Interoperability across e-wallets is now a reality.

Interoperability across e-wallets is now a reality

RBI is set to unleash a slew of measures by opening up the UPI platform to allow interoperability among e-wallets as part of its digitisation campaign. The guidelines are likely to be issued shortly by RBI. It shall also finalize the fee structure to be levied for transfer of funds between various e-wallet service providers for accessing the UPI structure.

Presently, e-wallets are using the UPI network for transfer of funds with the help of partner banks. Interoperability between various e-wallet service providers shall allow users of two different e-wallet service providers to directly transfer funds between them without their dependence on banks. This could best be explained by an example – say a customer using Paytm could transfer funds to a merchant who is using a different e-wallet like Mobikwik.

This step taken by RBI further emboldens the digitization drive by expanding the reach of users without the involvement of any bank. However this does not mean that banks shall have no role to play because the service providers of e-wallets shall have to depend on banks for settlement and reconciliation or for that matter, issues related to grievance redressal.

Therefore it can be summed up that the government has been consistent in its policy of digitization and is looking to evolve new strategies from time to time. The day the inoperability among e-wallets begins, one thing is for sure that the user shall be the ultimate gainer as it shall be spoilt with choices for easy, secure and fast medium of fund transfers.

 

IoT Fast Evolving to meet Today’s Business Demands

IoT (Internet of things) is the most talked about subject both in the personal world as well as in the business world as it has a major influence on today’s lifestyle because it impacts not only the lives of people today only but also how they work?

IoT has gradually developed over the years from the confluence of the internet, wireless technologies, MEMS (micro-electromechanical systems) and micro services.

Some of the integral and vital in the scheme of things pertaining to IoT are as follows-:

Connectivity -: The Internet of Things (IoT) relies heavily on network infrastructure for meeting modern day demands. The three pillars for carrying IoT applications are high-speed connections, integrated security, and low latency response. Therefore it is imperative for every organization to adopt a flexible and scalable wired and wireless network infrastructure. This would help set-up IoT applications anywhere from the cloud to the network edge with fog computing.

Key challenges to keep connectivity intact in IoT

  • Signalling

Bi – directional signaling plays a very significant role in the success of IoT for routing of all data between devices. Senrysa has achieved considerable success in implementation of IoT for uninterrupted streaming of reliable data.

  • Security

“Integrated Security plays an important role in Cyber security because it not helps in keeping a check throughout the network but also helps in increasing visibility. Some important aspects of integrated security are as follows.

a.) Encryption: It is an important aspect as there is a need to build reliable encryption for both servers and connecting devices.

b.) Authorization: It is imperative and critical that as part of IoT technology, every user must be aware that any data streaming out at any time out of server or device should be authorized one.

c.) Open ports: Installation of Bi-directional communication is important as it helps to prevent open ports exposed to the internet.

  • Power consumption

Power consumption is very crucial and a very big challenge since a large number of devices that make up an IoT are connected on 24 X 7 basis. This puts an added pressure on CPU power consumption and in order to prevent the battery of a device from draining out a robust network is required.

  • Detection of presence

Detection of presence is important as it helps to keep an eye on the network. Any breakdown in any IoT device does take time to detect unless and until a proper system is in place to detect when a device goes offline in a network. To sum up, presence detection is very vital and proactive step in the scheme of IoT for monitoring purpose the exact status of all connected device.

  • Bandwidth

It is important to keep a tab on the bandwidth consumption of all devices connected to a network. In today’s business scenario where millions of devices remain connected throughout the day, it is of prime importance to maintain a large tightly knit network which helps in seamless data transfer. It is important to devise ways to maintain strict monitoring as the number of gadgets shall multiply manifold in the years to come.

 

 

Financial Inclusion has taken a significant role in the present times

Senrysa’s UBBP platform is a non-banking entity delivering comprehensive banking services to the un-banked Indian population. With a client base of 20 million and rising we are proud to support and commit ourselves to the consumers in the journey of diverse, branch-less, multi-channel inclusive banking services.

Visit us www.senrysa.com for a detailed know-how on our area of work and expertise.

Digitization – The only way to move forward

Digitization drive has reached an inflection point in banking parlance: it is no longer a mere option but an absolute must. The motive is not solely to pull in the huge unbanked customer base but also serve the existing market by providing them with easy access to carry out transactions smoothly and securely on their smartphones. This provides relief to the customers and helps them save their valuable time by carrying out transactions on their smartphones without the inconvenience of going to the bank for every little task.

Digitization has helped banks successfully leverage technology effectively and efficiently. This has massively minimized costs, without having to invest more in brick and mortar presence for garnering new customers into its database. Thus banks are able to achieve a dual objective and able to generate more revenue with the same infrastructure thus ensuring that their bottom line remains healthy.

In order to ensure that the word digitization is not overused and connoted with cost factor singularly, Indian banks do realize the fact that for achieving digitization, it doesn’t imply putting in massive investments in technology or any distinctive change in its operative module; rather what is required is leveraging the existing platforms and investing wisely on the basis of requirements.

Banks are adopting mobility based platform keeping the financial inclusion goal in mind and at the same time able to maintain pace with the growing trend of higher mobile penetration among the masses. This emerging trend definitely points towards mobile and cloud-based application mediums, which undoubtedly shall rule the roost in the years to come.

It is important to note that for availing cloud-based services: banks shall have to only consider investments related to only operational cost. However simultaneously, it also needs to build safeguards against data theft and ensure that security along with compliance is strictly taken care.

Introduction of Newer Products  

Technology in the banking sector has introduced new products viz Blockchain technology. A blockchain is one type of distributed ledger comprising of unchangeable digitally recorded data in packages called blocks. The ingenuity of this new concept helps in simplifying technology further by storing data block wise in a linear chain. Therefore each block containing data is cryptographically hashed which ensures that the data remains untampered and unchanged. One of the key innovation of blockchain technology is the crypto instrument which is poised to be a fundamental game changer in the history of banking world over. Cryptocurrency, an outcome of the crypto instrument shall be a new form of money which will pave the way for a new financial system. The role of banks in the day to day transaction shall be further  marginalized.

Messaging Bots is the other major invention by banks: using technology effectively to engage with customers. According to Hardeesh Kumar, Canara bank has plans to deploy such applications across various mobile apps and the bank’s website to facilitate customer’s related queries by engaging with them regarding information related to financial products.

Similarly, Ashutosh Kumar says Standard Chartered too is working on similar lines and if a corporate is registered with any one of the banks mobile apps-’Straight to banking platform’.In such a case, the customer can view a cash position of any company by simply speaking on their smartphones – show me the cash position of XYZ Company. The app would then respond by displaying the information of cash flow position on the screen of the customer.

The above emerging trend  points towards a fascinating digital journey wherein customers are bound to benefit from  technological advancement. Besides making it convenient, banking experience  shall be easy and secure. It could therefore  be said that the  banking domain  will not be the same again. Several pilots are undergoing trial runs by most of the banks and we believe it’s a matter of time before the entire BFSI industry undergoes major transformations in the years to come.

 

Q3 corporate earnings post demonetisation- Senrysa’s Perspective

If there is one news that India Inc. have been waiting with baited breadth – Report card for Q3 (2016-17) corporate results. This is because post demonetisation, life in India has not been the same before. Indians have faced severe cash crunch post demonetisation and are slowly grappling to come in terms with the same. However, they are moving slowly but surely towards a digital India.

Post demonetisation corporate earnings for Q3 have remained sluggish overall, bad for some and not so bad for others. If we were to take a synopsis of the entire industry, the worst affected has been the auto industry. It has been routinely observed all along that the trend for auto sales remains poor in December since most people anticipate low return on resale value of their vehicle and prefer to defer buying decision until January. This year in particular auto industry suffered a double whammy considering the above factor and also sales remained low because of scarcity of cash/withdrawal restrictions.

According to Kotak Institutional equities revenue and net profit for auto companies is likely to decline by 4 percent and 10 percent respectively. The scenario in two wheeler sales would have been worse as around sixty percent of sales in this segment takes place in cash but thanks to higher sales in first 40 days of Q3 have therefore salvaged the situation somewhat which otherwise  would have been very bad.

Industries like pharmaceuticals, IT, commodities and oil & gas have not faced any major brunt of demonetization largely due to their global customer base and also because their exposure to retail customers has been minimal.  Most market analysts also feel that Q3 results, especially earnings In December may not be all that bad for Nifty 50 and large companies too. Here again, according to Harish Krishnan, Vice-President — Fund Management Equity, Kotak Mutual Fund. “The probability of earnings declining by double digits in Q3 is very low. Forty-five out of 90 days have been good due to festive season. The first half was also good,” Therefore it could be safely argued that most companies in the Nifty100 will also see not much impact from demonetization.

 Overall the fallout of demonetization on third quarter earning shall be negated thanks largely due to Seventh Pay Commission payouts coupled with robust festival season. The above two has been a saver for sectors such as consumer goods and consumer durables which otherwise would have witnessed plummeting sales due to severe cash crunch. Therefore Santa’s gift as Seventh Pay Commission payouts marked with other festivities during this quarter have certainly been able to cushion things somewhat and saved the blushes for most manufacturers from the dismal performance.

We feel that companies dependent on urban areas for sustenance will be less impacted when compared to those operating predominantly in rural areas since the latter has less access to banking and limited use of plastic money compared to the former.

Status of mwallets post demonetisation

The day the breaking news on demonetisation flashed across the media, Indians were left flying high and dry in a frenzy. We Indians, hitherto use paper money to meet our daily chores or for daily mundane activities.

Post demonetisation, scarcity of cash did lead consumers to a hard time queuing up in front of ATM’s or bank counters for withdrawal of cash. This inadvertently forced many Indians to fall in line with government’s initiative for a push towards more electronic transactions. The net result being that consumers have been quick in adopting mobile wallets as an easy and alternate solution for making payments through the digital route.

The demonetization drive is expanding the reach of the mobile wallet companies with active participation both in urban and rural India.  Also the fact that Telecom Regulatory Authority of India (TRAI) has allowed mobile wallet companies the permission to use (USSD) unstructured supplementary service data has helped to ease out making online payments for smartphone users.

Making most of this digital wave, mobile wallet companies are expanding their reach to both urban and rural parts of the country. Most mobile wallet service providers have been making quick inroads and making hay while the sun is shining by facilitating electronic transaction smoothly so that people get familiarized quickly especially with the scarcity of cash around.

Paytm claimed to have made transactions worth Rs 120 crores as on 22nd November – a mere 14 days post government’s announcement on demonetisation. Other ewallet service providers also have hugely benefitted and are busy pushing boundaries to the limit.

MobiKwik is claiming 20 times higher growth in terms of transactions carried out on its platform. Further, the company has entered into a contract with NHAI enabling commuters to go cashless towards payment of toll fees using its ewallet services at 391 toll plazas across pan India. Another company that is targeting the rural areas is Oxigen which allows consumers to cash in and cash out. The company, in particular, has been a huge success in Bihar.

The scarcity of physical cash has led people to opt for transactions using the digital medium. The process of switching over from cash to digital platform has been smooth unexpectedly. People have a lot of reservations earlier as they think it to be cumbersome for usage purpose but having adopted the system once, they found it not only simple but feel empowered too.

It is heartening to note that small traders in Delhi which include tea sellers, vegetable vendors have started accepting payments via digital mode which includes mwallet too.

According to Assocham, mwallets are likely to command half of the market share in the mobile payment segment in the next five years. Taking a leaf  from the above market trends, Senrysa Technologies is on a verge of coming up with an in-house designed and developed mwallet app called Payskp which will redefine the contours of mobile wallet application.

The app is built using a robust technology offering transactions both online and offline on its platform. The app is not only unique but one of its kind among the competition. The prime objective of Senrysa behind this innovation is to make customer’s life easier while making electronic payments safe and secure.