THE ASIAN BANKER SUMMIT 2011

Suresh Sethi, Group President, Transaction Banking

Yes Bank Ltd

Low Value Payments in AsiaInteroperability issues….

April 19, 2023

• Full Access to Fin. Products• Medium - Very High value

txns.• Fully diversified spend patterns

• Limited Access to Fin. Products

• Medium - High value txns.• Moderately diversified spend

patterns

• No Access to Fin. Products• Low value txns.• Restricted spend patternsEM

ERG

ING

MARKET

S

EMER

GIN

G M

ARKET

S

DEV

ELOPED

MARKETS

DEV

ELOPED

MARKETS

BANKEDBANKED

UN-BANKEDUN-BANKED

UNDER-BANKEDUNDER-BANKED

BANKEDBANKED

UN-BANKEDUN-BANKED

UNDER-BANKEDUNDER-BANKED

Payments Landscape

Case for Interoperability

Asian banks, in the aftermath of the global crisis, are well positioned to garner market share from global banks in their home turf

Consequently they have to put their act together to stack up their capabilities and meet the standards of Multinational Corporates

Value at the bottom of the Pyramid – under tapped potential for channelizing worker remittances from the Indian Diaspora

April 19, 2023

What is required?

Corporate (High Value) Payments

Payments Hub (Shared Service Model) to handle all payments across all entities within a financial group• Flexibility to meet customer’s unique requirements• Ability to support new changes/mechanisms/channels without costing as

much as ‘bespoke’ customizations An interface which allows the corporate treasurer to assess and

mobilize funds as per requirement Seamless and quick movement of cash between geographies

• Corporate need for seamless domestic and international payment systems

• Limited capability of domestic banks to provide a STP and interoperable cross border payment system

Open Looped Systems – Movement from Bank controlled standards to Client controlled standards – Development of XML based standards

What is required?

Retail (Low Value) Payments

Active use of Mobile and contactless cards to perpetuate payments to remote locations (worker remittances)

Leveraging on National networks to spruce up internal systems to better serve the customers

Correspondent relationships/Branch Network/ Banking Correspondent in key remittance corridors

Robust AML and other integrity checks to ensure regulatory compliance

Technology – disruptive at that

Micro ATM – that too talking…. IVR transactions – growing use cases from non

PC homes Mobile commerce – bypassing PC payment

learning phase UID linked txn capability – real inclusion with bio

- auth Voice recognition based txn – authentication at

it’s best

April 19, 2023

NFC payments – will disruptive technologies hit it??

Payments Landscape in India

The only ‘Greenfield’ private sector bank to be set up in the last decade in India

Knowledge Banking - Key Differentiator with ‘One-Bank’ customer proposition

Ranked as India’s No 1 New Private Sector Bank in the Financial Express – E&Y Best Banks Survey 2010

Recognized as “India’s Fastest Growing Bank of the Year” at the Bloomberg UTV Financial Leadership Award 2011

About YES Bank

9M FY 2011 :9M FY 2011 :

Balance Sheet : $11.68 BnBalance Sheet : $11.68 Bn

PAT: $ 117.10 MnPAT: $ 117.10 Mn

ROA: 1.5%ROA: 1.5%; ; ROE : 21.3ROE : 21.3% %

Branches :Branches : 214 214

ATM’s :ATM’s : 236 236

Thank You