 so uh I skip on these slides it's basically a success story of how let's say for credit B uh who have used their Technologies to have seamless onboarding and uh ensuring uh timely uh disbursements to the people who need the credit uh go to the next slide and again example of some uh digital the previous one example of some digital lending platform on what kind of things they are doing to ensure uh uh quick and faster delivery of loans and uh proper managed loans to the customers the borrowers right cool I think that's that should be the end of the presentation now uh uh sir I have one doubt what do you feel about cred that was founded by Kunal sha yeah feel in what terms I feel a feel very good things about okay and terms such as in disposal and the credit like I seen lots of reviews from people who are using that application and difference between s International and cred matches a lot and it has a lot of difference see uh S I mean I think it's a little broader question so Ked cred again is is doing great uh is doing wonderful I mean all all respect to canala uh they have uh they are into personal ending space right uh they uh brought in some hooks to the business uh where they understood uh they brought all the hnis basically they brought all all the people in who are credit card holders and the people who are CR card holders are cre cream de cream of the of the country yeah now they are able to give them easy access to credit because they know their financial history they know their transaction history and all that right so they are doing really great there and they have expanded their loan book like anything I think within three short years they were able to go to 4,000 CR I'm not sure of the how we are different from C we similar things C International basically is a group company lot subid one of the subsidiaries is SE India SE India who also have expanded their uh their books in a very short period with a huge margin right they they right now at around 10,000 CR plus right and they're doing beautifully right so they again so how each nbfc runs this business uh is subject to that uh is subject to their own uh Landing processes and everything right but the asset classes the products they're dealing with are also very different okay sir and one more thing uh in credit cards there are lots of points that are given for every spending purchases that I made and uh lots of people uh I have seen like in credit card points people are able to buy flight tickets and uh hortal uh can book hortal prices and with those credit card points uh isn't that a loss for the bank or such like that he are in fact uh it's not a loss for the bank it's basically it's a very different model altoe right uh you are uh getting points for some Services you are utilizing on those platforms right it's basically a hook that uh uh the banks are giving uh to the customers to utilize their services so credit cards itself if you look into how credit cards work uh there are instruments that earn that have a potential to earn a lot of money to the banks because uh let's say the interest rates are relatively higher than lending over there so you have interest rates of almost in credit cards right and again uh so you need people to kind of hooked up to these Services utilize it more right and then have their spends done on there so these are the the spends that the points that you get are are a very small percentage of what the potential that credit card holds for as a earning instrument to the bank and by the way now this things are changing a lot of freebies a lot of points that the credit card in companies used to give the banks used to give they're actually rolling it back those hooks have Banks actually those points okay okay and one more last question sorry for troubling you uh you might have heard of deep fake right yeah so lots of people impr presentate themselves with deep fake images and like that as s and they can do like with other cards and with pan cards so with that uh how can you identify or uh or else detect that this person is doing something uh illegal during the kyc or for loan approvals that's a very interesting question actually so again just so broaden it to a bigger level so uh let's say you you talked about the use of AI from the banking side Let's uh discuss for one or two minute what AI can do from the uh bradster side and how present how our present system can help and how our systems are actually adapting for that so what Sur has asked the same question but I'm asking as a general question which everyone would be able to got it understand from got it got it cool uh no that's a good question so uh so what AI is doing uh they again I mean it's doing a lot of new entities and lot of new banks are using AI to help prevent fraud detections right yeah as simple as that uh we started off uh around two years three years back people started off to understand whether the bank statement is fored or not or the adhar card the photocopy of the Adar card is forced or not right those are simple use cases easily detectable right uh with the Advent of let's a deep fix right you have uh vky video ky's happening right how do people uh how now ai is trying to help that also right there's some still some advancement that needs to be done right where AI is trying to help that battle where you let's say when you switch on your camera if if is this is there someone else face that cers over there right so again I'll not have a very clear answer for you guys here because unfortunately I've have not worked on that space But that is where uh you know uh uh third party vendors like again perf I would name or hyper these people are kind of trying to develop their Technologies F those and expand whatever they have been doing in document forging to real face forging if I call it in that okay thank you so much yeah B hey I just want to know more about cbdc right uh you told me that you know it's both beneficial for the bank as well as the customer to spend the money on the right places how well is it implemented at the moment sorry how well is it implemented uh like across banks no it's not implemented right now it's it's still a a proposed feature RBI is still working on it right this is uh the use case that I presented is one of those proposed features right there are many other proposed features that uh we think uh would come into picture once this particular currency digital currency is fully implemented another thing uh that you know another use case that they will solve is basically uh making and um uh making the storage and uh uh uh uses of this currency uh uh the the operation the the opics around the expenditure around it to be minimal because if you compare it to a physical currency right you have to spend the RBI has to spend a lot of money trying to upkeep that currency with digital currenc see those uh that amount can be reduced so that's another use case right so how RBI implements and in which use case it Implement is still to be seen and will come in sometime cool understood cool any other questions I think we are 10 minutes time yeah sorry I mean I last last question that I mean it's totally unrelated question I mean recently think pan card 2.0 came up

right uh is there uh anything related to RBI or some good stuff linked to it I mean obviously I didn't get the uh new one so uh I unfortunately would not be able to answer you that I'm not very impressed with pan card 2.0 but that's a good point let me read back and come back to you on that cool okay so this seems to have come to an end uh once again thank you so much for spending your time with us it is a very pre uh it is a very good moment for us thank you thanks a thank thanks the entire Calum team especially sonali and prakash for inviting me here as well thanks a lot folks you so much thank you so much you

2025-01-03 21:51

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