3F: Future Fintech Framework

29/11/2024

A leading think tank has featured me as amongst the Top 50 Global Thought leaders in Fintech for 2024 (Rank 49 in Image below). They had featured me in 2022 too.

My recent post with details on the same: -

https://www.linkedin.com/posts/kartik-swaminathan-26598b3_fintech-innovation-digital-activity-7267471649971601408-z0tQ

17/09/2024

It was in Mar 2021 that I created and published the new age Digital Innovations framework viz. 3F: Future Fintech Framework.

Now its been over 3 yrs and the framework continues to Simply Understanding, foster Innovation and Accelerate Growth in Fintech.

Happy to share that "3F: Future Fintech Framework" was once again named one of the best new Fintech books by BookAuthority!

Stand out, get the 3F Edge to build innovative digital solutions and a culture of Innovation in your organization.

To benefit get hold of the framework or write to me at [email protected] for Innovations masterclass and consulting based on the framework.

https://bookauthority.org/books/new-fintech-books?t=5h6v1k&s=award&book=1637147236

01/01/2024

29/12/2023

We have seen increased usage of newer models incorporating alternate data, advanced models, analytics & AI in Fintech and Digital lending.

Now, the regulator RBI has cautioned banks & NBFC's against reliance on such models / algorithm based lending, thereby highlighting certain aspects of the same. These are: -

1. There can be undue risk build up arising out of information gaps that may exist in the model. This may lead to dilution of underlying standards.

2. The regulator emphasizes on need for audit of the models and maintaining some minimum Underwriting standards.

3. Need for mitigating biases and discriminating factors in algorithm.

4. Models must be regularly tested for their resilience.

5. On use of AI / ML, regulator has cautioned given the lack of transparency. It suggests that lenders must adopt ethical AI that can protect customer interest, promote transparency, security and privacy.

The Innovations framework viz. 3F: Future Fintech Framework talks about such measures with a need to strike a balance between Innovations & Regulations.



Read more here.

The regulator said inherent biases and lack of transparency with AI/ML outcomes carry risks

19/10/2023

It is very rare to see such strict and widespread action by a Bank against its employees, for wrongful practices by them, where they linked customers account numbers with unrelated mobile numbers, all to meet their targets for mobile banking app enrollments. This may appear to be a silly act by employees, but it is a serious breach that exposes customers to possibilities of frauds as also damaging the trust they place on their Banks.

While punitive actions are fine. The longterm and effective approach to tackle this lies in building awareness amongst employees and making them digitally native / savvy.

This is what 3F Edge workshops based on the new age Innovations framework viz. 3F: Future Fintech Framework aims to achieve. i.e. make your employees digitally savvy, to Ideate, create, colloborate whilst driving customer engagement, trust and being complaint & profitable.

While Bank Of Baroda initially denied the allegations, the RBI suspended it from onboarding customers on its digital banking app

10/10/2023

It appears that Fintech Industry players are in conversation with RBI on creation of Self Regulatory Organisation (SRO). SRO's are basically Non Governmental Organizations (NGO's) by composition.

SRO will focus on code of conduct, monitoring standards and overall infrastructure for the sector. It also serves as a bridge bewteen Industry and Regulatory.

SRO's ensure effective Regulatory implementation and also free up the regulators from day to day operational issue's. Probability of unscrupulous players and malpractices also reduces.

In fact, the Innovations framework viz. 3F: Future Fintech Framework suggest setting up of SRO's, given the challenges and complexities of the new digital age.

Happy Reading!

These industry players who are in conversation with the RBI on the matter said the SRO will focus on code of conduct and overall infrastructure for the sector.

06/10/2023

Monopolistic approach by many bigtechs, Fintech's / banks, ecom players is something we have all heard and even experienced.

In the article below, PayPal seems to be under scrutiny for its wrong practices, and may face regulatory action.

In recent past Google (GPay) had faced similar issues with regulatory scrutiny, given its practice of insisting on their own payment services for App in the app store. Here they charged an exorbitant fees, making many ecom activities on these apps financially / businesswise unviable.

We are going to see increased regulatory action on such practices. The Innovations framework 3F: Future Fintech Framework talks of many issues which regulators need to consider, given the challenges of new digital age.

Happy Reading!

PayPal has been hit with a class-action lawsuit accusing the firm of anticompetitive "anti-steering" rules that leave consumers paying excess charges.

26/09/2023

Watch this interesting interview with ex State Bank of India chief on how increased cost of compliance is creating challenges for banks, increasing risk scenarios, regulator proactiveness and the need to find a balance between compliance and innovation.

The new age Innovations framework viz. 3F: Future Fintech Framework, talks of exactly these aspects and much more, which Regulators and BFSI firms need to take care of, in the digital world.

Looks like they have read the framework, have you?

Happy Watching and Reading!

In an exclusive interview with ETBFSI, Rajnish Kumar, Chairman, MDI & Former Chairman, SBI spoke on how the banking sector has shifted from challenging times ..

22/09/2023

Ola Money, the Financial Services arm of Ola, has posted profits and shown very good growth in revenues too during Financial Year Ending Mar 2022.

Ola Money currently has three products – Ola Money Postpaid, Ola Money Credit Card, and OlaMoney Wallet.

It generates revenue mostly through commission income from various merchants on utilisation of Ola Wallet money by their customers towards purchase of goods and services. Besides, Ola Money also generates revenue through insurance commission from sale of insurance products/policies as corporate agents.

It's important to note that Ola Financial Services acquired neobank Avail Finance in FY23 and its performance will be reflected in its financial statements for FY23. Source: - Inc42

This is a good sign of how embedding Financial Services / solutions, will help drive better engagement, adding to revenues & profitability for Ecom / Digital firms. The new age Innovations framework viz. 3F: Future Fintech Framework, enables creation of such engaging, secure, compliant, rewarding and profitable value propositions / solutions, involving Ecom / digital firms and Fintech's.

20/09/2023

Sharing an interesting survey report by Weavr.io on UK Banking & Embedded Finance. The report has some simple definitions about embedded finance, provides insights / basic questions related to the same (based on responses of Banking Executives). These are: -

1. Is embedded finance considered an opportunity?
2. Are financial institutions actively working on embedded finance?
3. Who is talking about embedded finance?
4. Do people tend to talk about BaaS more than embedded finance?
5. Is embedded finance synonymous with BaaS?
6. Defining embedded finance from the point of view of embedders
7. Defining embedded finance from the point of view of banks
8. Fintech industry experts on embedded finance definitions
9. Do banks have clear action plans for embedded finance?
10. Rating embedded finance cost and risk concerns
11. Rating areas of uncertainty about embedded finance

Remember, Embedded Finance is about placing of a financial product in a non-financial customer experience, journey, or platform. Increasingly, that is how financial products are being consumed, and banks are gearing up to create solutions accordingly.

So, today it is all about how you compose customer experiences / journeys and that is where the Innovations framework viz. 3F: Future Fintech Framework helps. It provides us with a thought process / approach to create journeys that are not only engaging, but also secure, compliant, rewarding & profitable. It will helps banks and digital companies / apps (Embedding Financial Products) to have a component based approach to the whole journey, making them digitally native in their approach and helping them to collaborate and grow.

Happy Reading!



Clock here to access report - https://www.linkedin.com/posts/kartik-swaminathan-26598b3_weavr-embedded-finance-survey-activity-7110178940811382784-OTlW/

11/09/2023

Recent product launches by National Payments Corporation Of India (NPCI) during Global Fintech Fest 2023 were interesting. These are: -

1. Credit Line on UPI - Parametarisable pre sanctioned credit line, which can now be given by Banks on UPI. This will revolutionize credit.

2. UPI LITE X - NFC based UPI transaction facility, which works even in areas with poor connectivity.

3. Tap & Pay - Through NFC enabled QR Codes at merchant locations.

4. Hello! UPI - Conversational Payments on UPI.

5. BillPay Connect - Conversational Bill Payments.

Note: - for both Conversational payment based products (4 & 5 abovr), NPCI has partnered with AI4Bharat and IIT Madras (Bhashini Program) to co develop Hindi and English Language Models. It will also soon be made available in other Indian Languages.

Remember last year in GFF 2022, NPCI had launched Cross Border Bill Payments by NRI's, enabled foreigners visiting India with UPI, enabled Rupay Credit Cards on UPI & UPI 123Pay offline payments for feature phones.

Happy Reading!

At the Global Fintech Fest 2023, RBI Governor Shaktikanta Das launched key products of NPCI that enables conversational payments over UPI, tap and pay, as well as, credit line for which it has partnered with key banks. Here are the details:

09/09/2023

GFF 2023, Mumbai was a wonderful event that highlighted the tremendous growth, opportunity & Innovation that FinTech's present for India and globally. Sharing some highlights, insights, experiences and observations as below: -

1. It was a Great opportunity for networking with various players in the ecosystem including Innovators, Industry leaders, regulators, government agencies. Not to mention the overwhelming sea of people adding to the festive spirit. Could meet many of them while catching up with acquaintances, friends and old colleagues.

2. Lots of insights & learnings across interactive sessions.

3. Industry leaders were quite clear and direct with their advice and directives. Some of them as below: -
- RBI Guv asked Fintech's to focus on customer centricity, governance & Self Regulation (to form SRO's)
- IFSCA Chief spoke on disruptive innovation by FinTech's and how it is keeping regulators on their toes.
- IRDAI Chief spoke on Insurance 2.0 - Viz. More players, flexible & Customizable DIY Products, which are easily accessible, improved customer service, effective use of technology etc.
- Banking legend Shri. K.V. Kamath spoke on how we can be a USD 25 Trillion economy by 2047 and need for banks to be flexible, quick and think innovatively (not the old ways).

4. In many discussions / approaches of Banks, Card Companies and Credit Bureaus were under scrutiny.

5. Some were overwhelmed by the focus on Just payments (largely UPI) & lending. Am sure that in next year's event, we will see more representation across other segments.

6. Heartening to note was the great presence of various countries and Innovation Departments of various Indian State's.

Many aspects, trends and themes discussed during the event, were in line with the new age innovations framework viz. 3F: Future Fintech Framework.

Finally, the overall event was very well organized by Internet and Mobile Association of India. Though there can be improvements in areas like markers & directions in the event venue, better & more feature rich event App.

Happy to hear your learnings, experiences & insights.