Name of Student Ankita Baburao Nighut

Class S Y MBA -B
Subject Elements of Fintech Case 1,2,3 and
Assignment
Roll no. 63

Case 1: Banking and Fintech Embraced with IOT Device

Banking, finance and insurance companies are easily embraced with IOT devices. The
banking and financial sectors create a new way of collecting the valuable information
about the customer through IOT sensor devices using smartphones. When compared
to present financial technology, Fintech is similar to electric car innovation in that it
deals with capital valuation, trade, investment, and asset valuation, as well as providing new
accounting methods. Hundreds of millions of datasets are handled by financial engineers. It is
difficult for them to keep track of all the information. Most banking and financial industries
can increase their e-commerce quickly by linking cloud business through profitable business
techniques, where the cloud is kept with a large amount of consumer data.
In recent years, all banks have communicated with customers via smart phones, social
networks, and any new sensors, resulting in the creation of new sectors in financial
technology. Established financial organizations have been pushed to absorb new financial
technology that has been welcomed with the internet of things in recent years. A variety of
enterprises have been impacted by financial investments. Through the internet of services,
which links people and ideas, Fin Tech may deliver a new set of tools and products to
developing businesses.
A rising number of firms are using the Internet of Things to create new value in
today's society. All banks have communicated with their clients through smart phones, social
media, and any new sensors, resulting in the emergence of new financial technology
industries. The administrators of today's money-related organizations in direct society are
terrible at budgetary innovation. To achieve social innovation, new invention is used.

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Case 2: ANALYSIS OF FINTECH MOBILE APP USABILITY FOR GERIATRIC
USERS IN INDIA
➢ FinTech has become a metaphor for disruptive technologies which offer financial
services like payments, loans, money transfers, fundraising, asset management and other
banking services, mostly on mobile platforms.
➢ The case study gives the recommendations to the existing FinTech mobile app
producers so as to increase the usability of their app among geriatric population:
➢ Load the geriatric mode based on the age group shared by the user while registering the
user account.
➢ Supply a tooltip against an input field.
➢ Provide an inbuilt zoom-in and zoom-out feature using hand gestures.
➢ Set a stand still page as a safe exit for the geriatric users whenever there is an issue with
connectivity, speed, performance or timeout.
➢ Replace next button with swipe-based touch event to complete a step-by-step task.
➢ Have a recommender to add beneficiaries based on phone contacts. There should be a
mapping between mobile phone contacts and beneficiary account number.
➢ Provide a user session timeline.
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Case 3: THE DYNAMIC RELATIONSHIP BETWEEN FINTECH AND SOCIAL
DISTANCING UNDER COVID-19 PANDEMIC: DIGITAL PAYMENTS EVIDENCE

Technology and innovation put its fingers in the financial services, FinTech has been
conceived, as a major trend of financial innovation. FinTech firms are facing the COVID-19
challenge. FinTech entities may be obliged to re-examine their mission and business models
after COVID-19. A prominent question is how to leverage both existing and newly developed
assets to capture new opportunities in the coming decades.

According to World Bank, there seven types of responses for the provision of payment
services during the COVID-19 crisis, as follows: Changes to KYC and authentication
requirements, Promoting and ensuring availability of digital payment mechanisms, Consumer
protection measures and ensuring availability and acceptance of cash, Changes to Cyber
security, MI risk management, Cash usage restrictions. Relaxation of Compliance
requirements.

Kruskal-Walli’s test has been used to examine the significance of variation among
social distancing and digital payments measured by transactions’ volumes and values. Results
indicate that social distancing has a significant effect on digital payments measured by
transactions’ volumes, with R2 of 0.8883 at a significance level of 0.01.

Case Recommends the regulatory authorities to respond quickly to the requirements for
the stability of the financial system.

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Assigment EoF:Fintech Company-Paytm

Source: https://in.images.search.yaho.com

Paytm is India's biggest versatile instalments, e-wallet, and business stage. Even
though it began as an energizing stage in 2010, Paytm has changed its plan of action to
become a commercial center and a virtual bank model. It is likewise one of the pioneers of
the cashback plan of action. Paytm has changed itself into an Indian mammoth managing
versatile instalments, banking administrations, commercial center, Paytm gold, energize and
charge instalments, Paytm wallet and many other provisions which serve around 100 million
enlisted clients. Paytm is accessible in 11 Indian dialects and offers online use-cases as
versatile energizes, service charge instalments, travel, motion pictures, and occasions
appointments.
In-store instalments at markets, leafy foods shops, cafés, stopping, tolls, drug
stores and instructive establishments can be accessed through the Paytm QR code. One 97
Communications, the parent company of Paytm, is all set to raise its capital target of over
₹16,600 crores through an IPO that it had filed earlier in July 2021. Paytm is seeking to
raise $25 billion to $30 billion valuation post this IPO.According to the organization, more
than 7 million traders crosswise over India utilize its QR code to acknowledge instalments
straightforwardly into their bank account. The organization uses commercials and pays a
special substance to produce income.

1.Financial Statements and Records of Company:

Income Statements:

Particulars 3/31/2021 3/31/2020 3/31/2019

Total Sales (or Revenue) 28,013 32,787 32,241

Cost of Goods Sold (COGS) 39,866 44,353 39,859

including Depreciation and Amortization
Gross Income -11,853 -11,566 -7,618
SG&A Excluding Other 6,940 15,998 36,434
Other Operating Expense 592 464 450
EBIT (Operating Income) -19,385 -28,028 -44,502
Non-Operating Income (Expense) 2,893 1,084 1,631
Interest Expense 377 536 374
Unusual Expense -626 1,542 -778
Pre-tax Income -16,243 -29,022 -42,467
Income Taxes 27 -158 -65

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 Equity in Earnings of Affiliates -740 -560 146
Income
Other After-Tax Adjustments - - -
Consolidated Net Income -17,010 -29,424 -42,256
Minority Interest Expense -49 -1,002 -493
Net Income from Continuing -16,961 -28,422 -41,763
Operations
Preferred Dividends - - -
Net Income Available to Common -16,961 -28,422 -41,816
EPS (Recurring) -28.9 -46.96 -75.53
EPS - Basic - Before Extraordinaries -28.17 -48.81 -74.55
EPS (Diluted) -28.17 -48.81 -74.55
EBITDA -17,600 -26,283 -43,386
Stock Option Compensation Expense 787.5 1,162.70 1,082.20
Operating Lease Expense 92 148 128
Balance Sheet:

Particulars 3/31/2021 3/31/2020 3/31/2019

Cash & Short-Term Investments 30,236 37,296 29,592
Short Term Receivables 35,338 18,992 26,779
Inventories - - -
Other Current Assets 8,424 8,069 10,338
Total Current Assets 73,998 64,357 66,709
Net Property, Plant & Equipment 4,662 5,474 5,283
Total Investments and Advances 5,164 19,023 3,543
Long-Term Note Receivable 1,365 7,758 2,415
Intangible Assets 666 661 3,707
Deferred Tax Assets 35 147 478
Other Assets 5,623 5,726 5,981
Total Assets 91,513 1,03,146 88,116

Short Term Debt (including Current 5,693 2,459 7,285

Portion of Long-Term Debt)
Accounts Payable 6,052 6,116 7,360
Income Tax Payable 8 24 8
Other Current Liabilities 9,799 8,061 12,566
Total Current Liabilities 21,552 16,660 27,219
Long Term Debt 427 1,822 2,038
Provision for Risks Charges 247 203 115
Deferred Tax Liabilities 6 126 633
Other Liabilities 4,119 3,423 -
Total Liabilities 26,351 22,234 30,005
Non-Equity Reserves - - -
Preferred Stock - Carrying Value - - -
Common Equity 65,348 81,052 57,249
Total Shareholders’ Equity 65,348 81,052 57,249

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 Accumulated Minority Interest -186 -140 862
Total Equity 65,162 80,912 58,111
Total Liabilities & Stockholders’ 91,513 1,03,146 88,116
Equity
Book Value Per Share 107.94 133.88 94.57
Tangible Book Value Per Share 106.84 132.79 88.44
3.Cash Flow

Particulars 3/31/2021 3/31/2020 3/31/2019

Net Income (Starting Line) -16,983 -29,582 -42,321
Depreciation 1,785 1,745 1,116
Deferred Taxes & Investment Tax - - -
Credit
Investment Tax Credits - - -
Other Funds (Non-Cash) 1,886 3,914 -1,909
Funds from Operations -13,312 -23,923 -43,114
Extraordinary Item - - -
Changes in Working Capital -6,902 68 -1,323
Income Taxes Payable - - -
Net Operating Cash Flow -20,214 -23,855 -44,437
Capital Expenditures -1,927 -1,907 -1,773
Net Assets from Acquisitions -63 -80 -383
Sale of Fixed Assets and Businesses 56 41 363
Purchase or Sale of Investments 21,822 -21,000 22,640
Purchase of Investments -89,089 -95,487 -35,743
Sale Or Maturity of Investments 1,10,911 74,487 58,383
Other Uses -1,608 - -2,742
Other Sources 5 2,522 -
Net Investing Cash Flow 18,285 -20,424 18,105
Cash Dividends Paid - - -
Common Dividends - - -
Preferred Dividends (Cash Flow) - - -
Change in Capital Stock 107 50,400 21,869
Repurchase of Common Pref Stock - - -
Sale of Common Pref Stock 107 50,400 21,869
Proceeds from Stock Options 107 50,400 21,869
Other Proceeds from Stock Options - - -
Issuance or Reduction of Debt, Net -1,582 2,040 -31
Change in Long - Term Debt - - -
Issuance of Long-Term Debt - - -
Reduction of Long-Term Debt - - -
Net Financing Active Other Cash 2 - -
Flow
Other Financing Activities Uses - - -
Net Financing Cash Flow -1,819 52,149 21,788

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 Exchange Rate Effect 40 -7 -54
Miscellaneous Funds - - -
Net Change in Cash -3,708 7,863 -4,598
Free Cash Flow -22,141 -25,762 -46,210
Increase in Loans - - -
Decrease in Loans - - -
Increase in Deposits - - -
Decrease in Deposits - - -

2.Funding of the Company with detail of investors with rounds of funding:

A) Funding:
Date Round Amount Investor Valuation
Private
11-05-2021 Equity $1100M Aberdeen Standard Investments
Abu Dhabi Investment Authority
Corporate
27-10-2021 Minority $123M Swiss Reinsurance Company $534.78M

B) Investors:

First Funding Last Funding Investors Type City Round and Year
Asset/Investmen New York
11-05-2021 11-05-2021 Black Rock t Management Private Equity
Sovereign 1
11-05-2021 11-05-2021 GIC Wealth Fund Singapore Private Equity
CPP 1
11-05-2021 11-05-2021 Investments Pension Fund Canada Private Equity
Abu Dhabi 1
Investment United Arab
11-05-2021 11-05-2021 Authority Private Equity Emirates Private Equity
Aditya Birla 1
Sun Life
11-05-2021 11-05-2021 AMC Mutual Fund India Private Equity
Aberdeen 1
Standard Asset/Investmen United
11-05-2021 11-05-2021 Investments t Management Kingdom Private Equity
Government 1
of
11-05-2021 11-05-2021 Singapore Government Singapore Private Equity
New York 1
City
11-05-2021 11-05-2021 Comptroller Government New York Private Equity
Diversified 1
Fidelity Financial Massachusett
11-05-2021 11-05-2021 Investments Services s Private Equity
1
11-05-2021 11-05-2021 UBS Investment Bank Switzerland Private Equity

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3.Key Product Offering and Market Segmentation:
Market Segmentation:
Market segmentation is the process through which marketing managers at Paytm Wallet
can divide the large market into smaller segments based on distinct needs, characteristics, or
consumer behavior. Paytm Wallet can do segmentation based on following criteria –
geographic, demographic, usage, user status, income, lifestyle, value proposition priorities,
benefits sought, loyalty status, gender, social class, self-perception, psychographic factors,
and other attitudes. One of the most widely used multivariate segmentation system is –
PRIZM, developed by Clarita’s. It is widely used by various marketing and advertising
agencies. It comprises 68 customer segments based on the US Household Purchasing
Preferences data.
Kay product Offering:
1.paytm Payment bank:
Paytm received a licene RBI to launch the Paytm Payments Bank as a separate entity.
Founder Vijay Shekhar Sharma will hold 51% share, One97 Communications 39% and 10%
will be held by a subsidiary of One97 and Sharma. The bank was officially inaugurated in
November 2017. Over 1,00,000 banking outlets across India by the end of 2018. However,
the bank's branches are yet to touch double digits.
The Bank has appointed veteran banker Satish Kumar Gupta as its new Managing
Director and CEO
2.Paytm Mall:
Paytm launched its Paytm Mall app, which allows consumers to shop from 1.4 lakh registered
sellers. Paytm Mall is a B2C model inspired by China's largest B2C retail platform Tall.
Sellers have to pass through Paytm-certified warehouses and channels to ensure consumer
trust.
4.Demography of Paytm:
As mentioned earlier, Paytm’s business model is B2B and B2B2C. The company caters
to Offline retailers and businessmen/women and small underserving merchants, Consumer
business and The Unity Small Finance Bank. And the business solutions provided by Bharat
are specifically designed to cater to the above-mentioned segments. started as an online
wallet, later transformed into a complete mall and brought a paradigm shift to the retail
industry.
Be it a prepaid mobile recharge, paying utility bills, booking train tickets or shopping
for clothes, this m-commerce store became the substitute for several apps. Users can recharge
their DTH, book movie tickets, pay insurance premiums, shopping bills, contribute to the
charity of your liking and get in the fast lane with Paytm Fasting. The M-commerce aspect of
the portal lets several merchants list their products.
5.Competition Matrix:
The two main competitors are Bartle and Phoneme:

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 Competition Matrix
Particulars Bharat Paytm Phone payee
Funding $702.25M $2.5 B $1.2B

Bharat Paytm Bank, UPI Payments

, Insurance, Recharges,
Card, Wallet,
Investments

Product/ service Bharat Swipe, Recharge and

Bharat Bill services,

Loans Digital Gold

Though Though the

almost all merchant
features are transactions
same with done by

Bharat and Ponape of

Pat, like $1B surpass

provision of the
loans to the transactions
Through Unique
QR code then users even done by
Comparison Paytm, True caller, they reach Bharat
Amazon Pay, Gay transaction ($76M),
accepted it. limit. But Bharat is
Paytm is considered as

considered to better option

be better among both

company in because of its
terms of unique QR
provision of Payment
service system.

6.Relevance of Company in current Fintech Landscape:

News: Wells Fargo Looks to BaaS, A $26B Acquisition, Paytm’s $1B Raise.
Paytm is a payments company that offers multi-source and multi-destination payment
solutions. It offers comprehensive payment solutions to merchants and allows consumers to

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make payments from any bank account to any bank account at a 0% reinstalment of Paytm
wallet another fintech give reliant change in fintech and banking industry.
As per EY report of innovation blockchain is important patty and it has advantage of
straightforwardness, changeless, audacity. Blockchain gives security to data. As Paytm is
digital Paytm app which secured Paytm using technology it gives more importance in today’s
covid era as a cashless transaction and put more relevance in business scenario. FinTech is
significantly innovated to money related concept, adjustment and strategies and Paytm is the
one of the leading fintech in term of digital payment gateway.
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