Aadhaar – The “Money” of the Future
Mr. Nandan Nilkeni is one of the founder members of Infosys. The concept of Aadhaar is his brainchild. He has made a presentation on Aadhaar-linked cell phones. It is remarkable how this will revolutionise the markets in general and financial markets in particular in India and the rest of the World. This 30-minute presentation will leave you spellbound! Mr. Nilekani has envisioned how technology is going to change the way we have lived in this world for decades. Major highlights of the presentation are as under:
- There will be a massive disruption in financial services on the back of technology revolution.
- The telecom revolution has transformed the desktop based environment to mobile internet based environment.
- “WhatsApp Movement” is the concept to understand. Today, 30 Billion messages are passed through WhatsApp in the world everyday, surpassing the SMS by a large margin. This WhatsApp movement like revolution is going to take place in the world of finance making the concept of traditional banking and lending disappear.
- We are moving from cash based society to cashless and digital society very quickly. Today, India has over 900 million (90 Crore) mobile users, which is a record in itself. The Aadhaar, when linked with the mobile, set with IRIS authentication ON will change the world we live in.
- Today electronic clearing service, NEFT-RTGS and IMPS have overtaken traditional payment system. With these 90 Crore mobile users, a mega trend is underway, which we are unable to comprehend. To put it in simple words, every mobile user will be an ATM.
- When IRIS authentication (Biometric authentication linked with Aadhaar server) will be on, the 90 Crore mobile users will be able to have online KYC, online authentication, online payment and online receipt on the basis of Unified Payment Interface (UPI).
- Smartphones will replace all types of debit and credit cards and PayTM like systems will be fully operational. Physical cash to digital cash and digital cash to physical cash convertibility will be a game changer. Digital wallets and digital lockers will revolutionise the security system.
- Enabling peer-to-peer payment system will do away with many intermediaries and will be reimagining the infrastructure we have at present.
- The whole process will lead to an explosion of innovation, death of many businesses and birth of new ventures and business.
- India will become data scare to data-rich country in five years in both, on consumer and business side.
- Credit process and credit appraisal will become obsolete and online loan payment will become possible. Think of 90 Crore people coming on one commong platform and remain connected! Almost all functions of the bank, government and taxation department will be done by Aadhaar linked phones.
- This is even more important in the sense that IRIS authentication on cell phone is available only in India, no one has this system in the world! This is not far away because the IRIS authentication on cell phone has started practically and will become a mass reality soon.
So, prepare yourself to live in the digitalized India with absolute transparency, no paperwork, no bureaucratic intervention, no tax terrorism and much much more.
Watch the video “Disruption in Financial Services: Nandan Nilekani at TiE LeapFrog” here (via. YouTube):