An EPS NewsletterVol. 09

July - September 2016

TM

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Thyagarajan Seshadri

President, Banking Rela�ons

India has reached a point of complete disrup�on under the Digital India Founda�on

campaign as there is no other sector that is witnessing so much change in the last

couple of years. With over 100 crore mobile numbers, out of which 250 - 300 million

are smartphone users, and 100 Crore Aadhaar Unique iden�ty numbers, these are

some clear trends emerging that will become hall mark of the transforma�on in play

within banking and financial services.

As per a report “Banking in the �me of disrup�on” by Mr. Nandan Nilekani, the

transforma�on within banking and financial services will witness a major change as

nature of transac�ons will change from low volume, high value and high cost to high

volume, low value and low cost.

Creden�als will move from proprietary to open without se�ng into the business of iden�ty management. The cost of switching,

cost of on-boarding, and cost of transac�ng will fall further, as the churn goes up and volumes explode.

It is also observed that financial services business will move to making revenue from data rather than fees. PSU banks quite likely

see their market share shrink (like telecom monopolies did a�er the 1990's) making way for de facto priva�sa�on. Merchant

models will be completely disrupted as entry of large number of small merchants into formal economy, will accelerate. Digital

penetra�on will change the landscape of banking where smartphone itself becomes a bank. Old style assets will be replaced by

new ones like think phones, pla�orms, data, algorithms.

With three pillars of JAM, enabling universal banking, India will become 'Data rich' where electronic consent architecture, part of

'India stack', will boost data economy and give the pla�orm for more data about a customer, allowing to be served be�er, thereby

increasing s�ckiness.

UPI, a key component of 'India stack' is set to unbundle payments and enable merchants to use self- service systems. Merchants,

with a UPI-enabled app, can accept all customers and ini�ate both push and pull transac�ons, using any transmission protocol

that they choose.

It is an exponen�al market capitalisa�on opportunity, in the vicinity of USD $400 Billion, which is expected by year 2020. We are

one of the largest unbanked and underbanked markets in the world where banking and financial services will undergo complete

disrup�on and financial inclusion, will become a reality.

Last quarter has been rewarding, with RBI gran�ng EPS, the in- principle authorisa�on, for issuing and opera�ng Payment System

for semi-closed wallet service. Mee�ng with joint secretory at PMO office, made enroutes towards understanding the status,

issues, challenges faced by ATM and payment industry. White papers promo�ng ATM and payment industry has been submi�ed

to the commi�ee on digital payments cons�tuted by Union Cabinet along with recommenda�on to foster growth of digital

transac�on and payments, submi�ed to Payment Council of India. Con�nued interac�on with various media publica�on like

Governance Today, ET, India Infoline, SME Street etc also had been enablers in increasing EPS' brand visibility in the industry

space.

From the President's Desk:

INSIDE THIS ISSUE

Page 2

SUCCESSSTORIES

Page 2

AWARDS& ACCOLLADES

Page 3

INDUSTRY EVENTS & CONFERENCE

Page 4

MEDIA COVERAGE

Page 5

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Page 6

EPS RESOURCE CENTRE

SUCCESS STORIES

EPS ROLLED OUT 1000 ATMS FOR CANARA BANK PROJECT AUGUST 2016

It was last year when EPS had won the bid for end- to- end ATM deployment services for Canara Bank (non- MOF Project) across India. In August the company reached a total of 1076 ATM machines being deployed in addi�on to the first phase, that has set a new milestone.

JULY 2016

EPS was granted an in- principle Authorisa�on from Reserve Bank of India for issuing and opera�ng Payment System for semi- closed wallet service. Being a payment aggregator, this new ini�a�ve opens doors towards organic revenue growth.

AUGUST 2016

EPS launched its corporate Standard Opera�ng Procedures (SoP), EPSure which reflects end-to-end scenarios and industry standard prac�ces and procedures to refurbish control environment enabling op�mal governance and assurance.

AUGUST 2016

EPShare is EPS' very own SharePoint pla�orm for Document & File Management, Intranet Portals, Social Networks, Websites, Extranets, Advanced Search Func�onality and Business Intelligence Solu�ons. Custom made solu�ons have been developed on this pla�orm to increase availability of crucial & important info in a �mely manner, more visibility of key processes, making our opera�ons more efficient and process driven.

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AWARDS & ACCOLLADES

EPS FEATURED AMONG 13 BIGGEST FUNDEDSTARTUPS IN INDIA 2016 IN THE FINTECH

SPOTLIGHT EDITION OF YOURSTORY MAGAZINE

MUMBAI, JULY 2016

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FASTEST GROWING INDIAN COMPANY EXCELLENCE AWARDTHAILAND, AUGUST 2016

EPS was honored with the ‘Fastest Growing Indian Company Excellence Award’ at the 8th Interna�onal Achievers Summit 2016 on Global Business Opportuni�es in Bangkok, Thailand on August 12, 2016.

The award was presented by Her Royal Excellency Dr. Mom Luang Rajadarasri Jayankura, Honorary Consul Republic of Kosovo, Thailand, Mr. Thatchai Chuenchom, Director - Strategic Advisor Commi�ee, Thailand and Major (Retd.) Ved Prakash, Secretary - All India Congress Commi�ee (India).

The summit brought together successful achievers and organiza�ons who have been contribu�ng to the social, economic and infrastructural development in and around India. The awardees were recognized for their life�me contribu�ons in their respec�ve fields, for developing interna�onal business, trade and professional partnerships. Delegates from the Union Ministry, na�onal leaders, ambassadors and high commission as well as eminent dignitaries from various countries were in a�endance. The 8th Interna�onal Achievers Summit 2016 witnessed par�cipa�on from more than 300 business delega�ons from India, Thailand and Malaysia from diverse industries like health, educa�on, tourism and in infrastructure.

PRESS RELEASE:

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INDUSTRY EVENTS & CONFERENCE

ND2 INDIA'S PAYMENT CORRIDOR SUMMIT - UNLEASHING BANKING INTO NEW HORIZON

MUMBAI, AUGUST, 2016

EPS par�cipated in the 2nd India's Payment Corridor Summit 2016 as a Lanyard Partner wherein top banking, financial organisa�ons and ins�tu�ons joined hands to promote the evolu�on and future scope of the payments industry. This event was organised by Governance Today magazine in associa�on with NPCI (Na�onal Payment Corpora�on of India). There were various topics in considera�on which highlighted the success parameters of payment gateway, banking infrastructure, cyber security, payment banks, cashless transac�ons etc. to support the Digital India ini�a�ve.

There were several key delegates from the banking and Fintech fraternity to highlight transparent and reliable transac�on of funds, risks, technology innova�on and future business scope. Thyagarajan Seshadri, President-Banking Rela�ons from EPS received an honorary token of apprecia�on from Mr. Ajit Sinha, CEO of Governance Today, for his addressal on a special industry presenta�on based on the Rising Fintech Sector in India.

THEPS 5 FOUNDERS' DAY

MUMBAI, SEPTEMBER 2016

On the occasion of EPS 5th Founders' Day, there was a huge contribu�on from all employees along with management personnel and key delegates across industry in remembrance of the corporate journey, milestones, achievements and present success. EPS launched the ATM Industry Report 'Evolu�on of the Indian ATM Industry & the Role of EPS' along with corporate Case Study 'EPS: Revolu�onizing The Indian ATM Industry' by ET Cases. This event earned be�er momentum with renowned delegates from the industry namely, Mr. Deepak Chandnani, Chief opera�ng Officer-Worldline South Asia and Middle East, Dr. N Rajendran, Chief Technology Officer-Na�onal Payment Council of India and Mr. B Sambhamurthy, Ex-Director and Chief Execu�ve Officer- Ins�tute for Development and Research in Banking Technology (IDRBT). On behalf of the management and staff at EPS, we extend our sincere gra�tude to our Hon'ble Guests of Honour for suppor�ng EPS and felicita�ng the award winners.

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EPS IN THE MEDIA

MEDIA COVERAGE & PRESS RELEASE

World Bank data shows China, South Africa, Brazil and Russia are having 50, 62, 130 and 150 ATMs per 1 lakh adults respec�vely. Young millennials who have opened their accounts, wouldn't have seen the branch a�er they have received their ATM cards as they have access to nearly all services through ATMs. Card-enabled transac�ons would move to cardless transac�ons. ATMs are not going to be the conven�onal ATM as in a short span of �me cardless transac�ons, NSC-enabled and QR Code-based transac�ons would drive transac�ons at mobile-enabled, Aadhar-enabled ATMs, which would use biometric authen�ca�on. Cardless

transac�ons would reduce fraud such as cases of skimming and some element of mischief by hackers would be warded off. In the future, you could print an airline �cket through ATM and even recharge your wallet through ATMs, which currently banks are not geared to offer.

EPS was featured in the Industry Story 'ATMs will rule, even if cash isn't the king' in September 2016.

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ATMs have come to be seen as the symbols of new age banking industry, in which the banking service is no longer confined to bank branches. EPS is at the vanguard of ATM related technologies and services in the country and has indeed been the pioneer of the sector. While interac�ng with Governance Today.

EPS elucidates about its services and the new paradigm of ATM based banking sector.

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ATMs in India are no longer just cash dispensers. From paying off your electricity or gas bill to buying gold coins while displaying current market prices, new-age intelligent ATMs are being designed to do it all.

ATM managers like FSS, CMS, AGS, and OEM makers like Diebold and NCR are looking at launching intelligent deposit ATMs with mul�-func�on capabili�es like cash recycling, foreign exchange, loan repayment, cheque encashment and bill payment for u�li�es, mobile recharge and DTH top-ups. Cross-selling of products like gran�ng of loans is something that is very easily doable and our ATMs have the capability. It's the underwri�ng and credit checks that needs to be in place from the banks' end.

EPS was featured in the Industry Story ‘Pay bills, repay loan, book air �ckets at ATM' in September 2016.

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The ATM industry has altered the Indian banking landscape in last two decades. The enhanced technology, increased func�onality and accessibility have made ATMs all the more beneficial The future of the ATM industry is governed by the emerging trend of white-label ATMs, especially in semi-urban and rural areas. With RBI playing an immense role in micro-financing and banking outreach programmes, financial ins�tu�ons have started focusing on financial inclusion, and are mo�va�ng banks to be more adept to branchless channels. Indian banks have started embracing the social media pla�orm in a big way with the advancements in enhanced services, technological advancements and increased compe��on leading to vast volumes of transac�ons on a con�nuous basis, and this volume is only set to increase.

EPS was featured in this story �tled ‘Cash-based or cashless economy, ATM industry is set to soar' in August 2016.

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EPS RESOURCE CENTREATM INDUSTRY REPORT & EPS CASE STUDY 2016- 17

ET CASES, SEPTEMBER 2016

Read More Read More

EPS produced and launched an exclusive industry research report 'Revolu�onizing the Indian ATM Industry' and case study 'Revolu�onizing the Indian ATM Industry' in collabora�on with Economic Times Cases in September 2016.

Names from le� to right:

Dr. N Rajendran, Chief Technology Officer - Na�onal Payment Council of India.

Mr. Deepak Chandnani, Chief Opera�ng Officer - Worldline South Asia and Middle East.

Mr. B Sambhamurthy, Ex-Director & Chief Execu�ve Officer - Ins�tute for Development and Research in Banking Technology (IDRBT).

Mr. Mani Mamallan, Managing Director - EPS.

Mr. Sanjay Kapoor, Director - EPS.

Mrs. VidyaMani Mamallan, President- Human Resources & Administra�on, EPS.

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Corporate Videos from Recent Events

5th Founders' Day 2016 CII Banking Tech Summit 2016

ET Cases Case Suite withMani Mamallan

ET Cases Case Suite withPrakash Joshi

ET Cases Case Suite withThyagarajan Seshadri

ET Cases Case Suite withVidya Mani Mamallan and Manpri� Kkomal

ET Cases Case Suite withRichard Canday

ET Cases Case Suite withAditya Saavant

ET Cases Case Suite withRohit Jain

5th Floor, 'F' Wing, Solaris - I, Saki Vihar Road, Andheri (E), Mumbai - 400 072

+91 22 4022 2900 | info@electronicpay.in | www.electronicpay.in

Editor-in-ChiefRichard Canday

Execu�ve EditorDevina Narayan

Edited & Published by Richard Canday

On behalf of Electronic Payment And Services (P) Ltd.

Editorial Board

© Copyright 2016 Electronic Payment And Services Pvt. Ltd., All Rights Reserved. No part of this publication may be reproduced in whole or in part without the written permission of the publisher and copyright owners. EPS acknowledges the products, brands and trademarks mentioned in this document are the properties of their respective organizations.

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Achievement Award 2016

International Achievers Award ATM Industry Champion- ATMIA