Srinivas Yelandur, Director & Digital Advisory, Services Leader, EY LLP explains how fintech companies are giving birth to new and innovative ideas and replacing cash with digital transactions.
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00:00 FinTech companies are giving birth to new innovative ideas and you have good examples.
00:13 You have M-Pesa, you have MobiQuik, you have Paytm, they are the leaders and they are providing
00:19 everything in the digital world for a large variety of customers.
00:25 So the value here that FinTech is providing to demographies like emerging markets like
00:30 India is customer convenience.
00:34 Today the FinTech game has changed and not only has the game changed, the scale has changed,
00:41 the size of the field has changed and the rules have changed.
00:46 And if you look at the way we used to bank or the large population used to bank earlier
00:51 about 15-20 years ago, cash was king because primarily it was all cash-based transactions.
00:57 Today there is a new queen in the entire world of digital and that is digital wallets.
01:04 Digital wallets have taken the payment and the cash transactions to the next new height.
01:11 And if you look at the replacement of cash transactions, it's going to come because there
01:17 are going to be new models of virtual money.
01:21 We have seen radical ideas like Bitcoin and so people are very comfortable transacting
01:29 with non-cash-based mechanisms.
01:33 Today India is in the forefront because they are looking at payment platforms and payment
01:39 banks and issuing new payment licenses to all of them.
01:43 And this for India is very important because it's going to drive the GDP and the cashless
01:49 economy and create financial inclusion.
01:53 Digital disruption and transformation in finance and FinTech is very challenging because on
01:58 one hand here is a huge opportunity to innovate and second there is also the large population
02:03 which throws up areas like risk.
02:07 And for the financial services industry, it's very unique and very different from other
02:13 sectors because this is the only industry that I see which is concurrently being challenged
02:19 by multiple disruptions at the same time.
02:23 And when you look at it, they have to get on to the innovation wave, ride and create
02:32 value to customers.
02:34 So customers are moving to online more soon and if you start looking at the West, the
02:41 West always had a classic case of moving from one revolution to another.
02:46 They adopted the web, the desktop and moved to the mobile.
02:50 In India what has happened is that we have skipped the entire revolution of web and desktop
02:54 to a large extent and we are entrenched only in the mobile revolution.
03:00 If you look at recent statistics that have been thrown up, approximately 30 to 35% of
03:07 Indians will own a mobile smartphone by 2017.
03:13 And with the power of smartphones, access to banking, access to financial institutions,
03:20 access to payments is becoming much easier.
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