CONTEMPORARY FINTECH

Dr. Sindhu Bhaskar

Co-Chairman & Founder
EST GROUP
•

EST Global Inc.

Cambridge Innovation Center
One Broadway, 14th Floor MIT,
BOSTON, MA 02142
USA

M: +1 786 554 0579

Email: sindhu@estglobalinc.com
 TECH FINTECH INDIAN FINTECH
• Industrial revolution • Digitization with Computers • Computerization of banking
laid the basis • Emergence of financial solutions brought digitization
• Further growth was leading to Fintech • ATM, Net banking, Mobile
made during 1886- • Payment to Trade all systems got banking gave rise to changing
87 with the birth of converted to the digital ones. banking contours
Railways, • Started with revolution against • Jana Dhana Yojana for direct
Steamships and the legacy banks subsidy transfers created a
Telegraphs • Fintech deeply embedded to all unique base for expansion of
• Cross Border activities so it overturned all banking activities
Financial Movement sectors and we started talking of • Further fillip with
was created Insurtech, Proptech, Edutech, Demonetization, Digital India,
Regtech, Medtech, Healthtech, Made in India and Self-reliant
India

Financial technology (abbreviated fintech or FinTech) refers to the use of modern

technology to offer specialized financial services. The technology and innovation
competes with traditional financial methods in the delivery of financial services.
 FINTECH FEATURES
• Financial Technology, or Fintech is not new, from automated teller machines, ATMs in the late 1960s and
1970s to the rapid expansion of internet based and mobile banking

• However, what is new, now, is the rapid pace of innovation and the entry into financial services of both new
technologies and non-financial players with substantial potential benefits to consumers in the form of
lower cost more competition efficiency gains, increased access to financial products and markets.

• These technology-enabled innovations have the potential to address certain long standing and
widespread challenges of the financial system in the areas of inclusion, competition, literacy, and
integrity.

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• Financial technology is an umbrella term that incorporates a wide range of new business models
and technical innovations that have the potential to transform the financial sector.
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• Breakthroughs in technological capabilities, hardware, software, telecommunications, data analytics and
artificial intelligence, have: Clean Text
+ provided new ways to communicate, store and process information and
+ enabled the development of a number of new financial products and services, including Slide
crowdfunding, peer to peer lending, robo-advisors, high frequency trading, smart contracts and
distributed autonomous organizations. for your
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• They bring a new set of both conduct and Prudential risks, that should be reflected on by market
practitioners and more special specifically regulators, for new classes of entrance to the financial services
industry, while safeguarding financial stability, maintaining level playing fields, protecting consumers and their
privacy, ensuring market integrity and guarding against money-laundering and cyber-crimes.
 
 FINTECH ENABLERS
I0T - Internet of Things System of interrelated, internet-connected objects that are able to collect and transfer data
over a wireless network without human intervention. 
BIG DATA - including social media, internet, Mad rush to control data and monetize it.
NLP- Natural Language Processing ability of a computer program to understand human language as it is spoken and
written.
API - Application Programming Interfaces, A software intermediary that allows two applications to talk to each other.
Each time you use an app like Facebook, send an instant message, or check the weather on your phone, you're using an
API
Smart or Advanced Analytics, Thanks to technological advances such as IoT or Big Data, we now have up-to-date and
accurate information on different aspects that affect our business. The goal of Smart Analytics is to know how to read all
that data to help us make smart decisions.  
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INNOVATION DRIVERS
lower barriers of entry because of new customer access methods, such as the mobile phone replacing Layout
the retail bank
branch.
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affordable infrastructure such as analytics, artificial intelligence, cloud computing, and social technologies.
new currencies and credit systems, affecting incoming Banking and Investment players.
changing consumer behavior and expectations from financial services providers. FinTech has created Slidethe space

forto access
yourthese
for Financial Inclusion and the rise of emerging markets, which is driving economic growth, because of mobile internet
access, consumers who previously could not access financial services can now use their mobile phones
services.
This results in opportunities for FinTech startups to capitalize on the emerging markets Presentation
in the Global South
Africa, Asia and South America, combined with the rise in challenger banks. This means that a major source of
revenue for traditional banks will be significantly affected in both emerging markets and traditional markets.
BLOCKCHAIN
Transactions are broadcast, and every node is creating their own updated version of
events.
It is this difference that makes blockchain technology so useful –
It represents an innovation in information registration and distribution that
eliminates the need for a trusted party to facilitate digital relationships. Yet,
blockchain technology, for all its merits, is not a new technology.
Rather, it is a combination of proven technologies applied in a new way. It was the
particular orchestration of three technologies and application that is new. These
technologies are: 1) private key cryptography, 2) a distributed network with a
shared ledger and 3) an incentive to service the network’s transactions, record-
keeping and security.
The result is a system for digital interactions that does not need a trusted third
party. The work of securing digital relationships is implicit — supplied by the
elegant, simple, yet robust network architecture of blockchain technology itself.
The “De-institutionalization” of Trust (cont’d)
• “Trust is the key element of blockchain technology. When transactions are executed
and settled on a distributed ledger, counterparties don't need to have an established
trust relationship. If each participant in the transaction trusts the blockchain itself then
they
don’t need to directly trust each other . This opens up new avenues of customers for
businesses operating on blockchains.”
• - “Blockchain's Big Innovation is Trust, Not Money” by Jason Liebowitz
• https://www.coindesk.com/blockchain-innovation-trust-money/
The “Fourth Industrial Revolution”
Blockchains are rapidly becoming the foundation of the
Fourth Industrial Revolution:
• They are being used to create distributed market structures to address security
risks and eliminate single point of infrastructure failure.
• Supplying regulators with real time data on financial flow and asset risks, they
stand poised to improve the oversight of international markets.
• They are integrating granular provenance tracking, identify management and
concepts of digital scarcity horizontally and vertically through global supply chains.
• In a 2015 World Economic Forum survey of global business and government
leaders 58% of respondents believe that 10% of global gross domestic product
(GDP) will be stored on blockchain technology.
 What is Blockchain
● A public ledger” (vs. private ledger held by a bank or a financial
institution)
● Block: all the transactions/records within a period of time
● The blocks are added to the Blockchain in a linear, chronological
order
● Each “node” (Device) gets a full copy of the Blockchain
upon joining the network
● The Blockchain has complete information about transactions from the
genesis block to the most recently completed block
 Blockchain Combines
• Large database technology,
• Used by voluntary participants;
• Leverages Peer to peer networking,
• Distributed accounting ledgers that use software
to track every detail of a transaction,
• Cryptography to protect digital transactions against hacking,
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BENEFITS OF BLOCKCHAIN
 Debunking the myths
Myths Reality

Blockchains are ‘trustless’ Blockchains always require some

degree of trust

• Although blockchains may help reduce the need for trust, they do not
completely remove the need for trust.
• At the bare minimum, trust must be placed in the underlying cryptography.
• In the case of a permissioned network, trust must be placed in the
operator(s) and/or the validators.
 Debunking the myths
Myths Reality

Blockchains are immutable or Transactions on a blockchain network

‘tamper-proof’ can be reversed by network participants
under specific network conditions.

• The illusion that blockchain transactions are immutable stems from its
append-only data structure that suggests that data can only be added to,
but not removed from the database.
• However, blocks comprising transactions can, in theory, be reversed
if enough nodes decide to collude.
 Debunking the myths
Myths Reality

Blockchains are 100% secure Blockchains are not automatically more

secure than other systems

• Blockchains employ cryptography for authentication, permission

enforcement, integrity verification, and other areas.
• The mere application of cryptography, however, does not make the
system more secure per se.
• The system may be more resilient as data storage and permissions are
distributed, but compromising the private keys of some network
participants could give attackers access to the distributed database
 Smart Contracts (Ethereum)
• Inculcated in the Ethereum crypto-currency
• Smart contracts are computer protocols that facilitate,
verify, or enforce the negotiation or performance of a
contract, or that obviate the need for a contractual
clause.
• Smart contracts usually also have a user interface and often
emulate the logic of contractual clauses.
• Smart contracts work in three steps:
• Coding
• Distributed Ledgers
• Execution
 TOKENS & COINS

CBDC & DIGITAL CURRENCY BITCOIN ETHEREUM DGX GOLD COIN value from an external
asset, CBDC – PROGRAMMABLE MONEY RIPPLE AGX SILVER COIN tradable asset. For example,
WHOLESALE stocks or real estate. TETHER, RETAIL
USDT
 GROWTH CUM BUSINESS CYCLE OF STARTUPS

IDEATION TEST NET BETA

TESTING

POCKETS OF PRODUCT
FRIENDLY SANDBOXING LAUNCH
SUPPORT

EXIT –
PROOF OF MERGER OR
INSTITUTIONAL
CONCEPT BOUGHT
SUPPORT
FUNDING OVER
 AGENTS & PHASES OF CHANGE

INNOVATOR
COLLABORATOR E-COMMERCE
• INCUBATOR
• ECOSYSTEM • SCALING
• ACCELERATOR
• INCLUSION • TRACKING CYCLES
 TRENDS IN INDIAN FINTECH

BOX CHALLENGER
PAYMENTS
BANKING & NEO BANKS

P2P FINANCIAL
INSURTECH
LENDING INCLUSION

ROBO AI & IOT BASED

BIOMETRICS
ADVISORY SECURITY
 FACES OF INDIAN FINTECH
PAYMENT & SUPPLY
LENDING HIGHER TECH
SETTLEMENTS CHAIN

ACH (Automated P2P LENDING BLOCKCHAIN AI –

Clearing House) ARTIFICIAL
IMPS, RTGS PAYMENT BANKS SME & MSME INTELLIGENCE
FUNDING
UPI (Unified ALTERNATIVE ML –
Payments LENDING BHARAT BILL MACHINE LEARNING
Interface) – BHIM, PAYMENT
PAYTM LENDING KART IOT –
POLICY BAZAR INTERNET OF
DMT - NIYO – LENDING THINGS
(Direct Money & INSURANCE BILL DESK
Transfer) ROBOTICS
PAYTM PAYPAL
BOX BANKING & QUANTUM
BAAS API INTEGRATION- COMPUTING
(APPLICATION
BANKING PROGRAMMING
CHATBOTS INTERFACE)

CLOUD BANKING OPEN – BUSINESS

& POINT OF BANKING
SERVICE (POS)
 REPORT CARD
SUCCESS REQUIRED
• HUGE POOL OF INNOVATIVE MINDSET • SHORTAGE OF RELIABLE CONSUMER
• TECH READINESS DATA
• CORPORATE SUPPORT • DEFICIENT TECH INFRASTRUCTURE
• FINANCIAL INSTITUTIONS SUPPORT • DIGITAL SAFETY & SECURITY
• RBI REGULATORY SUPPORT • TRUST DEFICIT TO INNOVATIONS AND
• ADEQUATE FUNDING FROM WITHIN AND TECHNOLOGY
OVERSEAS • MULTILAYERED INDIAN SOCIETY
• GOVERNMENTAL PROACTIVE REGULATIONS • BIG BANKS STILL SLOW TO ACCEPT
PUSHING BOUNDARIES FURTHER DIGITAL REALITY
• POSITIVE TREND TOWARDS MASS • AGE OF POLITICAL ECONOMY
ADOPTION • SOCIAL STRATIFICATION SYSTEM BASED
• BORDERLESS TECH GROWTH EMPHASIS ON RELIGION, CASTE, LANGUAGE ETC.
ON COLLABORATION DOES NOT ALLOW FREE MOVEMENT OF
• CONTACTLESS OPERATIONS TECHNOLOGY
• SUPER APPS LIKE PAYTM • CRYPTO CURRENCIES ARE STILL A NO NO
• WALLET BASED TRANSACTIONS BUT WORLD IS MOVING WITH CRYPTO
• CLOUD BASED SERVICES
• AGGREGATORS RULE THE ROOST-
• PAYTM, POLICY BAZAR –INSURANCE
AGGREGATOR, BHARAT PAY/BILL DESK-
PAYMENT AGGREGATOR
 MISSING COMPONENTS OF FINTECH IN INDIA
VIRTUAL CURRENCIES: ICO ROUND, UTILITY COINS ETC.

CRYPTO EXCHANGES: SECURITY EXCHANGES

DIGITAL ASSETS: BITCOINS AS ASSET HAVING VALUE

SECURITY TOKENS: REGULATED AS COME UNDER SECURITY LAWS

STABLE COINS: PARITY WITH USD AS BACKED UP BY THEM

DIGITAL IDENTITIES: ONE EARTH ID, SINGLE IDENTITY, OPEN BANKING

CBDC - CENTRAL BANK DIGITAL CURRENCY: CENTRALIZED OR

DECENTRALIZED,WHOLESALE OR RETAIL, NATURE OF CBDC IN POLITICAL ECONOMY, GLOBAL
SUPREMACY & COLD WARS. WHICH COUNTRY CURRENCY WILL LIQUIDATE ITSELF TO FOLLOW
OTHERS.
CHINESE DIPLOMACY OF INFRASTRUCTURE LENDING IN NAME OF OBR WILL CREATE FAILED
STATES WHICH WILL SURRENDER THEIR CURRENCY TO DIGITAL YUAN AND TRANSFER OF
COUNTRY ASSETS TO CHINA.

NEED TO HAVE A MECHANISM TO INTERACT WITH CBDC OF DIFFERENT COUNTRIES.

DO YOU THINK BY CHANGING THE TEXTURE FROM FIAT TO DIGITAL, THE SCOPE AND
IMPORTANCE WILL CHANGE? YES ALSO AND NO ALSO.
INDIA SHOULD START WORKING ON DIGITAL REGULATIONS AND OPEN ITS DOORS
 EDTECH/EDUTECH 3.0
E-LEARNING TO LEARNING MANAGEMENT SYSTEMS (LMS)
DIGITAL SHIFTS
•LOCATION – CLASSROOMS TO HOME TO ANYWHERE, ASYNCHRONOUS CLASSROOMS
•REACH – CLASSROOM TO WORLD
•TEACHING AIDS – BLACKBOARDS TO ZOOM AND WEBEX AND OTHERS
•COMMUNICATION THRU SOCIAL MEDIA
•INTERACTION LEVEL = LOCAL & IMMEDIATE TO GLOBAL
•TIMING – NO FIXED TIME, LEARN AS YOU GO WHEREVER YOU GO
•TEACHING METHODOLOGY – GLOBAL CONSULT
•TEACHER TRAINING – GLOBAL TRAINING
•ASSIGNMENT – DIGITAL ALLPPT
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•ONLINE PROCTORING CHANGES THE FORMATS OF EXAMS, CORRECTIONS AND EXAM
SURVEILLANCE.
•EXAMINATION AND FORMAT – AI BASED MODELS
•CORRECTIONS - AI BASED
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•EXAMINATION SURVEILLANCE – SCANNERS AND CAMERAS WITH AI TO RECORD
UNREASONABLE TWIST AND TURN OF BODY AND HEAD AND EYES LEADING TO CHEATING
FREE EXAM ENVIRONMENT. NO PHYSICAL SUBSTITUTION OF EXAMINEES. for your
• Presentation
BLOCKCHAIN BASED RESULTS AND CERTIFICATION - STORAGE IN CLOUDS BECOMES
THE BASIS FOR THE SUCCESSFUL VALIDATION OF THE GENUINE RESULT ANYTIME, AS
BLOCKCHAIN IS BASICALLY DECENTRALIZED, IMMUTABLE RECORDS, ENHANCED
SECURITY WITH ENCRYPTION, DISTRIBUTED LEDGERS, PROOF OF WORK CONSENSUS,
FASTER SETTLEMENT/OUTPUT
Web 1.0 Web 2.0 Web 3.0
Mostly Read-Only Wildly Read-Write Portable and Personal

Company Focus Community Focus Individual Focus

Home Pages Blogs / Wikis Live-streams / Waves

Owning Content Sharing Content Consolidating Content

WebForms Web Applications Smart Applications

Directories Tagging User behaviour

Page Views Cost Per Click User Engagement

Banner Advertising Interactive Advertising Behavioural Advertising

Britannica Online Wikipedia The Semantic Web

HTML/Portals XML / RSS RDF / RDFS / OWL

Data of many was Data was personalized

Data was not Focus
 controlled by some mediatory  and no use of mediatory
 SDG
ESG Sustainable Development Goals
Environment, Social and Governance – is the new
buzz word in the investment community. The “E” in
“ESG”, Environment, encapsulates the natural 17 Goals to Transform Our World
resources a business consumes, the pollution it The Sustainable Development Goals are a call for
creates, the carbon emissions it generates and many action by all countries – poor, rich and middle-
other environmental impacts. The “S”, Social, refers to income – to promote prosperity while protecting
the links and ties a business develops with the local
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the planet. They recognize that ending poverty
community, the way it treats its employees, its focus must go hand-in-hand with strategies Layout
that build
on diversity and inclusion, and its reputation as a economic growth and address a range of social
trusted partner to stakeholders. “G”, Governance, Clean
needs including education, health, Text
social
deals with how a business is governed, including protection, and job opportunities, while Slide
tackling
board effectiveness protocols, audit controls, climate change and environmental protection.
approach to senior executive compensation, and More important than ever, the goals forprovide
youra
appropriate reliance on independent directors. Presentation
critical framework for COVID-19 recovery.
 SDG & ESG -Creating long-term value

Long-term value development for business and society is the goal of ESG-based
investment decisions. This is a natural fit with the SDGs, which were founded on
globally shared values, social expectations, and a sustainable and inclusive approach
to economic growth and well-being.
In simple terms: the SDGs are the why and ESG is the how.
ESG factors can be roughly translated to SDGs on the corporate level as unique parts
of ESG considerations can be assigned to all 17 goals. Businesses can utilize
multiple strategies to align with the SDGs, including assessing, mapping, and setting
goals, strategic integration and collaboration, and reporting and communication.
The SDGs provide a wide range of chances for businesses to make a difference, with
169 specific aims. Ultimately, organizations and investors who proactively focus on
the SDG Agenda 2030 are likely to improve their ESG score and uncover new growth
and development opportunities.
ESG
FUTURISTIC PARADIGM
 Address:
EST Global Inc.
Cambridge Innovation Center
One Broadway, 14th Floor
Cambridge, MA 02142
USA

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