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Mission and Vision of the Club

The strategy and Consulting Club of IIM Amritsar is to promote the interest in strategy and consulting for the students of IIM Amritsar. It provides a platform where the students can hone their skills by organizing case study & quiz competitions, seminars and strategy simulation games which simulate the current issues faced by the industry. The club also organizes guest lectures on current trends of business strategies. Consultaire—Sept’2018 Stratagem has always envisioned to impart knowledge and encourage people to come together in pursuit of knowledge. First edition of this quarterly magazine with theme, Strategy in the world of Finance, realizes this very motive. Through this magazine we have tried to amalgamate thoughts of all dimensions. Whether be it from campus or corporate. Students from many colleges participated to be a part of this endeavour and best three articles were selected. This magazine features two corporate articles that in itself is a point of differentiation. Readers who come up with solutions to the crosswords at the back will be featured in next issue. Coming editions will discuss role of strategy in world of Operations, HR and Marketing.

| Foreword-Prof. Anita Sharma ——————————————————— 01

Digital Market in Financial Era—Pritam Banerjee ——————————————————— 02

Defining Zero Budgeting—Sridhar Mandapaka ——————————————————— 06

Why Bit coin in becoming a real Player? Madhumitha K ——————————————————— 10

A report on Banking Woes—Himavanth K ——————————————————— 12

Is Fintech a Hoax or are they here to Change Centuries Old Landscape ? Yasha Dabas ——————————————————— 13

Crosswords ——————————————————— 15

Our Team

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Prof. Anita Sharma, IIM Amritsar

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In a fast-changing global economy, there is an increasing need to understand how decisions are made, how strategy emerges in an organization in practice, who gets involved in strategy processes and how strategy changes over time. It is more and more important to bring together varying perspectives of strategy and its relationship with finance, human resource and marketing. The emerging interests in the practice perspective of strategic management during the past decade makes it particularly interesting for us to reflect on the intersections between the process and practice perspective of strategic management. It is my pleasure to welcome you to Consultaire, the magazine of exemplary writing by students enrolled in various prestigious B -schools of India. This is IIM Amritsar’s first edition of Consultaire and the pieces featured in this edition captures articles from the domain of finance and strategy. Stratagem team worked tirelessly to make this edition a reality. My gratitude goes to students and professors who served on the committee to choose what would be published in this edition. I would like to thank Personnel from different banks for taking time to provide insights that would surely give another dimension to thinking. Finally Congratulations to students whose work was selected. They can be justifiably proud of having their work chosen for publication and we are happy to acknowledge their achievement. And now I invite you to read their writings in consultaire’sept’2018 issue. I very much hope you enjoy this magazine issue.


| Student Viewpoint |

Consultaire | Sept’2018

Financial Market in Digital Era Pritam Banerjee, VGSoM IIT Kharagpur

Imagine the scene of stock exchange robbery in “The Dark Knight Rises” – hundreds held hostage and billions of dollars robbed in broad daylight. This plot epitomises the impact of a weak link in the chain of financial services and underscores the need for a secure and robust system for obscuring the possibility of financial debacles. FinTech, the technology that is disrupting the status quo, is driving efficiency and enabling innovation in the financial markets. This enabler is built around the primary themes of convergence of other industries into financial services, and a transformative journey which involves leveraging of disruptive ideas like the Internet of Things (IoT) and blockchain technology.

physical and observational data to create opportunities in better understanding the creditworthiness of customers. The ability to continuously monitor asset conditions with the help of sensor nodes mounted on physical items will allow banks to project timely lending services. With Barclays opting for smart piggy bank services, it is evident that IoT enabled services will be used by the leading banks to attract the young audience by making them understand the value of money in a cashless society. The launch of pay bands in the form of smart wearables further underlines the growing impact of IoT as an alternative option to facilitate contactless payment systems. IoT also promises to change the way how the insurance sector functions, by enabling continuous engagement and positive relation-

ship between the policyholders and the insurance company. With the use of IoT, the focus is shifting from a restitution-based insurance policy to a preventative one, by using real-time data to mitigate risks. The availability of granular data will lead to the unbundling of insurance offerings to focus more on need-based insurance at a reduced premium. Beyond personal insurance coverage, the commercial insurance sector also stands to gain from IoT implementation, permitting the providers to gauge uncertainties in real-time. The use case of IoT implementation in the asset and wealth management industry, as well as capital market, is showing a strong positive trend with clients demanding enhanced digital experience in terms of transparency and

IoT in Financial Markets In this context, technologydriven by sensors and web, collectively termed as the IoT, has been the front-runner in changing the landscape by disrupting the very way of conducting business, accounting for nearly 28.5% revenue growth. With IoT expected to enable nearly $11 trillion economic growth, its applicability in the financial market is no longer a sci-fi abstract. With the early signs already there with IoT in banking, the key interest lies in how the banks leverage the availability of the huge volume of

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| Student Viewpoint |

and access, beyond the simple features, functions and tools. Analysis of investment patterns based on data encompassing one’s action and inclination collected through the IoT network is a primary example of how portfolio managers can leverage the power of digitalization to offer customised experience around data. Keeping up with the trend of mobility – the modern mantra in wealth management to develop new channels for enhanced customer relationship, retention and potential profitability – firms are making use of the live data flow to automate fund allocation based on risk resilient models.

“With the use of IoT, the focus is shifting from a restitution-based insurance policy to a preventative one.” Machine learning algorithm running on real-time data collected over the sensor nodes is also promising to open up new avenues in the capital markets, with better prediction of the dynamic market behaviour, thereby enabling the formulation of comprehensive trading strategy devoid of human intervention. The real estate sector also stands to benefit from the IoT implementation, as it enables factual and transparent property valuation and easier

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Consultaire | Sept’2018

transaction proceedings. Furthermore, it is the internal risk management within the financial institutes which can be better handled using IoT solutions, allowing to continuously monitor the vulnerable operational issues that can eventually lead to fraudulent activities or lacklustre performance from employees. According to PwC Global FinTech Survey 2016, 56% managers have already identified the relevance of blockchain technology in the financial spectrum. The blockchain in simple terms is a ledger that is distributed on several nodes. The system has no central authority, instead, it is a shared record of transactions distributed over a vast network of users. This distributed ledger has brought about a fundamental evolution in trust management

among interacting parties, ranging from clearing houses to trading houses, settlement centres to the provision of tax receipts made through government. The biggest gain in terms of financial uses of blockchain that has kept the large banks excited is maintaining track of trades, in bonds or stocks, and making sure that payments are made properly – eventually leading to the abolishment of the current complex process involving banks, traders, exchangers and clearing houses and making sure that blockchain is used to log ownership data to get the work done in minutes. This use case is expected to save banks $20bn. per year, as it promises to free up huge fund currently tied up waiting for trades to be processed, and even streamline cross-border remittance by 2-3%.


| Student Viewpoint |

Consultaire | Sept’2018

like Canada set to try out digital currency, block-chain technology showcases a wide prospect in transforming the financial business models. AI financial Market

Blockchain technology will capable of automatically bargainalso lead to reduced risk in this sector, ensuring easy traceability of transactions, which in turn enhances real-time accolade and reward management for banking and insurance industry through a 24*7 feedback mechanism. The system of distributed ledger also promises to significantly reduce online fraudulent activities which cripple 45% of financial agents yearly. The blockchain architecture consisting of series of data blocks, each recording a batch of transaction, electronically chained together through advanced cryptography, makes it particularly robust against hacking attempts. This disruptive technology is also capable of cutting down on compliance cost, as it eases up the online identification process, allowing the reiterative use of verified data. The insurance sector will also be positively impacted by the blockchain technology, through a shift towards digital contracts running on the de-centralised ledger network. These smart records are

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ing and implementing statutory specifications, and thereby speed up the claim settlement process between the involved parties without mediator intervention. (With NASDAQ venturing into this disruptive technology, it is clear that blockchain will redefine trading experience and the capital markets. Riding on the success of enhanced trade efficiency, the cryptocurrencies powered by blockchain technology is turning out to be an exclusive crowd funding instrument. Moreover, the capabilities ranging from a decentralised stock exchange to the eradication of brokerage service, increased scalability to an augmented performance by tackling redundancy is greatly propelling share dealings. Another promising use case of blockchain technology is the advent of crypto-currencies. The bitcoin block-chain, operated by bitcoin miners who organise and secure a tiny fraction of bitcoin transactions into the block-chain, is leading a currency revolution across the globe. With countries

Robotic Process Automation will reduce the manual paperwork catapulting customer delight through a faster turnaround of financial services. This will also change the pattern of employment in the industry as tedious clerical work would lose human dependency.

“Not only will Machine Learning impact the simpler jobs in the financial sector, it obtains the capacity to replace partially, if not totally, the advisory roles of financial consultants.�


| Student Viewpoint | Robo-advisor uses ML algorithms for portfolio management tailored to client’s needs. HDFC Bank uses its chat-bot, Eva, not only to make life easier for its employees, but also for providing seamless service to all its customers enhancing loyalty and advocacy. The launch of “Thought Factory” by Axis Bank which is aimed to innovate AI solutions for banking operations underscores the degree of influence of technology in this industry.

Consultaire | Sept’2018 ther proliferation of this asset will be the algorithms developed in devising trading signals for making investment decisions. Although a double-edged sword at times, this technology can only improve for the betterment in the future. The usage of AI for credit risk analysis and customer churning forecast have released newer avenues of operation in the financial arena. Financial Adoption of AI and Machine Learning

The magic of AI is also being A further modification of the utilized for performing sentiment analysis using the social media outlet to enable the financial services including high-frequency trading and hedge funds. A fur-

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tools may lead to bots as relationship managers and advisors on matters related to taxation and retirement. It has also been claimed that bots, trained in mar-

ket pattern study, may contribute to about 80% of the daily stock trading amount by buying and selling stocks in nanoseconds. Industry 4.0 is here, and the greatest leap in advancement will be in the field of FinTech. Yes, money still cannot be planted in fields, but certainly, money can be motioned through sound investment for improved velocity and accelerated growth. The progress of the financial sector is indispensable for overall economic growth. Considering the path of progress chartered on the wheels of technology, we can certainly be hopeful for a fruitful ride.


| Student Viewpoint |

Consultaire | Sept’2018

Defining Zero Based Budgeting Sridhar Mandapaka IIM Shillong

The word zero in Zero-based budgeting (ZBB) signifies that everything starts afresh from zero. It signifies that all budget requests should be considered freshly for every year with cost -benefit analysis. It essentially means, every expenditure that is included in the accounting books of the company should be justified and the last fiscal year budget is of no significance in the preparation of the current fiscal budget. Under zero-based budgeting, managers must justify all their budgeted expenditures. ZBB is against the common approach of only requiring an explanation for incremental changes to the budget from the previous year. Post the 2008 financial crisis; The ZBB is back in the limelight. Many public and private sectors are increasingly shifting towards ZBB. Fiscal constraints and increased public scrutiny are considered as the main reason why organizations are shifting towards ZBB. As many business leaders say, right accounting leads to right costing and ultimately helps in determining the right pricing and right outcomes, keeping the costs in control by implementing effective measures

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like ZBB is the path that many organizations and government entities are choosing. Advantages of ZBB 1- If implemented, the firms can know the areas where the money is spent and can be used to check if the specified objective of the expenditure is achieved or not.

“ZBB is against the common approach of only requiring an explanation for incremental changes to the budget from the previous year.� 2- It brings in accountability, cost-effectiveness, better decision making and more importantly, it focuses on the objectives that the firms plan to achieve. 3-ZBB helps in better allocation and shifting of resources to strategically important and high priority projects.

stantly come up with effective budget plans, government and the other think tank organizations in India will figure out innovative ways to come up with effective ways of dealing with expenditures. 5-It Identifies the non-core activities of the firm and helps in decisions related to outsourcing. 6-ZBB helps policymakers to achieve more cost-effective delivery of public services. The best part is that ZBB is just another approach and there is no fixed set of procedures to be followed. Hence the organizations have the privilege to customize their approach according to their specific needs and objectives.

ZBB was developed by Peter Phyrr at Texas instruments in 1969 to deal with fiscal stresses.

4-Out of need arises innovation. And with the need to con-


| Student Viewpoint |

Consultaire | Sept’2018

Disadvantages of ZBB 1- ZBB is a time-consuming process and requires a lot of resources to carry out. 2- Implementation of ZBB requires specific technical expertise and to train the employees to gain that skill is a significant cost in itself. 3- It is not suitable for organizations which operates in the premium segment of the consumer market. For these organizations that depend on high levels of service to maintain brand and premium pricing, implementing a cost-restrictive approach could result in a significant revenue loss. 4- Implementation of ZBB in legacy organizations may be a potential threat to its culture. Past Experimentation In Government Organizations 1-. In India, the origins of ZBB can be traced to 1983 when the Department of Science and Technology first implemented it. The Maharashtra government also tried its hand in ZBB during the 1980’s. However, not much progress has been observed in this accounting system due to various reasons better known to the state departments involved. 2- The Andhra Pradesh Government first implemented ZBB during 1999-00 under the tenure of Shri Chandra Babu Naidu. The objective that

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the government planned to achieve is fiscal discipline in all the state governments’ annual budget. The AP Government considered implementing it again in the financial year 20112012 but dropped out as most of the government organizations under the state already finalized their budget projections for the next fiscal year .

accounting in the organization in ZBB in the next few years . In Multinational Companies

1. Mondelez which owns milliondollar brands like Oreo, Cadbury, etc. contemplated the benefits of implementing the ZBB. With the help of Accenture, a leading player in the consulting domain, Mondelez saw itself transform into 3- The Indian Railways shifted to an organization where now the ZBB for the financial year 2016- culture is to justify the costs in17 after Shri Suresh Prabhu took curred in the accounting. charge as the Railway Minister. In 2-Companies like Kraft the presented railway budget, He Heinz, Unilever, Kellogg’s, said: “Each rupee that gets exetc. have achieved cost- effecpensed will be re-examined to ensure optimal productivity,” The tiveness in their expenditures and railway ministry envisions to com- achieved significant growth rate plete the transition of the entire over the past decade-


| Student Viewpoint |

Consultaire | Sept’2018

help of Accenture, a leading player in the consulting domain, Mondelez saw itself transform into an organization where now the culture is to justify the costs incurred in the accounting 2- An organization which is spending public money should be more compelled to implement ZBB. It is prerogative of the citizens to know where and how effectively their money is being spent. 3- A change in budgeting method will also help in changing the culture and mindset of the organization to achieve continuous improvement. Bringing in such accountability into the system will help in reducing the corruption which is plaguing the Indian bureaucracy since ages. 4-The main disadvantage attributed to ZBB is the high workforce requirement and the time-consuming procedures to be followed year after year. But, with the advent of digital tools which eases the procedures to implement, this disadvantage can be significantly reduced. With changing times and demographics, people are expecting faster decision making and implementing ZBB brings that to the table. 5- With the volatile, uncertain, complex and ambiguous world, organizations and governments should not give any room for

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error. They should know where their money is going into and what is the output for the expenditure which they incurred.

“An or ga n iz a t ion which is spending public money should be more compelled to implement ZBB. It is prerogative of the citizens to know where and how effectively their money is being spent.” Possible Criticism if Implemented 1- It’s been 71 years since India got independence and there are hardly any years when the

government downsized the budget. So, it can be inferred that government is reluctant to downsize the budget when populist policy decisions are committed year after year to woo the public. 2-The question of feasibility and relevance of ZBB arises as most of the budgeted expenditure goes under the overhead of non-planned expenditure. It includes salaries to be paid, interest costs, pension costs, etc. 3- The question of feasibility and relevance of ZBB arises as most of the budgeted expenditure goes under the overhead of non-planned expenditure. It includes salaries to be


| Student Viewpoint |

paid, interest costs, pension costs, etc. 4- Increased costs and scrutiny due to the implementation of ZBB may result in the backlash from the executives of the Indian constitution (bureaucrats) as they will feel harassed if their every decision is questioned by the legislative. 5- The current public-sector culture in India does not have suitable conditions and commitment needed to implement the ZBB accounting. A sudden change in organizational culture may not be welcome by some section of the employees and public.

Consultaire | Sept’2018

6- Due to the complex nature involved in formulating and executing the ZBB approach, if any delay is caused in preparing the ZBB within the specific timeline, it may lead to severe criticism 7- Prioritizing each program may be threating to the government and executives alike. Exclusion of any program will raise severe questions from the public The Indian Executive is already under equipped, be it in terms of monetary or human resources. The implementation of ZBB will require both extra time and resources which the government organizations do not have.

Conclusion With an increasing trend of bloating up the budget sheets by the forceful inclusion of populist measures which have no specific agenda or need to satisfy, introducing the ZBB and accounting for every hard -earned penny of the taxpayer is the need of the hour in a developing nation like India. Public perception of a government - which can implement ZBB and bring accountability and transparency into the system - changes for the better. . But the real challenge lies in effectively communicating the value that ZBB bought in.

Misconception related to Zero Based Budgeting: idea that zero-based budgeting is just starting your budget from a zero sum. 

 

Using zero-based budgeting is cutting a budget to ribbons. Zero-based budgeting can bog down a business and stop it from doing anything else. Zero-based budgeting only focuses on Selling, General, and Administrative Costs (SG&A) Zero-based budgeting was not created for growth oriented companies.

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| Student Viewpoint |

Consultaire | Sept’2018

WHY BITCOIN IS BECOMING A REAL PLAYER? Madhumitha Kulkarni Welingkar Institute of Management Development and Research, Mumbai Me: We need to go back, Marty! Marty: To save the world??? Me: No to buy BITCOINS! As quoted by Jay Greene, “If it Matters, it produces Controversy”. And Bitcoins is one of the great examples resembling this quote. Be it an aid to the black market or scamming users out of millions, Bitcoins make to the headline every other day. A Pandora’s Box in the world of cryptocurrency indeed! The domain name came into being in 2008 in the month of August as “”. Satoshi Nakamoto an unknown identity yet, published a paper titled “Bitcoin: A Peer – to – Peer Electronic Cash System‟ in November 2008 which seeded Bitcoin’s existence.

timestamp mechanism which eventually generates proof in the chronological order of the transaction being performed. • Transactions are verified by network nodes via cryptography and • Recorded in a public distributed ledger called a Blockchain. It records all the Bitcoin transactions. Each block created in the Blockchain contains a hash of the previous block up to the previous block of the chain. • Functions as per the demands and supply scale of economies. The money system has evolved over the years from non – monetary exchange i.e. the barter system to the emergence of money as the products from livestock

and plants. From standardized coins to banknotes, demand deposits and trade bills of exchange. The system has evolved to an extent of the emergence of cryptography i.e. Cryptocurrencies. Nakamoto proposed the protocol to solve the hindrance caused due to double spending by avoiding third -party mediation.

“A decentralized

system which doesn't involve either a central bank or an individual administrator.”

Bitcoin, a form of electronic cash edged the concept of cryptocurrency. A decentralized system! A system which doesn't involve either a central bank or an individual administrator. • There aren't any intermediate’s. There’s no need of a trusted third party. • Sent from user to user on the peer-to-peer Bitcoin network directly, incorporating

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| Student Viewpoint |


Ease of Use

Consultaire | Sept’2018

Taxation Free


Rapid Growth

Transaction Fees Payment

“Safer than

Digital is the


The World Bank”. Fully encrypted.

way to go. Ease in online payments. Acceptance by Paypal.

Government Intervention, which makes it tax free.

Bitcoin has become a de facto standard in the world of cryptocurrencies. The currencies inspired by Bitcoins are known as Altcoins. Below are the six major cryptocurrencies other than Bitcoin: 1. Litecoin(LTC) • Referred to as the “Silver to Bitcoin’s Gold” • Open source global pay ment network • Faster Block Generation Rate • Better Transaction Confir -mation speed. 2. Ethereum (ETH) • A decentralized software platform • Enables Smart Contracts and Distributed Applica -tions to be built and run • Without any fraud, inter fere ence, etc. from a third party. 3. Zcash (ZEC)

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Gateways are avoided.

• It’s referred to as, “If Bitcoin is HTTP, Zcash is HTTPS”

Payments can be Reversed

Bitcoins are

Reversal of

being intepayments in grated by case of fraud many other detection. The online sites. whole amount Also a medican be um of investcredited back. ment for a few users. • Untraceable Currency • Donation based and com munity driven.

• Offers privacy and selec tive transparency of trans actions

The table above shows the factors that enable the future existence of Bitcoins.

• Provision of extra secure ty privacy

Recently, Coinbase a USbased cryptocurrency exchange has decided to release a PayPal like service of its own. This will it make easier for the merchants to accept payments via Bitcoin, Litecoin and Ethereum through Coinbase Commerce.

• Details of sender, recipient or the amount remain pri vate 4. Dash (DASH) • Decentralized master code network • Stands for Digital Cash • A more secretive version of Bitcoin. 5. Ripple (XRP) • Real-time global settlement network • Instant, low-cost interna tional payments 6. Monero (XMR) • Secure • Private

A number of companies are accepting Bitcoins as a form of payment. Overstock, Expedia, Subway, PayPal, Shopify, Microsoft, and Pizza for coins are tfew companies which are encouraging Bitcoins. Considering market capitalization, user base and popularity bitcoin has been leading in the cryptocurrency world. Going by the current scenario, Cryptocurrencies are here to stay and more dominantly. Bitcoins! Better Buy and Invest.


| Student Viewpoint |

Consultaire | Sept’2018

A Report on Banking Woes Compiled by Himavanth Kothinti, IIM Amritsar The banking system has been through a lot in the last three years, from a huge pile of NPA’s to the digitization drive after demonetization and the apprehension about crypto-currency, one thing after another has been giving sleepless nights to the bankers. Attempts to solve one problem led to the creation of another. 2015-16 saw banks facing severe cash crunch due to the NPA’s and bad loans. The banks themselves were wary of lending credit. This in-turn was leading to an economic slowdown. Banks needed cash to extend loans to revive the economic activity. The solution – Demonetization. Underlying all the reasons which the government gave for demonetization , there was an unspoken strategy aiming for two things- oneto pumps cash back into banks, two-to reduce dependency on cash. What followed next precisely achieved these two targets. However all was not well yet, due to demonetization, there was a marked change in the financial behaviour of consumers. More people now tend to put their savings in mutual funds, stock markets and other financial instruments. Mr P.V.R.C Subrahmanyam of RBL Bank also agrees to the same. This was the first time that most of the Indians got introduced to mobile wallets and payment banks. As the number of users increase the competition between them also getting intensified. Both, the regular banks and Payment Banks are now worried about mobile wallets going for interoperability. There are security concerns and fear of losing customer base. Amid all this, there is also talk about the feasibility of using crypto-currency. As per the ET report on 30/08/2018, RBI has set up a panel to study the possibility of using crypto-currency due to

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the high costs related to paper money. However, many in the industry think that India is not yet ready for such a change. “It is not suitable for the Indian environment, if at all it happens it will be a really big challenge to banks”, says Mr. Subrahmanyam. Demonetization helped the country to temporarily tide over the NPA crisis by infusing cash into the system. But the real problem was not solved. The Gross NPA ratio increased from 5.12% in March 2015 to 11.6% in March 2018. In-spite of several regulations, Debt Recovery Tribunals and the newly formed IBC, we don’t see any improvement in the situation of NPA’s. Professionals are of the opinion that, IBC and NCLT will show results in the long run. More importantly, ethics has a role to play too. According to Mr. Subrahmanyam, morality level in people is coming down day by day. Whether it is Business community or lenders. However proper industry analysis, thorough monitoring, nonintervention of political leaders, corruption free society above all responsibility and accountability from both sides are essential factors for NPA reduction. Bankers do seem optimistic despite some of the debilitating issue on the door (some are already inside). Banks being the backbone of country’s economics doesn’t seem to be backing down so easily. About Mr. Subrahmanyam:

Mr. P.V.R.C Subrahmanyam, is currently working as a Senior Manager, Credit Administration Department at RBL Bank, Hyderabad. He has also served as the Joint Director for the National Institute of Rural Development and Panchayati Raj.


| Student Viewpoint |

Consultaire | Sept’2018

Is FinTech a hoax for the banking industry or they are here to change the centuries old landscape. Ms. Yasha Dabas, Standard Chartered What is a FinTech? Abbreviated as FinTech, all it means is Financial Technology which always existed in banks in one or the other form. This technology has traditionally been used to leverage software back-office functions, database management and transactions execution but now customers are less dependent on brick and mortar banks for their needs and rather using a multitude of digital channels at their disposal. Four to five years back technology was no longer considered as cost and liability to the financial institutions but they were yet not so serious about technology evolution within the banks & financial institutions due to the famous “too large to fail” assumptions. Not only technology giants such as Amazon and Google but new start-ups such as UBER, Alibaba, grab etc caused solid disruption in the financial industry. They provided 24x7 omni-channel for people to bank using their phones. Digitization has transformed the banking sector . Mobile payment revenue worldwide in 2015 was $ 450 billion and is expected to cross $1 trillion in 2019. The use of Smartphones has disrupted the way we used to do transactions and with help of intuitive apps, DIY modes are always preferred. Close to 40% of the world’s population will own a smartphone by 2021, up from a third of the global population in 2017.

“The bottom line is that if banks won’t change now, small tech start-ups will eat banking for breakfast.” It is apparent now that banks have realised that and are making changes in their landscapes to bring disruption through technology. For most banks, this means technology and people working in tandem.

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Banks like UBS Group AG and Goldman Sachs have already put an AI/ML-based solution in place. JP Morgan Chase was one among first banks to trust and invest into disruptive block-

chain technology, it’s collaboration with Digital Assets Holdings is a proof of the belief. Standard Chartered bank is part of the RIPPLE consortium that banks have formed in order to expedite the experimental block-chain possibilities. FinTech explosion in banks and financial institutions is happening through some major channels, to name a few: 

Open Innovation through exposed APIs

Setting up Accelerators/Innovation labs

Lean start-ups/agile-DevOps/Minimum viable product based thinking

What is the state of FinTech adoption in various countries? Regulators and security sector had shut the gates for the fintech disruption but those gates seem to be opening now with muchneeded realisation of how important it is to innovate banking technologies. Landscape in India is changing. Central government is encouraging financial institution’s as well as financial planning of the country keeping FinTech’s in mind. INDIA STACK is a beautiful program started by the Government of India to help fintech ventures.


| Student Viewpoint | STARTUP INDIA Program is another such program for entrepreneurs to help start building the disruptive innovations. It will be fair to say that the uncertainty that was there in the financial sector in relation to technology advancement, has dissolved. Increasingly banks and FIs are turning towards technology equipped banking or finance units. There is an open war between technology

Consultaire | Sept’2018 innovators like FANGS Netflix, Google, Spotify) BANKS on the other side. teresting space to not only of it.

(Facebook, Amazon, of the universe and This will be a very inwatch out but be part

About Ms. Yasha Dabas: Yasha Dabas is a transformation and innovation coach working in DevOps & Cloud enablement area of Standard Chartered Bank .Yasha is specialised in Agile-Devops, human design thinking, lean design and financial technology services. She is a Mechanical Engineer who has spent more than 14 years in financial IT services and is now involved in the intrapreneur programme of the innovation & ventures lab of the Standard Chartered bank to expedite the fintech journey of the bank. Hitherto SCB, Yasha has worked in the organisations such as JP Morgan Chase-Singapore, Nova Scotia Bank - Canada, Fidelity Investments etc.

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| Student Viewpoint |

Consultaire | Sept’2018

3 Winners will get featured in Next Edition of Consultaire

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Consultaire- Sept'2018  

Stratagem-The Strategy and Consulting Club of IIM Amritsar, presents first edition of club magazine with theme, " Role of strategy in the Wo...

Consultaire- Sept'2018  

Stratagem-The Strategy and Consulting Club of IIM Amritsar, presents first edition of club magazine with theme, " Role of strategy in the Wo...