Finly February 2023

Dear Readers,

“Historically, pandemics have forced humans to break with the past and imagine their world anew. This one is no different. It is a portal, a gateway between one world and the next. We can choose to walk through it, dragging the carcasses of our prejudice and hatred, our avarice, our data banks and dead ideas, our dead rivers and smoky skies behind us Or we can walk through lightly, with little luggage, ready to imagine another world. And ready to fight for it.” -

Arundhati Roy

This pandemic is an opportunity to expand our knowledge by finding new ways to circumvent the circumstances, invest in the most intuitive ideas that come to our mind and surpass this havoc. As Ben Franklin rightly said, “An investment in knowledge always pays the best interest,” we at Finstreet are back with the next edition of our monthly magazine “Finly” for the academic year 2022-23

Team FINLY has always been a dedicated group of people who put in a lot of time and effort to put this magazine together, and we can't thank them enough for their unwavering support and initiative

The February 2023 edition's cover story revolves around "Dhoot & Kochhar Fiasco". The Eco Section discusses "TRIPS Waiver". Further, the Intriguing Indeed section delves into "Wells Fargo - Fake Account Scam"

We are thankful to Prof. (Dr.) Pankaj Trivedi (Course Coordinator, MBA Core and Faculty Coordinator, Finstreet) for providing the much-required mentoring, support and backing to the Finly team

HAPPY READING!!!

TEAMFINLY

Faculty in-charge

EditingTeam

Editor-in-Chief Editor - FINLY

TeamCoordinator

Conceptualization&Design

Gaurav Bavkar

Dr. (Prof) Pankaj Trivedi

Moumita Biswas

Siddharth Suman

Saumya Nair

Siddharth Suman Vigneswaran S

ContentTeam

Trisha Jain

Jaykaran Mehta

Samyak Tripathi Ayushi Sharma

Riya Jain

Pankhuri Jaiswal

Kashish Khanduja

Manthan Jain

Sakshi Pandya

KashishKhanduja|MBA4|2022-24

ManthanJain|MBA7|2022-24

The ICICI Bank-Videocon case is one of the most significant frauds the Indian banking industry has ever encountered; this led to the downfall of Chanda Kochhar, who began her career as a junior officer and ascended to become the bank's CEO The case involves claims of a quid-pro-quo arrangement between the Kochhar family and the Videocon corporation

Mrs Chanda Kochhar was the head of the ICICI bank and was formerly lauded for her role in shaping the retail banking sector and establishing ICICI Bank in the 1990s However, she was caught in a nepotism scandal and conflict of interest involving a ₹3,250 crore Videocon Group scam. The scam centred on a loan given by ICICI Bank to the Videocon group as part of a State Bank of India (SBI)-led consortium in 2012 and the change of ownership in a company called NuPower Renewables Pvt Ltd , which was a joint venture between Chanda Kochhar's

husband Deepak Kochhar and Videocon's Venugopal Dhoot

THE CASE

Deepak Kochhar and Chanda Kochhar were probed after Deepak Kochhar's NuPower Renewables received ₹64 crore funding from one of Venugopal Dhoot's companies in the form of unsecured fully convertible debentures (FCDs), just weeks after the Videocon group received a ₹3,250 crore loan from ICICI Bank During Chanda Kochhar's employment at ICICI Bank from 2009 to 2011, six loans totaling ₹1,875 crores were allegedly sanctioned for the Videocon Group and its affiliated entities. The Enforcement Directorate charged the Kochhar couple, Dhoot, and others with money laundering in 2019.

According to media reports, Venugopal Dhoot invested ₹64 crores in NuPower

DHOOT AND KOCHHAR FIASCO

Renewables through Supreme Energy Pvt. Ltd (SEPL) and transferred SEPL to Pinnacle Energy Trust managed by Deepak Kochhar via an indirect route, and most of the loans made during Chanda Kochhar's tenure became non-performing assets, causing bank a loss of ₹1,730 crore

The CBI claimed that the loan was approved by a committee on which Kochhar served According to the inquiry agency, she abused her official position and received illicit gratification/undue benefit from Dhoot through her husband for granting loans to Videocon In response to the claims, Chanda Kochhar issued a statement saying, "I stress that none of the credit decisions at the bank are unilateral The organization’s structure and design eliminate the possibility of a conflict of interest."

The CBI charged Chanda Kochhar, her husband, Videocon Group CEO Venugopal Dhoot, and companies NuPower Renewables, Supreme Energy, Videocon International Electronics Limited, and Videocon Industries Limited in an FIR filed under IPC sections related to criminal conspiracy and the Prevention of Corruption Act.

TIMELINE OF THE FACTS

2008

December: Deepak Kochhar, V N Dhoot and Saurabh Dhoot were appointed directors of NuPower Renewables (NRL).

2009

January: Dhoot resigned and allotted nearly 20 lakh securities to Deepak Kochhar.

May: Chanda Kochhar took over as ICICI Bank MD and CEO

June: NRL shares held by Dhoot and Deepak Kochhar were transferred to Deepak Kochhar’s company Supreme Energy August: The First Loan of ₹300 crores was given to Videocon International Electronics Limited (VEIL) in contravention of the bank’s rules and policy

2010

March: Supreme Energy, which was 99 99% owned by Dhoot, loaned ₹64 Cr to NuPower. By this time, a series of share transfers from Dhoot to Deepak to Pacific Capital took place to ensure Supreme Energy already owns 94 99% of NuPower with Deepak owning the rest.

November: Dhoot transferred the entire stake in Supreme Energy to associate Mahesh Chandra Punglia.

2012

ICICI Bank sanctioned ₹3,250 crore loan to Videocon.

2012-13

Over a few months, Punglia transferred his

99.9% stake to Pinnacle Energy Trust, where Deepak is reported to be the managing trustee, for ₹9 lakhs only

2016

October: The issue of alleged irregularities in loans came to the light, after a shareholder whistleblower Arvind Gupta, an investor in both ICICI Bank and Videocon Group, raised concerns through a blog Gupta alleged that Chanda Kochhar influenced a ₹3,250 crore loan to the Venugopal Dhoot-led Videocon group in 2012 in return for a deal in NuPower Renewables and Supreme Energy, a clean-energy firm run by her husband Deepak Kochhar. Gupta wrote to the PM and FM His complaint, however, gathers no attention

2017

The Videocon account was declared a nonperforming asset

2018

March: The case again came into the spotlight when another unnamed whistleblower complained against the bank and its top management, including Kochhar, alleging a deliberate delay in recognizing impairment in 31 loan accounts between 2008 and 2016 to save on provisioning costs. These allegations led to probes by multiple agencies, including the CBI, ED, and SFIO, and also questioning of Kochhar family members.

The bank indicated that it had evaluated internal processes for credit approval and 'found them to be solid ' According to the statement, the decision to lend to Videocon Group was made at the consortium level. Despite being a member of the lending committee that approved the loan, Kochhar had no personal stake in it. The bank's board also reaffirmed full faith in Kochhar, dismissing any misconduct on her part and ruling out any 'conflict of interest '

The Central Bureau of Investigation (CBI) filed an initial inquiry The investigative agency later also questioned Deepak Kochhar and his brother Rajiv Kochhar.

April: In defending its CEO, Chanda Kochhar, then ICICI Bank Chairman M K Sharma stated that the board had full confidence in her and ruled out any potential conflict of interest with reference to the loan made to Videocon group

The Serious Fraud Investigation Office (SFIO) sought approval from the Ministry of Corporate Affairs to investigate ICICI Bank's 3,250 crore loan to the Videocon group in 2012.

May: The Securities and Exchange Board of India (SEBI) sent a notice to ICICI Bank CEO and MD Chanda Kochhar about the lender's interactions with Videocon Group and NuPower Renewables, a firm promoted by her husband Deepak Kochhar In response to a 12-page show cause notice imposed on ICICI Bank and Kochhar on May 23, the

market regulator has asked Kochhar and the bank to submit their responses by June 7 The ICICI Bank board started an independent probe.

June: The bank's board of directors appointed retired Supreme Court judge Justice BN Srikrishna to lead the independent panel. ICICI Bank and Chanda Kochhar requested more time for responding to the market regulator SEBI's show cause notice.

July: Kochhar was given until July 10 to respond to the show cause notice on the alleged infringement of listing disclosure rules. Kochhar and the bank missed the June 7 deadline and requested further time to reply to the notification owing to a lack of documentary evidence supporting the charges.October: The ICICI Bank board of directors approved Chanda Kochhar's proposal to retire early The bank stated that the board's investigation will be unaffected and that certain rewards will be contingent on the conclusion of the investigation

2019

January: The CBI filed an FIR against Chanda Kochhar, her husband Deepak Kochhar, and Videocon group MD Venugopal Dhoot in connection with alleged irregularities in bank loans made to the group in 2012

In the Videocon loan case, a panel led by Justice BN Srikrishna determined that Kochhar breached the bank's code of conduct. Following the report, the bank's board has stated that her separation will be treated as a "termination for cause" under their internal procedures

2020

September: The Enforcement Directorate arrested Deepak Kochhar as one of the main accused in the ICICI-Videocon loan case and was booked under the Prevention of Money Laundering Act (PMLA)

2022

December: CBI arrests all three of them Chanda Kochhar and Deepak Kochhar were arrested by the Enforcement Directorate in 2021 as well. The former ICICI Bank CEO got bail in February 2021, while her husband got bail in March 2021

CONCLUSION

This case raises questions about the corporate governance norms at one of Source: The Indian Express

India's largest banks. It is also clear that the issue of poor corporate governance is getting worse, and more concerted action is required to address it. The ICICI Bank case is only one of the many recent examples of corporate governance failures in India The bank seemed to have given the funds intentionally and without paying respect to the standards and regulations, they are required to uphold This emphasizes the significance of regulators maintaining strict oversight over corporate board activities during the period of corporate mismanagement

The effectiveness of corporate governance must be monitored and evaluated from time to time The bank's reputation was damaged by this case, despite the bank having a strong consumer brand.

TRIPS WAIVER

Trisha Jain I MBA 6 | 2022-24

Sakshi Pandya I MBA 2| 2022-24

WHAT IS TRIPS AGREEMENT?

The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) governs international IP rights TRIPS entered into force in 1995 as part of the World Trade Organization agreement (WTO) TRIPS establishes minimum standards for trademarks, copyrights, geographical indications, patents, industrial designs, layout designs for integrated circuits, and undisclosed information or trade secrets It applies fundamental international trade principles concerning intellectual property to member countries.

It applies to all WTO members The TRIPS Agreement establishes the permissible exceptions and limitations for balancing intellectual property interests with public health and economic development interests

TRIPS is the most comprehensive international intellectual property agreement, and it plays an important role in facilitating trade in creativity and knowledge,

resolving trade disputes over intellectual property and ensuring WTO members have the flexibility to achieve their domestic policy objectives It frames the intellectual property system in terms of innovation, technology transfer, and public benefit. The TRIPS Council is in charge of administering and monitoring the TRIPS Agreement's implementation TRIPS was negotiated between 1986 and 1994 as part of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) The TRIPS Agreement is also described as a "Berne and Paris-plus" Agreement.

Intellectual property rights are the rights granted to individuals or organizations for creative innovation. These rights typically give the creator an exclusive right to use his or her creation for a set period Intellectual property is well established in India at all levels-statutory, administrative, and judicial. This Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement entered into force on January 1, 1995

It establishes minimum standards for intellectual property rights protection and enforcement in member countries, which are required to promote effective and adequate intellectual property rights protection in order to reduce distortions and impediments to international trade

The TRIPS Agreement imposes obligations on member countries to provide a minimum level of protection within their legal systems and practices.

HISTORY

It is crucial to review the events leading up to the WTO's establishment in 1995 and how it has operated in order to comprehend better arguments for a global IP waiver in the instance of COVID-19 items.

Transferring technology and intellectual property between the global North and South is not a new problem The necessity to catch up technologically with the industrialized global North as a method of economic transformation and to establish self-sufficiency was a top objective as numerous new nation-states began obtaining independence from crumbling European empires in the 1950s However, there were one-sided agreements for the transfer of technology from international firms to developing nations.

In the end, there was virtually little technology transferred or local capacity built, which led to these nations becoming

victims of "technical colonialism." In order to bridge the technological divide and fight the IP systems that impeded their progress, the G77 resorted to the UN General Assembly for assistance.

The Declaration on the Establishment of a New International Economic Order (NIEO), which was adopted by the UN General Assembly in 1974, stated that the North would assist formerly colonised nations in becoming more independent through the transfer of technology. However, the call for an NIEO was rejected by the global North, with the US, in particular, refusing to give up on the enforcement of patent rules.

In 1995, the global North countries forced TRIPS through against the opposition of several Southern countries, and it became law. While the agreement safeguarded the corporations and investments of the countries in the global North, it also barred those in the global South from competing on an equal basis in the burgeoning knowledge economy Even in cases where they may not have done so before, the Agreement compelled WTO member states to establish a minimum degree of protection and enforcement for all categories of IP.

TRIPS SIGNIFICANCE

The TRIPS Agreement incorporates intellectual property rights protection into the multilateral trading system embodied in

the WTO. The agreement is frequently referred to as one of the WTO's three

"pillars," the other two being trade in goods (the traditional domain of the GATT) and trade in services Prior to TRIPS, the extent to which IP rights were protected and enforced varied greatly across nations, and as intellectual property became more important in trade, these differences became a source of tension in international economic relations.

TRIPS WAIVER

In light of the COVID-19 pandemic, India and South Africa proposed to the World Trade Organization in October 2020 that the TRIPS Agreement (which included patent protection for pharmaceutical products, including COVID vaccines) be waived for COVID vaccines, medicines, and diagnostics for the duration of the pandemic in order to make COVID vaccines and drugs available to the greatest number of people worldwide

If vaccines are patent protected, only a few pharmaceutical companies from developed Western countries will be able to manufacture them, rendering such drugs unavailable or inaccessible to people in other countries, particularly developing and least developed countries, due to high costs.

The US, which had previously opposed any TRIPS waiver, has joined the EU in supporting this proposal. Many people applauded this decision because it could lead to the production of more COVID vaccines, allowing the entire world to be free of the coronavirus as soon as possible. However,

pharmaceutical companies have objected to the move, claiming that it will not necessarily ensure vaccine availability because developing countries lack the capacity to produce the vaccines.

This argument rehashes the tired trope that producers in the developing world are either unable to build complex technologies or their products are of poor quality However, enough proof has emerged over the last two years to demonstrate that this claim is unpersuasive. Now, producers in China, India, Thailand, and Vietnam are working on their own mRNA vaccines

As a result of the World Health Organization's Access to COVID-19 Tools (ACT) Accelerator and financial support from Unitaid and the Foundation for Innovative New Diagnostics (FIND) and partnerships with manufacturers in China and Brazil, local production of COVID-19 rapid tests has increased in Africa and Latin America

A broad IP waiver may encourage other nations and firms to invest in building their own production capacity and capabilities, which would help with both the current pandemic and any other in the future. The World will be unable to decentralize supplies, satisfy global demand for this pandemic, and become ready for any future ones unless the IP monopolies that currently prevent vaccine, treatment, and diagnostic development and manufacture in other nations are unlocked

IT SECTOR

EDUCATION

JaykaranMehta|MBA6|2022-24

AyushiSharma|MBA5|2022-24

OVERVIEW

The Indian IT services industry has existed since the very beginning of the postindependence period As you can see, businesses like Infosys and Tata Consultancy Services were founded in 1968 and 1981, respectively. However, at that time, there wasn't much contribution The Indian economy then began to open up in 1991, allowing for the entry of international businesses. Additionally, it gave Indian IT service providers access to a global clientele Indians quickly rose to the top of the list of preferred locations for outsourcing IT labor.

The Indian IT sector is a major contributor to the country’s economy, with a large number of multinational and domestic companies operating in the space. Some of the key strengths of the industry include a large pool of highly skilled and English-speaking professionals, a strong education system, and a relatively low cost of labor.

By the early 90s, US-based companies began outsourcing and since then, the Indian IT industry gained pace and earned a distinct place for itself. Today, the Indian IT industry accounts for nearly 35% of the total industry revenue The IT-BPM industry contributes about 7.4% to India’s GDP., and by 2025 this number is expected to grow to 10%. As of FY22, it is the largest private sector employer employing over 5 million professionals, and contributes 51% to overall services exports. The industry witnessed revenue growth of 15 5% as it touched US$227 billion in FY22

The growth of the IT industry in India is unprecedented across the economies of the world All the sub-sectors of this industry (hardware products have relatively seen less progress) have made strides in revenue growth in the last two decades and fueled the growth of the Indian economy The rapid advancement within the IT industry and liberalization policies such as reducing trade barriers and eliminating import duties on

technology products by the Government of India are instrumental in the growth of this industry Also, various other government initiatives like setting up Software Technology Parks (STP), Export Oriented Units (EOU), Special Economic Zones (SEZ), and foreign direct investment (FDI) have helped this industry in achieving a dominant position in the world IT industry.

PORTER'S 5 FORCES MODEL Industry Rivalry

The industry experiences high rivalry among existing competitors. The existence of small and mid-sized firms has caused increased competition and also increased innovation

There are only a few significant IT services organizations, and competition exists between them for business transactions, market share, and bottom line In some ways, the intense competition within the industry has aided in the expansion of the Indian IT services business by fostering innovation and encouraging companies to develop novel solutions

Threat of New Entrants

Threat of new entrants is low in the industry as setting up an IT company is fairly simple due to low capital requirements and less regulatory oversight. Although these firms operate in a very specialized industry, startup culture still exists These firms operate in fields including fintech, agritech, and deep neural networks. So in a manner,

the big businesses have built a barrier to entry that makes it challenging for any newcomer to enter and take the project

Threat of Substitutes

There is a significant likelihood of substitution in the current economic climate when the economies of the globe are slowing down Other developed nations' economies, including the Philippines, are competing for international IT services contracts since they can do the task for less money than Indians can

You may also believe that the businesses that are awarding projects to the Indian IT services sector may perform a backward integration and establish their own IT solution business.

For instance, IBM, Accenture, and other organisations now brag about their IT solutions division despite once being predominantly consulting firms They both have offshore facilities to serve the entire planet Other countries have started expanding their IT sectors as the availability of cheap and English-speaking professionals increases across Asia

Bargaining Power of Suppliers

Vendors for the industry include third-party software vendors and hardware suppliers. Vendors have high bargaining power due to the unique nature of their software. Hardware suppliers have low bargaining power as IT companies place large orders and the switching costs are low.

Bargaining Power of Customers

Customers have high bargaining power as they can switch among different companies at a very low cost. Although many companies choose multiple IT service providers for different aspects of their business

MAJOR PLAYERS

TCS

Headquartered in Mumbai and part of the Tata Group, Tata Consultancy Services (TCS) operates in 150 locations across 46 countries. It is the 2nd largest company by market capitalization in India. In FY22 its revenues grew by over 16% to Rs 191,754 crores

Infosys

Infosys was founded by 7 engineers in Pune in the year 1981 It is the second largest IT services company in India after TCS and generated revenues of Rs 121,641 crores in FY22 About 62% of its revenues come from North American Markets

HCL

Founded in 1976 by Shiv Nadar, HCL is another big player in the Indian IT industry. The company provides a range of services, including software development, IT consulting, infrastructure management, and business process outsourcing. In FY22, it generated revenues amounting to Rs. 85,651 crores

GROWTH DRIVERS

The cumulative investment in a data center in India is expected to reach US$ 28 billion between 2019-25, at a CAGR of 5%, twice the pace of the global average as digital transformation accelerates across sectors in the last few years. In October 2022, PE/VC investments in technology sector stood at US$ 157 million across 12 deals The industry is also about to witness non-linear growth due to platforms, products and automation opportunities. Emerging verticals like healthcare, retail and utilities are also expected to drive growth Expansion across new geographies including BRIC nations, continental Europe, Canada and Japan will be key as well The rollout of fifth generation (5G) wireless technology by telecommunication companies is expected to bring at least US$ 10 billion global business to Indian IT firms

1.

CHALLENGES

The sector heavily relies on the US & UK for business, as such any changes in the Economic and political environment of these countries can have a detrimental impact on the business of these firms

Table

Worldwide IT Spending Forecast (Millions of U.S. Dollars)

Forex risk is another challenge as most of these firms generate a majority of their revenues in foreign currencies, fluctuations in forex can cause changes in revenues and profits

The industry is facing a shortage of skilled professionals, leading to high turnover rates and difficulty in retaining talent. The industry is also facing competition from other countries including China, as they’re investing heavily in technology and developing their own IT sector.

Apart from that many mid and small sized IT firms are facing difficulty in scaling their operations to meet demands of large global clients

PIDILITE

TapanShah|MBA8|2022-24

SamyakTripathi|MBA1|2022-24

COMPANY OVERVIEW

Balvant Parekh founded Pidilite Industries Limited in the year 1959 The company is a well-known Mumbai-based manufacturer of adhesives. The business initially only sold one product and specialised in adhesives.

However, it has diversified over time and established a strong presence in other industries, including those of art supplies and stationery, food and fabric care, automotive products, and sealants, as well as speciality industrial goods like adhesives, pigments, textile resins, leather chemicals, and construction chemicals.

Fevicol and Fevi-Stik are well-known products made by Pidilite. FeviKwik, Dr. Fixit, Roff, Cyclo, Ranipal, Hobby Ideas, M-seal, and Acron are some of the additional brands it carries Crayons, oil pastels, markers, brushes, glass colours, acrylic colours, and more are produced and manufactured by the company under the category of art supplies and stationary

Pidilite offers solutions for waterproofing, repair materials, painting, flooring, sealants, and admixtures under the heading of construction chemicals. The company also produces items like starch, brightener, stain remover, and whitener, and it sells these items under the brand name Ranipal.

M B Parekh is the Executive Chairman, A B Parekh is the Executive Vice Chairman, N K Parekh is the Vice Chairman, and Bharat Puri is the Managing Director of the company

SHAREHOLDING PATTERN

As of 31st December 2022, Pidilite Industries’ shareholding pattern comprised promoters holding 69.93%, unchanged from the previous quarters The FIIs reduced their holdings from 11.34% to 11.08% quarter-onquarter

Meanwhile, the DIIs have shown confidence in the growth story and have picked up the mantle They marginally increased their shareholding to 8.12% from 7.73% in the last

Source: Screener

quarter. The government’s share remained at nil. Retail investors also reduced their stakes marginally as they decreased their stake from 10 98% to 10 85%

Pidilite Industries’ total expense fell from INR 2,632 95 crores to INR 2,574 92 crores which translate to a 2 20% drop in the expenditures when compared quarter on quarter. The firm registered a slight decrease in the EPS figures as well The basic Earning Per Share is now INR 6 54 compared to INR 6.96 following the end of the June 2022 quarter.

FINANCIAL ANALYSIS

Source: Screener

The revenue from operations for Pidilite Industries Limited for the quarter that ended in September 2022 was INR 3,022.13 crores compared to INR 3,111 79 crores for the quarter that ended in June 2022, which amounted to a 2.88% decrease in revenues.

The company also reported a minor dip in net profit as well when compared on a quarter-on-quarter basis The profit after tax fell from INR 332.44 crores in June 2022 to INR 353.61 crores for the quarter that ended in September 2022, which translates to a decrease of 5 99%

Pidilite being a major player in the adhesives segment, the firm is focused on being the bellwether. The firm may achieve better stability moving forward with stability in the rates of crude oil and with wider consumer acceptance towards its diverse set of new products; the company will be hoping to do better moving forward

KEY DRIVERS

Due to Pidilite Industries’ robust product lineup, emphasis on innovation, expansion of distribution, and effective marketing, it has seen greater growth than the industry Additionally, it has established a vast panIndian distribution network with more than 4700 distributors.

Consumer & Bazaar, the company's flagship division, keeps the company's growth momentum going. As a consequence, YoY revenue growth in the fiscal year 2023 is anticipated to be between 11 and 12%, helped in part by an increase in consumer demand and the resurgence of the real estate sector.

A solid net worth of Rs 5402 crore (adjusted for goodwill and trademark amortisation) as of March 31, 2022, and gearing of 0 05 times characterise the financial risk profile Debt protection indicators are excellent, with net cash accruals to total debt at 3.53 times and interest coverage of around 45 times.

In FY22, raw materials made up 62% of the cost of sales The company's operating margins in fiscal 2022 and the first quarter of 2023 were also impacted prices by rising costs for raw materials such as VAM, resins, and other goods, which can happen again also.

20.3%. They also have presence in segments like art and craft material, industrial adhesives, pigments and preparations, industrial resins and construction pigments, etc.

The company is huge in India, and at the same time, they are making its name internationally also. As they have operations in countries like Bangladesh, Dubai, Sri Lanka, the USA and Egypt etc

OUTLOOK

Pidilite Industries is the pioneer in the adhesive industry in India. It is no. 1 in India with a market capitalisation of ₹ 124699 Cr. as of 19th Jan 2023.

Pidilite Industries have a really good hold on the market, with 79 6% of their business coming from the Consumer and Bazaar product segment, 19 7% of their business coming from B to B segment and the rest from others.

Pidilite Industries have decent diversification, but its majority of business comes from the adhesive and sealants segment, which is 53 4%, and this is followed by construction and paint chemicals, with

COMPETITOR ANALYSIS

As per the above table, we can see that Pidilite Industries is a market leader with sales worth 8340 17 Cr for FY 22 Godrej Industries follows it with sales worth 3339.6 Cr. The difference between them is about 5000 Cr

We can also see that in terms of net profit and net profit margin also, Pidilite Industries is at the top with a net profit worth of 1268 62 Cr and a net profit margin of 15.21%.

Source: Annual Report

In terms of net profit margin, after Pidilite Industries comes Vishnu Chemicals with a net profit margin of 7 20%

Godrej industries which was just behind Pidilite industries in terms of revenue is really struggling with a negative net profit margin of -1.32%.

Nowadays, the demand for products like adhesives is not only limited to one or two industries; their demands have reached industries like the automobile and also the medical sector as the use of adhesives in stitches This will lead to a positive influence on its sales and profit

Source: Moneycontrol

FUTURE OUTLOOK

The future of the company is looking quite promising because of the following reasons

With an increase in demand for packaged food and an increase in demand for food delivery which requires packaging will have a positive impact on the adhesive industry. Being the market leader in this segment, this will positively affect Pidilite Industries’ revenue and profit

Currently, most of the world is experiencing a rapid rise in modernisation and urbanisation. This urbanisation is giving rise to the realty sector In the future, it might also experience a boom and will again positively impact the Pidilite Industries as there will be demand for their products

WELLS FARGO FAKE ACCOUNT SCANDAL

LITIGATION FINANCING

Ishan Khare | MBA 10 | 2022-2024

INTRODUCTION

In a poor economy, the American financial company Wells Fargo was outperforming the competition. The bank purchased Wachovia during the 2008 financial crisis and advanced to the third-largest bank in terms of assets in the United States. A few years later, the company's valuation had increased to around $300 billion as a result of its escalating revenue and surging stock

But this achievement was concealed by a corporate culture that encouraged employees to set up false accounts in an effort to meet unrealistic sales targets Company staff may not have had consumers' permission to open more than 1 5 million bank accounts and apply for more than 565,000 credit cards between 2011 and 2015

CAUSE

Corporate managers at Wells Fargo bank started encouraging branch staff to participate in aggressive "cross-selling" in the early 2000s, which involved pitching

the early 2000s, which involved pitching consumers on a variety of financial services like bank accounts, credit cards, or overdraft protection services.

Employees were frequently badgered about their progress and faced sales objectives, many of which were extremely difficult to reach. Failure to achieve these quotas had severe repercussions, including official reprimands and even termination

The scandal began when lower-level employees started to experience intense pressure from their superiors to increase sales, sign up more individuals for credit cards, and register more accounts. However, the staff believed it to be physically impossible because some households did not need a large number of accounts and credit cards.

Toxic "pressure-cooker sales culture" was fostered by the company, and top-down pressure started to greatly impact what the company was trying to do. Employees were

penalized by being required to work overtime or even having their pay withheld for failing to fulfil inflated sales goals. The staff members strove to keep up, but the unrealistic expectations drove them to desperation, which led to unethical activity and, finally, the biggest scandal in banking history

Just opening accounts unethically was the norm. A former employee who wishes to remain unnamed recalls, "We just did it because that's what we were instructed to do.”

FRAUD

To prevent clients from noticing the fraud, employees were instructed to order credit cards for pre-approved customers without their permission and to fill out requests using their own contact information

Employees also opened bogus checking and savings accounts, a process that occasionally entailed the movement of money out of legal accounts. These new goods were produced in part thanks to a procedure called "pinning." Bankers were able to manage client accounts and sign them up for services like online banking by setting the client's PIN to "0000".

Employees used enrollment of the homeless in fee-accumulating financial products as one of their quota-meeting strategies. Expectations were not changed even after employees complained to managers about unmet goals and unacceptable behaviour

Even after reading the Loas Angeles Times Piece, the bank undertook minimal effort to change the company's sales culture.

Despite allegedly implementing improvements, the bank was hit with a $185 million penalty in early September 2016 as, between 2011 and 2016, about 1,534,280 unlawful deposit accounts and 565,433 fraudulent credit card accounts were opened. Later calculations, made public in

May 2017, put the overall number of bogus accounts closer to 3,500,000.

It was discovered in December 2016 that bank staff had also sold illegal insurance plans. Among these were Assurant renters' insurance policies and Prudential Financial life insurance policies The fraud was discovered by three whistleblowers who were Prudential employees. Later, Prudential fired these workers and hinted that it would sue Wells Fargo for compensation

Source : The Wall street Journal

AFTER EFFECTS AND LEGAL ACTION

Wells Fargo agreed to pay $3 billion to settle criminal charges and a civil action stemming from its widespread mistreatment of customers in its community bank over a 14year period.

CURRENT SCENARIO

Since the incident, Wells Fargo has worked to make up with its customers and rebuild its reputation so that it may continue to be one of the biggest banks in the United States.

Some of the actions taken included being more honest with their clients, alerting them whenever a new account was opened in their name, and relieving staff members of the burden of hitting ambitious sales goals

Rebuilding trust with customers and team members was their top focus, according to a Wells Fargo spokesperson The bank also intends to make amends with anyone harmed by the crisis, despite the fact that it was subject to a dozen investigations and active legal proceedings

This case illustrates a complete failure of leadership at multiple levels within the bank,” Nick Hanna, U S attorney for the Central District of California, said in a statement.

“Wells Fargo traded its hard-earned reputation for short-term profits, and harmed untold numbers of customers along the way. ” The bank had to establish a $500 million fund as part of its agreement with the S E C to make up for investors who suffered because Wells Fargo neglected to warn them that its community banking operation was not as robust as the bogus accounts made it look The settlement sum of $3 billion includes these funds.

“Wells Fargo is committed to putting our customers’ interests first 100 per cent of the time, and and we regret and take responsibility for any instances where customers may have received a product that they did not request ” stated the bank in a news release following the scandal

Former CEO John Stumpf resigned before the court hearing, and the bank released its staff from the pressure to achieve overly ambitious sales targets. According to Bloomberg Markets and Finance, Wells Fargo has had two CEOs since the fallout from the events, with Charles W Scharf serving as the company's current CEO.

Source: Forbes

Eight former Wells Fargo officials were charged with criminal offences by the Office of the Comptroller of the Currency, the bank's primary supervisor. CEO John Stumpf accepted a seventeen million dollar punishment and was banned from the banking sector.

As a result of the bank's settlement with federal prosecutors and the Securities and Exchange Commission over the abuse of consumers, the cost of the scandal increased by $3 billion.

CONCLUSION

This controversy should serve as a warning to company executives and anybody else in a position to make choices that have an impact on the lives of others

It emphasises the value of transparency, stressing the need for an honest and open relationship with your consumers. Transparency favours vulnerability, which enables firms to strengthen customer loyalty and operate more personally.

Additionally, it promotes accountability and acknowledges that leaders can make mistakes, just like anybody else in a company, but that the best way to maintain a reputation is to take responsibility for one's actions

Any effective partnership is built on trust. Customers shouldn't have any doubts about the company, and executives should gain the trust of their clients by conducting honest business

Revolut is a provider of financial services with a focus on foreign exchange, money remittance, card payments, and mobile banking. The business provides multicurrency cards and a mobile app with options for peer-to-peer payments, bank transfers, and currency exchange. Additionally, it provides commercial and personal financial services Users may budget and analyze their spending, use open banking, swap currencies at interbank rates, and track their money in real-time using Revolut's platform Additionally, the business offers investment, security, foreign transfers, insurance, and cryptocurrency exchange services. Freelancers, small and medium-sized businesses, people, and corporate clients are all served by Revolut It operates in North America, Europe, and the Asia-Pacific region. Revolut's headquarters are in London, United Kingdom In July 2015, Nikolay Storonsky and Vlad Yatsenko established the business

More than 150 million transactions are made

each month by Revolut's consumers throughout the globe using dozens of their cutting-edge products. With both personal and commercial accounts, Revolut gives users greater control over their finances and provides seamless global connectivity

VISION

Revolut's vision is to build a sustainable, digital alternative to traditional big banks.

MISSION

Revolut's mission now is to help their customers improve their financial health, empower them to have more control, and promote financial cohesion across the communities in which they operate.

WHAT IT OFFERS

Revolut's mission has always been to "provide a fair and seamless platform to use and manage money globally." Basically,

Pankhuri Jaiswal | MBA 10 | 2022-2024

it serves as a banking substitute for individuals and companies

Revolut decided to do that business only after learning it It now provides fee-free global spending at the interbank exchange rate as well as free international money transfers.

Revolut now functions as a multi-currency card with a mobile application. According to the business, opening an account with them takes just 60 seconds

A Revolut account allows you to:

Hold 25 currencies and exchange via the app

Send free money transfers both domestically and internationally. Spend overseas with a contactless MasterCard or Visa and pay no fees in over 130 different currencies. Free foreign ATM withdrawals up to £200 per month; 2% cost beyond that

It also provides:

Budgeting controls, spending classification, and immediate spending notifications

Improved security with the option to enable/disable swipe payments, contactless purchases, etc

Travel health insurance and device insurance.

Worldwide instant credit to your account in 2 minutes

'Premium' accounts also get access to special card designs, international health insurance, airport lounges, and round-theclock service.

Allowing consumers to purchase, retain, exchange, and transfer (internally) bitcoin, Litecoin, and Ethereum is one of Revolut's most recent initiatives It offers corporate cards for employees to use abroad, separate EUR and GBP IBANs for businesses, and open API to automate payments and (potentially) integrate platforms like Xero and Stripe These services are intended specifically for business accounts. The business intends to offer merchant accounts in the future

ADVANTAGES OF REVOLUT

The balance can be automatically converted from one currency to another without incurring exchange fees (at the real exchange rate)

The biggest savings in exchange rates are within the app itself That is, imagine that you are going to travel, before withdrawing money you must convert the amount you want to withdraw, from euros to the currency of that country, for example, dollars Only then you should withdraw from an ATM. In this case, you will save a lot of money just by the exchange rate used Money can be withdrawn without first exchanging it on the app because it is handled automatically as needed. Of course, if the exchange rate had

deteriorated in the interim it would have ||||been more advantageous to complete ||||the exchange earlier, through the app ||||However, if the currency conversion rate ||||is going in your favour, the later it is ||||completed, the less money is spent (and ||||the later it is possible when the card is ||||passed).

Fees and commissions on purchases, national and international transfers, and transactions between various currencies are free. Make free withdrawals from ATMs overseas

Immediately lock and unlock the card through the application in the event of loss or theft.

In the event of loss or theft of the card while traveling, you can request a duplicate be sent to the location where you are now located. Instant transfers are made between Revolut accounts

DISADVANTAGES OF REVOLUT

Depositing money into your Revolut account through bank transfer can take up to three days, and depending on your bank, there might be fees involved. Money transferred internationally by bank transfer may take two to three business days to become available.

The free account has a withdrawal cap of 200 euros, the premium account a cap of 400 euros, and the metal account a cap of 600 euros. 2% of these values are charged as a fee (although this is less than what other banks charge)

Although it is not necessary to speak fluent English (the company already has a Portuguese version of the application), you still need to be ready to contact a customer care line in English if something goes wrong

ARE INDIAN RUPEES SUPPORTED FOR SPENDING?

You can use your Revolut card to make purchases in INR, but you are unable to store the money in your account. This means that before your travel, you cannot use the Revolut app to exchange currencies and top up your balance in the local currency. Instead, at the time of purchase, the Revolut card automatically converts your pounds to rupees Thus, every time you make a purchase, the currency is immediately changed from GBP to what Revolut refers to as a "settlement currency "

CONCLUSION

Revolut is a pretty solid product all around In conclusion, Revolut has created a banking app that is functionally rich, highly secure, and accurately satisfies the essential needs of its consumers The software has generally been successful in providing appropriate answers to the numerous challenging questions posed to it, while there are some possible areas for improvement Other banking and payment apps can turn to Revolut as a reference point for future development because of its qualified similarities

LTCM CRISIS

RiyaJain|MBA9|2022-2024

Abhigyan Verma| MBA 3 | 2022-2024

WHAT IS BLACK MONDAY?

“Black Monday” – as it is referenced today –took place on October 19 (a Monday) in 1987. When discussing the abrupt, unprecedented stock market meltdown that took place on Monday, October 19, 1987, it is frequently referred to as "Black Monday." The day is also known as Black Tuesday in Australia and New Zealand due to the time difference The U S stock market experienced its largest single-day percentage decline on this day. Almost 23 major stock markets throughout the world saw a decline in the value of their stocks, which resulted in a huge loss for investors everywhere.

One of the most well-known stock market indices is the Dow Jones Industrial Average (DJIA), which tracks the daily stock market activity of 30 publicly traded American businesses listed on the NASDAQ or the New York Stock Exchange (NYSE) The Dow Jones Industrial Average (DJIA) dropped a little more than 22%, similarly the S&P 500 Index

experienced a 20 4% loss To put Black Monday's severity into perspective, the biggest one-day decrease in the DJIA during the 1929 stock market crash was just over 12%, or just over half of the decline that took place on Black Monday in 1987

Source: Saralgyan

WHAT CAUSED BLACK MONDAY IN 1987?

There are many assumptions that revolve around the theory of Black Monday and it’s causes. According to many market observers, the Black Monday crisis of 1987 was primarily caused by a robust bull

BLACK MONDAY – 1987

market that was ready for a significant correction Since its inception in 1982, a significant bull market had been in place for five years, during that time there had been no significant price corrective pullback. Prior to the Black Monday crisis, the value of stocks had more than tripled over the previous four and a half years, jumping by 44% in 1987 alone.

Computerized trading has been identified as the other offender who contributed to the terrible crash. Midway through the 1980s, computer trading, or "programme trading," was still a relatively new concept Brokers were able to place larger orders and complete deals more quickly because to the usage of computers Additionally, stop-loss orders were programmed into the software created by banks, brokerages, and other companies to automatically sell out positions if stock prices dropped by a specific percentage

On Black Monday, automated trading systems precipitated a domino effect that accelerated the rate of selling as the market fell, further contributing to the market's decline. The initial losses caused an avalanche of selling that caused stock prices to fall even further, which in turn led to other rounds of computer-driven selling

"Portfolio insurance," which was also a relatively new occurrence at the time, was a third cause of the catastrophe Large institutional investors engaged in portfolio insurance by taking short positions in S&P 500 futures to partially protect their stock

holdings. This triggered a similar domino effect as the stock market fell, which led to a rise in short selling in the futures market, which in turn led to additional investors selling stocks and shorting stock futures.

IMPACT OF BLACK MONDAY

Black Monday had severe impact on top players of the World This disaster had the greatest impact on Hong Kong, where the value of the stock market fell by 45.8%. On the first day, there was a 14.9% fall in the Tokyo market In addition to New York's $500 billion and Japan's $421 billion losses, the world suffered losses totalling $1 7 trillion

Black Monday served as a harsh reminder of how intertwined and dependent the world's financial systems had grown The Financial Times 100 Index in London fell by 25% between October 19 and October 23 and trading was compelled to halt at the Chicago Board Options Exchange and the Chicago Mercantile Exchange.

Source: The Guardian

Aside from Sydney, stock exchanges in Hong Kong, Frankfurt, Amsterdam, Mexico City, and

other cities also suffered significant losses

The crash almost prevented Goldman Sachs from serving as the lead underwriter in the United States for the selling of the UK government's interest in British Petroleum

THE AFTERMATH

"Circuit breakers" were created and put into use as a major result of the Black Monday catastrophe. The circuit breaker system is intended to try and prevent a market panic where investors just start hastily dumping away all of their holdings This would give investors some time to collect their thoughts and, ideally, take the time to make thoughtful trading decisions, preventing a panicked sell-off of stocks

JAM TRINITY: INDIA'S GAME CHANGER

How many of you are familiar with the 2021 launched RBI’s Financial Inclusion Index? Also, did you know that, as of August 2022, there has been an improvement in the Financial Inclusion (FI) Index to 56.4 from 53 9 in 2021? What does this depict?

As we progress towards becoming a $5 trillion economy, we should be aware as of how financial inclusion has helped, is helping, and will help us reach our target Needless to say, financial inclusion takes a major place in one of the 17 UN Sustainable Development Goals Confused?

Not to worry, you have picked the right article, which will help you get rid of all these jargons and understand the factors that have led to this improvement

It seemed to be a ray of hope for the Indian population when the revolutionary programme by the Government of India,

Pradhan Mantri Jan Dhan Yojana (PM-JDY), was implemented in 2014, with a motive to facilitate the smooth availability of institutional credit services like savings bank accounts, remittance facilities, insurance, and pensions to the vast sections of the disadvantaged and low-income groups, especially rural people, leveraging technology.

Some statistics from the Guinness Book of World Records say, that the number of bank accounts opened in the first week of this scheme was 18,096,130 By June 1st, 2016, over 22 crore (220 million) bank accounts had been opened and ₹384.11 billion (US$5.7 billion) had been deposited under the scheme

30

reached the population earlier. Even though the government’s spending on subsidies contributes to around 4 2% of the GDP, due to the presence of middlemen, intermediaries, fraud, and corrupt officials, these benefits never reached the intended beneficiaries, resulting in the rich becoming richer and the poor becoming poorer This was causing an increase in the wealth disparity.

This is where the JAM Trinity played an integral role in boosting financial inclusion in India. JAM, a model introduced by the Government of India in 2014 that depicts the confluence of J- Jan Dhan Yojana, A- Aadhar, and M- Mobile Number, aided in the integration and smooth facilitation of the Jan Dhan scheme to the population using the Aadhar Card and Mobile Number as modes of communication. And that’s the reason why there has been a buzz around linking the Aadhar card and mobile number for every other scheme announced by the government Earlier, it was only Jan Dhan, but with the implementation of the JAM Trinity, the facilitation of Direct Benefits

Transfers (DBTs) has been possible on a very large scale Needless to say, remember, how the COVID-19 pandemic brought everything to a halt, restricting movement and locking people in their four walls?

In an interview published last year, Finance Minister Nirmala Sitharaman mentioned how the linkage of Aadhar and mobile numbers has helped the government to have a list of the KYC-verified accounts, and not only that, but this has also built up a dynamic and robust structures through which every information relating to the deposits, benefits of various government schemes, and subsidies could be transferred to the population through their Jan Dhan accounts, and that too in regional languages

From the people’s perspective, at one click, sitting at their homes, they have been able to know their account status, LPG subsidies, scholarships and fellowships, farm income support, and many other benefits. According to a source, over Rs 4 3 lakh crore has been transferred, through 477 crores transactions under 319 schemes. The success of the direct benefit transfers is reflected in the huge, estimated savings of Rs 1 8 lakh crore

Through the Aadhaar biometric, it has helped identify the beneficiaries whose numbers are mapped to their bank accounts and understand their eligibility for various government schemes. Along with, the mobile numbers integrated with the Aadhar Card, i e , the Aadhaar seeding with a mobile number, this allowed ease of electronic

Source: PMJDY

welfare payments through the UPI interface available for all mobile phone networks The Center also introduced the JAM Preparedness Index, which ranks countries on their preparedness to implement the use of ID systems, mobile phones, and financial accounts to effectively make government payments.

The JAM preparedness index assesses the state's readiness to implement (i) DBT in urban and rural areas and (ii) biometrically authenticated physical uptake (BAPU) using indicators such as Aadhar card penetration, bank account penetration, and banking correspondents (BC). As per the current status, India and Kenya have topped the JAM index

All these parameters have proven the fact that JAM has been a game changer in the Indian economy, especially during COVID times Through JAM, the government has also been able to leverage the Digital India Campaign and Financial Inclusion Campaign simultaneously As per a report by the Business Standard, India overtook China in receiving the highest number of digital payments. The success of the government's financial inclusion and digitalization initiatives may be seen in the assistance that was provided to individuals under the PM Garib Kalyan package during the epidemic.

Although the figures depict a lot about how the JAM Trinity has proved to be a game changer in the Indian economy, challenges are still ahead of the government in creating systems to improve the digital Infrastructure,

review inactive Jan Dhan accounts, increase financial inclusion across all parts of India, solve problems in biometric identification, and increase the acceptability and discipline of the usage of digital modes of communication among the rural population

Thus, the government with the collaboration of financial institutions and various other key stakeholders, can play an instrumental role in strengthening financial mechanisms and increasing financial inclusion in rural India, which will go a long way in speeding up the process of reaching the $5 trillion dollar economy

RBI'S ACCOUNT AGGREGATOR NETWORK

Mukul | K J Somaiya Institute of Management, Mumbai| 2022-24

The world is witnessing digitalization of the fastest-growing economy, i e , India Remember, we used to carry different ID cards for different purposes or exact changes for shopping. Significant milestones such as Aadhaar, RuPay, and BHIM UPI made it easy, and presently, every industry has been experiencing a significant digital transformation.

It is time for the financial sector to see this revolutionary wave. Imagine how much time and effort could be saved if an individual or small business could send their financial paperwork to a bank by just clicking rather than printing and delivering them. Well, an account aggregator network, a financial data-sharing network, is the key to this lock

It was created through an inter-regulatory decision by the Pension Fund Regulatory and Development Authority (PFRDA), Reserve Bank of India (RBI), Insurance

Regulatory and Development Authority (IRDAI), Securities and Exchange Board of India (SEBI) through the Financial Stability and Development Council (FSDC). An Account Aggregator (AA) is an RBI-regulated entity that shares data between Financial Information Provider (FIP) and Financial Information User (FIU) (Refer to fig.1).

Financial Information Providers are the organization that holds individual data, e g , banks/NBFCs, Mutual Funds house, and Financial Information Users are the organization that needs data to provide customer services, e g , lending agencies, insurance companies, and wealth management organizations. FIU knows that all data transferred through the AAs is legit and reliable AAs cannot share data without the consent of an individual

Electronic consent artefact developed by the Ministry of Electronics and Information Technology (MeitY) takes informed consent,

which also provides information like purpose, data life, frequency of fetching data (one-time or recurring), data fields (bank balance, transaction details), and digital signature.

The architecture of AA is based on Data Empowerment and Protection Architecture (DEPA) framework. A set of open API-based technological standards developed by the Reserve Bank Information Technology Pvt Ltd (ReBIT) guarantees that consent managers, also known as account aggregators, would get information in encrypted form, rendering AAs data-blind and preventing them from leveraging the data. Individuals can share selective information with AAs and can also revoke the shared data at any time Account aggregator is a data-empowered architecture that empowers users.

In the current era, where user ’ s data is sold, it gives full access and authority over data It seeks permission to share minimal information, making it more secure and trustworthy

India is leapfrogging the data protection system, as some parts are in Revised Payment Services Directive (PSD2) in Europe, some are in Open Banking in the UK, and some are in Dodd-Frank Act in the US. Account aggregator network is the foundation stone for introducing open banking in India

are rapidly shifting to digital lending organisations as it is timesaving (Refer to fig 2) However, there are still many manual processes like sharing physical signed copies of bank statements and running around to notarise

Account Aggregator network can replace all these with a simple mobile-based sharing process Most small businesses find it challenging to obtain credit since the application procedure requires much paperwork and time.

However, using AA network, businesses can share their financial data, like bank statements and GST invoices, with banks and ask for credit based on these This will also change the historical method of giving credit based on assets. Cash flow-based lending is the new future as India is moving towards a service economy, and it is also hassle-free for small businesses

So, AAs can make the credit-taking and giving process easy and efficient Registered users can get credits within a few hours It is a win-win situation for banks and customers. Account aggregator network provides real-time, tamper-free data, which eliminates the burden of verifying the data and compliance costs for the borrower

Consumers face many inconveniences in today’s financial system of India Consumers

This also reduces costs like cost of acquisition, Operating Expenditure to Assets, and credit cost Share of these benefits will be transferred to customers by reducing interest rates on loans. Small businesses will join the formal economy to access these

credits at an affordable rate. Cash-flowbased lending also removes bottlenecks and challenges in the way of achieving financial inclusion in India The weaker section does not have collaterals, but they need money.

Therefore, AAs will play a significant role in ensuring that these people have access to financial services and timely financing based on prior cash flows Wealth is also one of the services deeply affected by this network. Nowadays, people have numerous accounts with various banks, making it challenging to gather data from all of these accounts With AA network, customers can give data of all or selective bank accounts to the recipient within a few minutes.

Account aggregator aims to empower the customer and reduce data asymmetry. This ecosystem democratizes the data and helps in transferring the data to its owner rather than holder of the data In transferring the data, several risks exist, such as theft and selling of data, which is a breach of privacy of the user

Account aggregation infrastructure requires constant monitoring and proactive risk management to ensure the security of consumer operations Ever wonder why Google offers mostly female nurse's photos when you search for "nurse"? Artificial intelligence and machine learning come with inherent biases, typically caused by either biased data being entered or biased algorithms.

Source: Statista

Eliminating biases from data and artificial intelligence or machine learning is also a snag in delivering bias free network.

All in all, AA is still at its nascent stage of development. Currently, 116 FIUs and 27 FIPs are registered on the account aggregator network

AAs can be extended to handle data in other domains like healthcare, where individuals can share their medical reports with different hospitals, and in education, degree or certifications can be shared with different colleges. AAs can make India a data-rich country and boost the digital economy With this technology, the country's marginalised groups will be able to access financial services of the same calibre as the wealthy.

About Finstreet

Finstreet, the finance committee of K J Somaiya Institute of Management aims at bridging the gap between industry and academic curriculum through effective delivery of knowledge-oriented sessions and events through a network of highly motivated members and renowned industry experts Through the FINLY magazine, we focus on covering crucial topics for each month and giving our members a platform to express their views.