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Tag: Blockchain

Andhra Pradesh Government’s Initiatives to Promote Fintech in Vizag

Posted on by Imarticus Learning

Known as the city of destiny, Vizag recently made its presence felt in the global fintech scene. We witnessed global financial technology start-ups like SOSA, DXC, and Cardlytics announcing their launch in the city. How was this possible? Let’s consider some of the enabling factors in this article.
Launch of Fintech Valley Vizag
In 2016, the government of Andhra Pradesh launched a project named Fintech Valley Vizag. Since then Vizag has developed a self-sustainable global fintech ecosystem in its premises. The Valley has outlined a series of initiatives in Vizag to gain global recognition. Few of them are detailed below:

  1. The Blockchain Business Conference 2017

    Blockchain has proven to be the key to India’s digital future. The security woes of fintech organisations are expected to be resolved through blockchain technologies. In 2017, the Valley conducted an international business conference primarily addressing the topic of the blockchain. Vizag also hosted global leaders of the blockchain technology during this conference.
  2. The launch of BFSI case repository program

    To operationalize the BFSI Use Case repository, the Valley launched a Hackathon and Innovation Challenge. This event was backed by many leading banks, insurance companies, NBFCs, and capital markets companies.
  3. Fintech Valley Accelerator Program

    This program gave an opportunity to the selected startups of the valley to connect with the leading Fintech players around the world. This three months long program provides market access, technology resources, fundraising and legal guidance to the beginners.

Though these events boosted the image of Fintech ecosystem in Vizag, more key facilities were developed around the city prior to this.
Building the Fintech Ecosystem
The whole state of Andhra Pradesh was prepared to host the Fintech Valley of Vizag through the initiatives of the state government that include the following among others.

  • All the Gram Panchayats of the state were provided with a high-speed internet connection and all the businesses were connected to a 1Gbit/s internet.
  • Literacy in Digital Financing: A program named Marpu Nestam was launched in AP. Agents were deployed all over the state to educate people on digital financial literacy on an incentive scheme.
  • Andhra Pradesh – Purse – The government launched a mobile app comprising 13 mobile banking and 10 other mobile wallets. It helped to promote E-transactions in the state.
  • The dashboard of Chief Minister: The chief minister of the state was provided with a dashboard to effectively monitor the key performance indicators of government departments.
  • E-Pragathi: Digitalisation of government projects were carried out to enable E-governance. These projects include education health and agriculture.

The Incentive Plans
Various incentive schemes were introduced for the companies to kick-off their launches with. For projects with land allotments, a discount rate of 80% and $700 per employee was offered while $1500 per employee was offered for the projects without land allotments. The electricity tariff also had an incentive of 20% discount.
In general, the state government of Andhra Pradesh is determined to make the Fintech Valley a global hub for Financial Technologies. With the current aggressive rate of promotion and success, we can expect that dream to come true in the near future.

Challenges Fintech Companies Face While Expanding to Rural India

Posted on by Imarticus Learning

Fintech companies move ahead with creative innovations in both the field of finances and technology. In India, Fintech does have a successful turnover in the Indian market which concern financial transaction between masses through various media. Citing examples of Fintech in daily lives of Indians, one may note the usage of payment apps like Paytm, PhonePe or Google Tez app which have progressively changed the process of monetary transactions for various purposes.
Such apps are especially popular for peer-to-peer (PtoP) transactions i.e. digital money exchanges at the local level. In fact, these Fintech start-ups have been on the increase in the subcontinent giving multiple options to a larger section of the community without the documentary hassles which had often been associated with the banks. One can thus say that Fintech is a booming process in India be it the upper class or the much larger population of rural India.
Nonetheless, one can easily accept that as opportunities grow for these Fintech courses, new challenges also crop up. The online money transfer feature was a huge success for the initial start-ups in the field especially during the period of Demonetisation when larger currencies were banned. Eventually, a lot of start-ups have opened up providing the same feature increasing the competition in the market. Only those can stay put in the market that have a robust foundational framework and have been kept intact with a strong experienced team.
A firm foundation depends on apt funding which can be a problem in India due to the cap on foreign investment. It is a well regarded fact that most Fintech players can only stay intact in the long run if they work on collaborating with the bigger well-established banks in India and the top few players can hit the home run on that front.
One of the major obstacles faced by these Fintech organizations is the lack of proper regulations since the Reserve Bank of India and the Exchange Board of India are yet to work on a comprehensive, exclusive set of guidelines for them. Moreover, the organizations must have a firm outlook while developing strategies making them reliable to the banking firms. Key technologies like cryptocurrency have not been given due credit in India.
At this point that Fintech is all about fresh new innovations at the right time since the digital market is a volatile playground. India’s record on that part is yet to reach a world class level. The market is specifically dynamic sensitive to small changes in prices and the evanescent base of customer loyalty. Cryptocurrency is a primary keyword of Fintech incorporating concepts like blockchains and liquid money to enhance the digital market.
Cryptocurrency with AI technology like Robotics Automation Process (RPA) can have great potential. RPA has in fact been actualized by organizations like Wipro and Accenture. Insurance companies have maximum usage of RPA followed by banking and financial services. A cost-effective solution is still being tested to explore the possibilities of this rather new tool.
Talking about the audience, there is a significant gradient scope in the level of digital awareness of masses. While there is an increasing base of tech-savvy people, there is also a large section deprived of basic literacy. Thus, in spite of a huge population, these organizations fail to reach the masses and even those who desperately need it. The sellers therefore need themselves to be aware of the fact that there’s a large portion of the crowd that needs awareness. While developments are being made, it will still take a considerable amount of time to cover this gap of knowledge.
Finally, one comes to the discussion of the anxieties of data security which is a constant threat to any Fintech industry. Personal financial data of individuals are very sensitive which can never be under-valued. A strong force of security should be the topmost priority in a country of massive population.
Cyber security rules in India are still under development and several cases keep coming up of hackers and their threats. Sellers should be extremely cautious from the beginning since any vulnerability displayed may cause a massive rupture in reputation and future prospects.
The Government and finance controls play indispensable roles for these Fintech firms. Newly developing products go on to increase complexities before the resolution of the previous problem and as such, a stack of issues crop up which leads to the ultimate downfall. While Indian firms are working on these issues but the audience adaptations is a crucial area to explore.

Blockchain vs Bitcoin

Posted on by Imarticus Learning

Just like the 2000 internet bubble, the innovation that is going to change markets globally is the Blockchain network! There is a lot of hype about these critical buzzwords, and it is only valid to say that ten years down the lane, a lack of knowledge in Blockchain is going to be very tough to survive. As the market moves so should the people involved in it irrespective of their positions as buyers or sellers.
It can be noticed that in many instances, Blockchain and Bitcoins are used invariably but according to what they stand for, it is an injustice to give them both the same name. However, it is true that they are closely related. A Blockchain is a digital technology that records all the transactions that happen in a peer to peer network. Bitcoin, on the other hand, is a form of popular cryptocurrency that facilitates the said transactions. The blockchain is the path that the bitcoin which is more like cash takes to travel between its users. The terms are often mixed up as the blockchain was initially discovered to support bitcoins. Only recently has there been talks of using the blockchain network for other uses but up to this date bitcoin predominantly rules over the blockchain network.
Also Read : Scope of Blockchain Technology in India
Money can take different forms, and it has only been proved in and out over the years. Cryptocurrency is one such and blockchain seems to be a better option mainly due to the safety aspects. It is not entirely natural to add a block in the already existing blockchain, and even if it should be combined, it requires the consensus of the involved parties. This decentralised approach helps prevent monopoly control over such a powerful mechanism and gives each and everyone involved the responsibility to take care of what belongs to them. The amount of scrutiny helps to maintain the network fraud-free and comes to support large transactions which done any other way would be time-consuming and more exhausting.
blockchain vs bitcoingTo summarise the benefits of blockchain and their add-on currencies, it can say that, this technology helps to increase transparency thus helping to target the places, if and where the problem occurs. The permanency of these ledgers also helps in keeping and verifying said data which proves to be valuable. Overall it helps to ease the pockets of business, and it is noted that the blockchain network can be utilised by small businesses to attain full utilisation of their resources. However, like any new technology, blockchain is also viewed with the sceptical eye for complications regarding the sophisticated technology and its regulatory implications. There is also a threat from competing platforms.
The paradox in Bitcoin-Blockchain relationship is the fact that it is open, public, free to scrutiny but remains to be anonymous. It is indeed true that the advent of blockchain was mostly to avoid government currency control policies and to get rid of any unnecessary intermediaries. This privacy it provides has also been one of the main welcoming factors for the income of the Blockchain era.
In the majority, blockchain and bitcoins are used in the financial sector and only recently are their talks to test its permutations and combinations in other areas. But seeing the technology of blockchain starting from a tiny bud and move up like a beanstalk in so less time is quite alarming. Anything that moves at such a rapid pace is bound to bring some radical changes, and it is us, the people, the consumers, the buyers, the knowledgeable citizen’s responsibility to keep up with the pace and always be aware of the consequences that follow.
Related Article:

The Convergence of Blockchain, AI and Big Data Analytics

Posted on by Imarticus Learning

Undoubtedly, blockchain and artificial intelligence (AI) are the two most revolutionary innovations which have speeded up the process of technology. In the present era of DIGITAL REVOLUTION, technology is expanding exponentially, and the interplay of Blockchain, AI and big data analytics is considerable. The convergence of these three prominent technologies has opened the gateways for enhanced efficiency and transparency in operations. But before we switch over to the intricacies involved with these terms, let me untangle you from the web of their definitions.
Also Read: Importance of Blockchain in Big Data

Blockchain

The term blockchain is often limited to online transactions and cryptocurrencies, but it must be viewed in a much broader perspective. The Internet is a vulnerable thing prone to online thefts, and this is where the role of blockchain comes into play. It ensures trusted transactions through guarded, linear and permanent, indexed records. These can be referred to by laymen without any censorship and are extremely helpful in communication and payment mechanism.

Big data analytics

It examines piles of data to uncover hidden patterns and other insights. Also, it brings speed and efficiency to the table. Behind every quick, agile and competitive business is the power of big data analytics. Recently, it has risen in demand in the banking sector, and governments have started relying heavily on it.
The instances given below will elucidate how the trio of blockchain technology, AI and big data analytics has been a big game player in transforming industries and businesses.

Artificial intelligence (AI)

A machine is said to possess AI if it perceives its surrounding environment and eventually takes such actions which maximize the chances of achieving the aimed goal. AI has proved to be instrumental in a plethora of activities such as optimizing energy consumption, healthcare, finance and economies.

Helpful in Fighting Land Frauds

Blockchain technology is quite helpful in sealing land deals throughout the world. The technology has been used in Andhra Pradesh, India and a blockchain technology park was proposed in Vishakhapatnam.

Banking Sector and Audits

Banks have been highly interested in using blockchain and AI to increase efficiency in the banking system. AI makes continuous audits possible for financial statements. The overall audit risk is reduced, and the level of assurance is increased. Other financial companies such as credit and debit payment companies use blockchain based API’s to authenticate payments.

Travel and hospitality

Customer satisfaction is the topmost priority of travel and hotel industry. Thus, big data analytics proves to be helpful in gauging customer ratings in a timely manner. It gives businesses the authority and ability to collect customer data, identify potential problems if any and come up with better results immediately.

Healthcare

Big data analytics help in simplifying both structured and unstructured data which includes patient records, health plans, etc. in the healthcare sector. The data thus obtained can be helpful in providing immediate diagnoses and treatments.
Artificial intelligence is all set to assist doctors. There are more than 800 medicines prescribed for the treatment of cancer. Microsoft is working on a machine called “Hanover” which will memorize all the papers and give a cure for every patient individually.
Blockchain technology has been helpful in promoting greater transparency in pharmaceuticals by allotting a unique serial number to each drug.

Video games

AI is used to generate purposeful behaviour in non-playing characters.
Thus, whatever the field may be right from the public sector to government sector, these emerging technologies have made serious impacts. Very soon, artificial intelligence can prove to be a big player in world economies.
Related Blog:

  • Blockchain Revolution: Prosperity in the Era of the Internet
  • What Are the Advantages of Blockchain Certification?

Bring on Blockchain

Posted on by Imarticus Learning

The blockchain and Internet of Things (IoT) are two topics which are causing a great deal of hype and excitement, not just in the technology circle but in the wider business world, too.
In principle, it makes a lot of sense. The blockchain is an encrypted, distributed computer filing system designed to allow the creation of tamper-proof, real-time records. IoT is a term used to describe the ongoing proliferation of always-online, data-gathering devices into our work and personal lives.