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Parallel banking system promising future for banking and finance in India

The convergence of various financial technologies such as data analytics, Artificial Intelligence (AI), Machine Learning (ML), and Blockchain have transformed the banking and financial services sector as we know it, giving rise to the dynamic and agile fintech sector.

Kumar Gaurav
22nd Jun 2018
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Along with North America and Europe, the Asia-Pacific region to has seen an exponential rise in the number of fintech start-ups, with venture capital-backed investments in the Indian fintech sector reaching USD 1.6 billion in value over the past three years. 

On the global front, investment in AI applications during the 2016-17 period reached USD 5.1 billion, rising from 2015’s USD 4 billion. Fintech firms that provide technology-driven solutions in the financial space also referred to as fintechs, have evolved from being a disruptive threat to potential collaborators for financial institutions that are now helping them make the most of the technology boom in the sector.

India’s banking and finance sector: Going the fintech way

AI, Machine Learning, Blockchain, and data analytics are technologies with a wide range of potential use cases in the fintech industry. Over the past couple of years, the Indian fintech landscape has seen these technologies evolve considerably and at a rapid pace, thus bringing it closer to other emerging fintech markets in the West. 

But until very recently, India’s banking and finance industry was highly resistant to change and adoption of technology, with high barriers of entry to new players, be it in the B2B or B2C segments. However, the massive technological revolution has yanked the sector out of its state of complacency and facilitated a massive shift in how both incumbent players, as well as consumers, perceive innovation in the banking and finance space. 

New-age fintech start-ups are keen on augmenting the offerings of existing players through tech-led plug-and-play solutions which can significantly enhance the user experience, both internally and externally. Similarly, traditional institutions have come to be more accepting of new technologies and innovation, exploring collaborations with start-ups, and developing business models that benefit both.

More and more traditional financial institutions are investing in emerging technologies as a way to boost the efficiency of their operations, increase productivity, and enhance the overall customer experience. Artificial Intelligence has been acknowledged as one of the most exciting and lucrative segments within the fintech space in India. 

AI and ML with data analytics presents an opportunity for banks and financial institutions to offer far more advanced and personalised customer experiences by leveraging automation to deliver faster turnaround times on customer queries and requests. 

More than 36% of large financial institutions in the country have already begun investing in automation and AI, while nearly 70% report that they are planning to in the near future. Large financial institutions and corporate banks are extensively leveraging AI and ML to automate and streamline workflows, while chatbots are emerging as highly effective points of contact between the customer and the service provider which use conversational analytics to ensure efficient customer service and fulfilment of customer demands.

That banks and the traditional financial sectors will need to embrace the disruption created by fintech firms is a fact which has been acknowledged by both the industry and the government. With financial inclusion as a top priority for the Indian government, policy makers and financial regulators are now creating a conducive ecosystem for the growth of the fintech sector, which will ultimately play a critical role in facilitating large-scale financial inclusion of the country’s unbanked and unserved populace

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Kumar Gaurav
An engineer and serial entrepreneur who is among ‘Hundred most influential people in the world’ on Blockchain technology. Kumar has been awarded the prestigious O1 Visa Status by the government of USA, a rare recognition awarded only to individuals with domain-specific extraordinary skills or have received internationally recognized award, such as the Nobel Prize. With his massive expertise on one of the most transformative digital asset transaction technologies in the world, Auxesis & Cashaa founded by Kumar have become world’s Top 100 blockchain companies. After completing his graduation in Computer Science from Amity University. Kumar went on to pursue his post-graduation in Management from Politecnico di Milano. His extensive technological expertise helped him to bag an opportunity to design computer systems for iconic automobile manufacturer Ferrari. During his time in Italy, he also co-founded Darwinsurance, the first Italian peer-to-peer insurance platform backed by AIG which was acquired by Esedra. Kumar journey in the Blockchain space started after he read the Bitcoin Whitepaper written by Satoshi Nakamoto back in 2013, which later became the basis of his future endeavours. He was awestruck with the potential of this technology. Being a new technology he first trained himself to build a system which can benefit the masses. With a mission to educate people about blockchain, he made 50+ appearances as a speaker at parliaments, various government forums and conferences and became one of the most influential blockchain personalities in the world. His vision led to the foundation of Auxesis Group in 2014. Over the years Auxesis has pushed Blockchain innovation in partnership with governments and top fortunes companies across the globe. Auxesis group has designed a Blockchain network called Auxledger which has emerged as the world’s largest blockchain technology based network with a user base of 53 Million people and working with likes of IBM & HPE. Kumar founded Cashaa in 2016, which has been instrumental in expanding the horizons of blockchain implementation into Fintech industry. Cashaa digital wallet challenges legacy banking and gave people control over their money and bringing the cost savings of Blockchain innovation to the masses. Cashaa turned out to be a revolution which was supported by 50,000+ people in its ICO raising over 33 Million USD, in few weeks. With Cashaa, he working on conceptualizing a ‘better banking’ platform that aims to serve the ‘next-generation billions’ who are either dissatisfied, or entirely missing from the existing financial system. Listed among the Top 20 blockchain companies in the world, Cashaa offers a one-stop destination for its users to transact in national fiat money as well as cryptocurrencies and carry out a comprehensive range of financial transactions, from shopping to investments and salary deposits, at significantly lower costs and better turnaround times. In due course, Kumar envisions Cashaa as the most preferred platform for global audiences looking to understand, and implement blockchain technology in their daily lives to enjoy its numerous benefits. Soon to be launched across 200 countries, Cashaa has introduced a brand new model for executing day-to-day as well as exclusive financial transactions such as currency exchanges at highly affordable costs and superlative efficiency, while ensuring the complete security that is a hallmark of blockchain. Kumar regularly features in the editorial board of global blockchain media and is a much sought-after international speaker on emerging technologies, having held talks in prestigious institutions such as IIT Mumbai, British Auditorium and the European Parliament. His position as a global authority on the concept of blockchain has been recognized time and time again, most recently by being nominated as one of the World’s Top 50 Innovators from the Industries of the Future.

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Authors
Kumar Gaurav
An engineer and serial entrepreneur who is among ‘Hundred most influential people in the world’ on Blockchain technology. Kumar has been awarded the prestigious O1 Visa Status by the government of USA, a rare recognition awarded only to individuals with domain-specific extraordinary skills or have received internationally recognized award, such as the Nobel Prize. With his massive expertise on one of the most transformative digital asset transaction technologies in the world, Auxesis & Cashaa founded by Kumar have become world’s Top 100 blockchain companies. After completing his graduation in Computer Science from Amity University. Kumar went on to pursue his post-graduation in Management from Politecnico di Milano. His extensive technological expertise helped him to bag an opportunity to design computer systems for iconic automobile manufacturer Ferrari. During his time in Italy, he also co-founded Darwinsurance, the first Italian peer-to-peer insurance platform backed by AIG which was acquired by Esedra. Kumar journey in the Blockchain space started after he read the Bitcoin Whitepaper written by Satoshi Nakamoto back in 2013, which later became the basis of his future endeavours. He was awestruck with the potential of this technology. Being a new technology he first trained himself to build a system which can benefit the masses. With a mission to educate people about blockchain, he made 50+ appearances as a speaker at parliaments, various government forums and conferences and became one of the most influential blockchain personalities in the world. His vision led to the foundation of Auxesis Group in 2014. Over the years Auxesis has pushed Blockchain innovation in partnership with governments and top fortunes companies across the globe. Auxesis group has designed a Blockchain network called Auxledger which has emerged as the world’s largest blockchain technology based network with a user base of 53 Million people and working with likes of IBM & HPE. Kumar founded Cashaa in 2016, which has been instrumental in expanding the horizons of blockchain implementation into Fintech industry. Cashaa digital wallet challenges legacy banking and gave people control over their money and bringing the cost savings of Blockchain innovation to the masses. Cashaa turned out to be a revolution which was supported by 50,000+ people in its ICO raising over 33 Million USD, in few weeks. With Cashaa, he working on conceptualizing a ‘better banking’ platform that aims to serve the ‘next-generation billions’ who are either dissatisfied, or entirely missing from the existing financial system. Listed among the Top 20 blockchain companies in the world, Cashaa offers a one-stop destination for its users to transact in national fiat money as well as cryptocurrencies and carry out a comprehensive range of financial transactions, from shopping to investments and salary deposits, at significantly lower costs and better turnaround times. In due course, Kumar envisions Cashaa as the most preferred platform for global audiences looking to understand, and implement blockchain technology in their daily lives to enjoy its numerous benefits. Soon to be launched across 200 countries, Cashaa has introduced a brand new model for executing day-to-day as well as exclusive financial transactions such as currency exchanges at highly affordable costs and superlative efficiency, while ensuring the complete security that is a hallmark of blockchain. Kumar regularly features in the editorial board of global blockchain media and is a much sought-after international speaker on emerging technologies, having held talks in prestigious institutions such as IIT Mumbai, British Auditorium and the European Parliament. His position as a global authority on the concept of blockchain has been recognized time and time again, most recently by being nominated as one of the World’s Top 50 Innovators from the Industries of the Future.

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