http://ibm.com/interconnect

1. Driving Inclusive Growth
through Mobility
Aniruddha Paul
CIO, ING Vysya Bank

2. The Importance of Being Ranjana Sonawane
Who: UIDAI
Unique Identification
Authority of India
What:
(1) Assign a UID to all 1.2 billion
Indians;
(2) Provide online biometric based
authentication services
Numbers:
(1) Database > 6 peta bytes
(6000 terabytes)
(2) > 1 billion addresses
(3) > 1 million auth requests/day
(4) 500 million UIDAI numbers
already issued

3. There is a Fortune at the Bottom of the Pyramid –
Unlocking the Fortune Requires Mobility
Need for unique ID
To provide
accessible
identification that
can be used for
entitlement
(unique and
universal)
Master Data
Management
Enable service
and applications
that require
a verifiable unique
ID (continuity and
mobility)
Data Mining
Real Time Analytics
Business
Intelligence
Prevent
duplication of effort
and leakages
existent in the
current system
Data
De-duplication
Data Quality
IBM Worklight & ING
Vysya Bank can
leverage the UIDAI
platform towards
Financial Inclusion and
Social Change through
appropriate banking
apps and services

4. Retail Banking: What’s been good for Indian banks
hasn’t been good enough for the country
• Scorching pace of growth since liberalization: CAGR of around
30% to touch a figure of INR 9700 Billion. Bankable households
are growing at a CAGR of 28% (2007-11)
• But the growth has been lopsided
• Retail loans constitute 7% of our economy versus
35% in other Asian countries
• Retail assets are at only 25% of total banking assets
• 41% of India’s adult population is un-banked
• Number of loan accounts: 14% of adult population
• 73% of farm households have no access to
institutional credit
• Share of money lenders in rural debt has moved from
17% in 1991 to 30% in 2002

5. This imbalance is caused by banks chasing the low
hanging fruit that constitutes the urban savvy consumer
• Purely from a profitability perspective, a large portion of the
Indian population is perceived to be “unbankable”
• The costs of servicing the remote rural sector using traditional
business models (KYC; branch centric model; incremental cost
of infrastructure) makes profitable banking unviable
• Therefore, all banks tend to target the upwardly mobile urban
salaried class
• Banks are even creating “financial exclusion” barriers
by increasing minimum balance requirements and average
deposit sizes
• Technology has lowered the cost of servicing this
target segment

6. Fortunately, The Scenario is Changing
• Financial Inclusion (FI) is an RBI mandate, government mandate
and a social mandate
• There IS a fortune at the base of the pyramid
• Social security payments and NREGA payments (> USD 100 billion) are
being routed through banks
• MFI’s have shown that it’s possible to run extremely profitable businesses.
Most major banks are working on a business-driven FI strategy
• Simplified KYC norms (e-KYC) and UID is expected to drive down
the cost and time of customer acquisition and servicing
• Innovation in mobile / hand held devices using an uniquely Indian
model offers the best potential breakout strategy. IBM Worklight with
its flexible, open architecture and easy integration will be a key
enabler of our initiatives

7. “Today, if you look at financial systems around the globe,
more than half the population of the world –
out of six billion people, more than three billion –
do not qualify to take out a loan from a bank.
This is a shame… The poor themselves can create a
poverty-free world... all we have to do is to free them
from the chains that we have put around them”
- Muhammad Yunus

8. Thank You