CIA -III

GROUP ASSIGNMENT
FOR MANAGEMENT OF FINANCIAL SERVICES

By

RADHIKA SINGHAL 2127948

ANUBHAV 2128207
DEEKSHITH KUMAR S 2128211
AYUSH KARWA 2128264

Under the Guidance of

DR. SURESHA B

MBA PROGRAMME
SCHOOL OF BUSINESS AND MANAGEMENT
CHRIST (DEEMED TO BE UNIVERSITY), BANGALORE

APRIL 2022
S.No Content Page No.

1. Introduction 2

2. Problem Statement 4

3. Innovative Product 5

4. Feasibility 7

5. Conclusion 8

Introduction

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Our idea is to create an ecosystem for availing financial services through use of technology and
solutions. The innovative product we are trying to introduce is the new payment service system
which can happen in every hamlet of India with super-fast payment processing time without any
issues of server and which is most importantly cost effective and available with use of limited
resources.

The idea of the product came out with the real-life problems which we will be discussing in the
problem statement. The basement of the college has canteen and there the network fluctuation is
most due to the amount of crowd handling by the network operators. Sometimes the payment
may get stuck and there are many instances where we have to repay and realize the payment has
been done twice and there is a lot of problem coming up with the payee and payer.

The product which we have designed comes up removing the limitation of many of the payment
systems available in the market, we have tried to make a product which is user friendly as low
maintenance which saves resources on the economy of scale.

We are coming up with a product which reduces the limitation of Indian Financial services:
● Customer inefficiencies
● Minimal access
● Located in few areas
● Scalability and interoperability platform
● High cost
● Low Financial literacy

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 Problem Statement

We are quoting Victor Hugo, ''No power on Earth can stop an idea whose time has come''

The new India is using the digital revolution and therefore coming up with digital financial
service will give a boost to the idea. The Indian financial service industry is quite unexplored
with 1200000 branches serving a population of more than 125 crores, the problem with such a
sector is the access, trust and convenience, all these three aspects are missing in the financial
sector. The average bank service hours are till 2 O’clock and average 2hrs/20 km a person has to
walk to get service of banking. The market is highly unorganized and the area to explore is
unfathomable.

In recent years, India has taken a big step forward towards becoming a cashless economy by
increasing the number of digital payments. Demonetization and Covid-19 have been the major
factors for this boom in the digital economy.

However, there is still a big challenge for providing good and secure internet connectivity in
every region to keep the economy growing. According to sources, there are around 60 crore
smartphone users in India. However, not all of them have seamless access to internet
connectivity to make payments digitally with ease.

If we see the recent example, we can take Christ University. The internet connectivity is very
poor in the Gourmet Area in the Central Block of the University and other places as well. It has
led to a lot of struggles in making payments to various shops there. Sometimes the transaction
takes place twice or shows payment failure at one end but the amount is deducted on the other
end.
People going to Lahaul and spiti for bike riding and adventuring face cash crunch due to
unavailability of atm or any cash kiosk, so to tackle this problem our payment system can suffice
the gap and we can travel without any worry of payment thing and enjoy the trip without having
a thought of inability to pay or carry cash.

The tall multi storied buildings and offices cannot pay as their phone has no signal, they have
wifi but for payment no signal for otp, so in this situation our payment has come up with a new
idea.

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In these times when digital payments are encouraged and are increasing every day, students face
issues in paying through cash, which has resulted in them finding other places to go. This has led
to lost sales revenue for those shops.

Innovative Product

The product here is On demand payment system(ODPS), this

product which we have innovated is quite futuristic and keeping all the
constraints present in the market, this product can be a tough
competition to the present payment system, this product is more of
user friendly as it saves time, and the product will be successful as it
happens with less involvement of customer, we have seen the fast
changing world wants things to happen at click of a button, google has started giving the time
duration in which a search result is happening. So here the concept being a fast payment system
is the USP of our product. The limit of transaction can be set based on the frequency of amount
spent by the customer.

Functioning Of the Product

The product is related to new payment system that allows payment to retailer by debiting your
account, in this the user will be given a unique customer code that he can tell the retailer so that
he debits the amount, on entering the unique customer code and the amount on his portal, a OTP
will be sent to the customer who on his authorization of OTP to retailer will make sure that he is
able to pay the amount.

Here the customer can choose to have OTP on his cellphone or google authenticator, this can be
decided by the customer. Both options are available so that the customer has leeway to choose
the way of safety, if he feels otp on phone is better or google authenticator, the reason to have
two method of OTP is to make sure that the customer in any situation can make payment,
sometimes it happens to be we have 2G network in hinterland so only messages and calls can
happen, so in that scenario he can use OTP via cellphone as approving the transaction.

The other thing is that we all live in flats, go to basement, some malls where all the telecom
operators are not able to provide network, in this case we can use the google authenticator code
to make the payment, this google authenticator is much advanced in terms of aptness and
accuracy, it reduces the elapsed time for payment OTP.
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The only thing here the retailer has to have is usual POS terminal through which he does the
debit/credit card transactions, he can use the same device to have this in his payment acceptance
option. In this way he need not to spend on the technological aspect, the system is very simple
and hassle free which can reduce the gap of payment system overall India, every nook and corner
of the Country can make payment without being dependent on the Internet.

The payment history of transactions can be available with the click of a button on your phone by
Dialing USSD code on keypad or if you have connectivity assistance, so one can use his net
banking to have hold of his transaction. Through this method we have tried to focus on reducing
the payment gap as well as the reduction in payment lag time.

Benefits of On Demand Payment System

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 Feasibility

The digital economy revolution came into major effect in the year 2016 where the country
wanted to drive towards a digital economy. Even in the recent Union Budget, India looked at
launching e-currency or digital currency by 2023 using JAM trinity (Jan Dhan-Aadhaar-Mobile).
This also adds to the development of the Green Economy in the country and to make India
transparent and to overcome all the challenges faced to reduce Black Money.

With regard to on demand payment system (ODPS), like no other UPI it saves a lot of time in
transferring the funds from one account to another. It makes the concept of digital banking more
meaningful as time saving is one of the main aspects of digital banking. ODPS will be one of the
most complex and sophisticated infrastructures in the world. It uses OTP and Google
Authentication for on demand transfer of money and the best benefit that can be provided is that
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it even works without internet or even without network as well. This system makes ODPS most
secure and reliable among all the 200 competitors which include PhonePe and Google Pay too.

The main intention is to provide the best digital payment with low cost, and even the government
is providing many incentives and backing the system. It has also reduced some taxes and
announced incentives for digital payments and fund transfers. It has launched Lucky Grahak
Yojana for customers and Digi Dhan Vyapar Yojana for shopkeepers where we can make use of
this benefit to promote our service.

With all the inefficiencies in financial service such as Customer inconvenience, Minimal access
to banking, Accessible in major cities, High Cost, Low Education; to overcome all these people
will be motivated to use ODPS where there won't be any inconvenience for customers using this,
as this system requirement is available to most of the people both in Rural and Urban areas. With
people having minimal access and access in major cities many people can turn towards this
system which is the most secure among all other payment apps. And with regard to cost, as
mentioned above there will be a charging minimum and there is no need to be educated about
this system as it is simple to use unlike any other payment system.

To sustain for a longer time in the business, we have even planned to introduce other services for
our customers like Insurance service where the prime motive is to have less cost, Bill payment,
Recharge, Money Transfer. Even by introducing all these additional services, our main motive is
to benefit people in easy mode of payment without any inconvenience and secure payment
method.

Conclusion

As we have seen above, the uptrend in the digital payment services and covid-19 pandemic gave
a boost to the whole digital infrastructure, but as we go further into the journey and difficulty
comes, and where we found the gap in the system and made our products that can fill the gap in
the system, the user of the system gains most of it. The product we have developed is unique,
and as we grow in terms of users for our product, more innovative features will be added to the
existing product or system. Our product will develop the digital financial ecosystem and will
ease and cover every nook and corner of the country; our product will reduce the gap in financial
service for every citizen, the product will be easy to understand, and financial literacy won’t be a
hindrance in the path of expanding the product.

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As we march towards the USD 5 trillion economy by 2025, we see a wide scope of the fintech
sector to grow and the supply of talent and the need for the right skilled talent is also growing
rapidly which will help the economy to achieve their target also.