<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/09/MicrosoftTeams-image-133-1.webp" alt="M2P Fintech" title="" width="100%" height="358">Did you know?52 million data breaches were recorded in the 2nd quarter of 2022 alone. And the average cost of a data breach hit an all-time high of $4.35 million this year.Since the pandemic, people’s social and financial lives have gone digital. More than 2.5 quintillion bytes of data are generated every second across categories and channels. Imagine this quantum of information falling into the wrong hands due to compromised login credentials, phishing attacks, and cloud misconfigurations. It could expose consumers and businesses to financial loss, reputational damage, operational disruptions, and legal repercussions.As data is one of the most valuable assets a financial organization can possess, securing the data environment from the risk of cyber threats, data breaches, and other attacks is critical.So how can financial companies secure their data environment?Using ISMS.<h2 class="heading-node" id="ljb3adzqe" style="text-align: justify">How ISMS enables a secure environment?</h2>Financial organizations need a robust Information Security Management System (ISMS) to avoid threats and secure sensitive data. ISO 27001 &amp; ISO 22301 certifications are imperative to ensure data environments are secure without data exfiltration and unauthorized data manipulation. ISMS compliance prevents financial penalties, reputation loss, and legal and regulatory non-compliance.<h2 class="heading-node" id="8nwndysxz" style="text-align: justify">What is ISMS?</h2>ISMS is a framework that improves data security by protecting all forms of information, viz., digital, paper-based, and other cloud devices. It establishes a systematic approach that maintains an organization’s confidentiality, integrity, and availability.<ul class="list-node" id="pogyjzt23"><li>Confidentiality- ensuring the right access control</li><li>Integrity -keeping data complete and accurate at all times</li><li>Availability -making sure data is accessible anytime as required</li></ul>The ISMS framework comprises policies, processes, and controls that protect organization data and increase attack resilience. Businesses can leverage their risk analysis approach to reduce costs associated with adding layers of defense technology that might not always work.<h2 class="heading-node" id="jmwuobn5t" style="text-align: justify">Avert security threats with ISO 27001&nbsp;standard</h2>Security threats apply not just to IT assets. Non-IT data sets are under significant threat too. Financial companies need to be proactive with ISO 27001 compliance to secure all data assets, manage data privacy and integrity and ensure customer confidence.ISO 27001 is a security management standard that helps an organization manage risk factors that may include procedures, policies, and staff training. The international standard ISO/IEC 27001 comprises guidelines jointly established by the International Electrotechnical Commission (IEC) and International Organization for Standardization (ISO).The ISO 27001 standard relies a lot on regular risk assessments. These assessments ensure that the organization is so prepared and secure, that when threats appear, all the appropriate measures are already laid out. The ISO 27001 standard encompasses deep risk assessment processes, information classification, organizational structuring, monitoring and reporting guidelines, information security policies, and access control mechanisms, among other procedures.<h2 class="heading-node" id="q2yipzw0r" style="text-align: justify">Combat disruptions with ISO 22301&nbsp;standard</h2>In case of untoward incidents and natural disasters, there is often little or no time for businesses to prepare a proper response. This leads to disruption between people, processes, networks, and infrastructure.Financial companies need to combat data attacks during unexpected times to stay out of financial loss, secure customer confidence, manage customer loyalty and operate their business smoothly. This is precisely what ISO 22301 solves for. ISO 22301 mitigates risks and helps an organization tide over vulnerabilities.ISO 22301 is a global standard published by the International Organization for Standardization (ISO) for Business Continuity Management Systems (BCMS). This business continuity management standard helps an organization identify threats, respond to them, and recover quickly with the least disruption to their business.<h2 class="heading-node" id="md4logi7j" style="text-align: justify">Top-notch data security, our priority</h2>Certified under ISO 27001 and ISO 22301 standards, we prioritize data environment security to defend against cyber-attacks, data breaches, and other risks. We are accredited to deliver products that are embedded with top-notch security and operational excellence.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Securing Data Environments with ISMS

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/08/Goutham-Arunagiri_May-Star-of-Month.webp" alt="M2P Fintech" title="" width="100%" height="253">As we continued exploring the stories of different stars at M2P, we stumbled upon another one this month. &nbsp;Give it up for the Star of this Month - Goutham Arunagiri, our very own Senior Software Engineer👏&nbsp;Goutham is a very curious person. You can always find him with his peers learning and exploring to widen his horizons. Starting his career as an electrician, Goutham took a turn to become our favorite tech support avenger at M2P. And yes, he has an inspiring story that he's been keeping to himself. &nbsp;Well, we tried to uncover some from our little chit-chat on his career, interests, and inspirations. So read on as we discover more about our inquisitive M2Peer! &nbsp;<h2 class="heading-node" id="5ev5uinth">How would you start your workday?&nbsp;</h2>First off, I want to thank you all for this wonderful recognition.&nbsp;&nbsp;Coming back to the question, I love starting my workday with heaps of positivity in it. Usually, I go in a placid mode and maintain a calm mindset, ready to embrace the learning every day has to offer. &nbsp;Be it fun or stress, I grab it wholeheartedly and just accept it.&nbsp;&nbsp;That's how it is, my little secret to surviving stressful days, hahaha😊.&nbsp;<h2 class="heading-node" id="suf7g4trd">Can you describe your responsibilities as a Senior Software Engineer?&nbsp;</h2>First and foremost, I need to ensure that the client faces no issues. In case of any technical or server issues, we resolve them at the earliest.&nbsp;The goal is to have ZERO issues at all times. That's my primary responsibility. In addition, I also handle ad hoc requirements.&nbsp;&nbsp;&nbsp;Every day, I challenge myself to identify client issues and enable a smooth and happy transaction journey for them.&nbsp;&nbsp;<h2 class="heading-node" id="pwh7vfbp5">What was your career path before joining M2P, and how has it changed?&nbsp;&nbsp;</h2>As a fresher, I was unsure of my career direction. But, ever since joining the M2P family, my life changed. Learning, exploring, and growing are now my way of life.&nbsp;From being an electrician initially, to learning about Ops and thriving in Tech Support, it is one heck of a journey. &nbsp;<h2 class="heading-node" id="fqvg746ax">How have you grown through the years as an M2Peer?&nbsp;&nbsp;&nbsp;&nbsp;</h2>FOUR YEARS ALREADY! Time really flew.&nbsp;All I can look back to is a lot of learning, growth, and fun. &nbsp;As I said earlier, I was a complete fresher with zero knowledge about the payments industry. My journey started out as an Operational Engineer at M2P, where I initially used to sit with people and observe how things are handled.&nbsp;&nbsp;Thanking my pals and mentors, Preethi Parthasarathy and Vasantha Kumar Jayachandran, for helping me grasp the nuances of the payments industry.&nbsp;I was always curious about Tech Support and wanted to give it a try. When I was fully ready, Muthu and Prabhu gave me the opportunity to move to Tech Support. And here I am, growing my wings at M2P.&nbsp;&nbsp;<h2 class="heading-node" id="s6yqfsxb3">Is there a quote/saying that motivates you?&nbsp;&nbsp;&nbsp;&nbsp;</h2>Yes. There is one.&nbsp;&nbsp;I like telling myself, "Let's face it" (in Tamil, 'PATHUKALAM'). It motivates me to accept anything I'm facing and helps me to get over it.&nbsp;&nbsp;<h2 class="heading-node" id="4475fnppa">What's that one thing your colleagues don't know about you?&nbsp;&nbsp;</h2>Well, surely most of them won't know that I was an electrician. That's how it all started.&nbsp;&nbsp;And I'm also a little chef of my own, who is especially fond of cooking non-vegetarian dishes. &nbsp;<h2 class="heading-node" id="zo6f1iarm">What inspires you the most about M2P?&nbsp;&nbsp;</h2>Wow. There is a lot that inspires me here. Thanks for asking that.&nbsp;&nbsp;Well, can I reveal the secret? It is the PEOPLE, my fellow M2Peers!&nbsp;&nbsp;People are so kind, knowledgeable, and helpful here. Most of my learning outcomes are from the amazing peers I have. &nbsp;Nobody says NO to new learnings! Well, this might be a little confusing, but people will never say no to my questions. They answered them all. For beginners, this is the dream to learn, explore and understand the industry.&nbsp;&nbsp;<h2 class="heading-node" id="8cn1imi1v">What's your idea of a perfect day?&nbsp;&nbsp;&nbsp;&nbsp;</h2>There isn't one. The mantra is to face and resolve every issue in tech support.&nbsp;&nbsp;But wait. There is actually something that could make our days a little more perfect.&nbsp;&nbsp;That's an appreciation from our client.&nbsp;&nbsp;<h2 class="heading-node" id="tv09a0zhf">What are your hobbies/ interests?&nbsp;&nbsp;</h2>I love to travel. And most of the time, I am very fascinated by movies. So watching them on the First Day, First Show (FDFS) makes me feel amazing.&nbsp;&nbsp;&nbsp;I also love playing cricket, indoor games, and spending quality time with friends and family.<h2 class="heading-node" id="5ts8x5dpv">Anything else you want to share about M2P?&nbsp;</h2>M2P is a great place to learn, and it brings out the best in you! There is a lot to learn, share and explore here.&nbsp;&nbsp;A huge shoutout to all the M2Peers out there. Keep rocking you all!&nbsp;&nbsp;&nbsp;Everybody starts from scratch, and everyone has a different story to share!&nbsp;Stay tuned until we are back with an amazing story of another M2Peer next month!<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Catching up with Goutham Arunagiri, our Software Avenger!

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/08/Credit-Underwriting-Blog_1-05-1.webp" alt="M2P Fintech" title="" width="100%" height="529">India's digital lending market recorded a 132% CAGR between 2017 and 2022 and is expected to reach 350 billion dollars in value by 2023. The upswing in the number of consumers using digital avenues for banking proliferated digital loans by 40 to 60%. In today's lending landscape, credit underwriting is fundamental and pivotal in gauging the credibility of the borrower. Assessing credit risk remains the&nbsp;top priority for lenders as it determines the viability and profitability of the business. It helps lenders assess if the borrower can pay back a loan. Although the way lenders evaluate their applicants may vary across products, the basic framework is the same. In this article, let's focus on credit underwriting and how alternate data sources can change the dynamics of the process.&nbsp;<h2 class="heading-node" id="3czmturic" style="text-align: justify">What is Credit Underwriting?</h2>Credit underwriting is a systematic risk assessment method performed to appraise the creditworthiness of a loan or insurance policy applicant. It is a crucial function of banks, NBFCs, and other Financial Institutions (FIs) in the lending business as it helps measure the applicant or borrower's risk profile. Traditionally, Financial Institutions utilize credit reports generated by manually examining customers' financial data from credit applications, credit bureaus (CIBIL), and lender databases. The metrics used to evaluate credit include the source of income, age, number of dependents, bank statements, repayment capacity, past and current debts, health, nature of employment, and other assets. It is essential to note that some loans require an in-depth review of primary data like income and current debt. In contrast, others involve a comprehensive analysis of the applicant's financial history.<h2 class="heading-node" id="4d6gomkwk" style="text-align: justify">Steps in Credit Underwriting</h2>The credit appraisal process differs from product to product and also based on the lender type. Here is a broad overview of the steps of credit appraisal.<ul class="list-node" id="v4vjekojl"><li>Credit Processing – In this stage, the applicant fills out and submits a credit application, either in person or online. Lenders garner all necessary data such as loan details, business or individual information, and primary risk-related information for screening the applications. Each FI has a checklist to validate if all essential information is collected.</li><li>Analysis and Review – The lender scrutinizes the application, analyses the accuracy of the information/documents, and determines the creditworthiness. A credit analyst checks against the RBI defaulter list, CIBIL score, POSIDEX report, and ITR. In addition, the lenders assess the overall political and economic risks and evaluate the financial stability and reliability of the applicant.</li><li>Documentation – From credit application to foreclosure of impaired loan and realization of security, each level in the credit cycle is recorded. The documentation is filed in an appropriate cross-indexing system to facilitate review and follow-up. Moreover, all credit applications must be documented regardless of approval or rejection.</li><li>Approval/Sanction – Each FI has predetermined guidelines on the credit approval process for each product. The credit analyst identifies and measures the credit risk against the guidelines and forwards a recommendation to the approval authorities. The approval authorities examine the request and decide whether to reject or sanction the loan. Typically, authorities deal with new credit approvals, renewals of existing credits, and modifications in the terms and conditions of previously approved credits.</li><li>Credit Administration – In this stage, loan agreements are duly prepared, credit files are updated, and renewal notices are sent methodically. FIs allocate credit administration functions to a designated department or individual in credit operations, depending on the size and complexity of the credit portfolio.</li><li>Disbursement – Once the loan is approved, the letter of offer comprising the disbursal amount and the terms and conditions, etc., is sent to the customer or the borrower. The borrower should duly sign the duplicate copy and return it to the FI. Upon receipt of the letter, institutions proceed with the formalities including final documentation, registration of collateral, insurance cover, and vetting of documents by a legal expert. Before funds are released the borrower must comply with pre-disbursement conditions and the loan must be approved by the relevant authorities in the financial institution.</li></ul><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/08/Credit-Underwriting-Blog_1-01.webp" alt="M2P Fintech" title="" width="100%" height="529"><h2 class="heading-node" id="njesobao5" style="text-align: justify">Shift in the Metrics Matrix&nbsp;</h2>Evolution in consumer behavior and the surge in technology adoption resulted in a paradigm shift in digital credit. This made FIs switch from mainstream practices and adopt innovative approaches to render a faster and seamless borrowing experience. Further, the emergence of fintech and the evolution of Artificial Intelligence and API-enabled services broadened the bandwidth of risk assessment.&nbsp; They included data points from alternative sources that genuinely contribute to determining the quality and value of the loan applications. These data points go beyond the regular financial specifics and dwell deep into customers' buying/spending patterns and behaviors. Such data points obtained from non-traditional sources are known as alternative credit data.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/08/Credit-Underwriting-Blog_1-03.webp" alt="M2P Fintech" title="" width="100%" height="529"><h2 class="heading-node" id="nq0zjxcbu" style="text-align: justify">What is Alternative Credit Data?</h2>The alternative data is a collection of information including a customer's utility, rental, insurance, other bills payment track record, employment and travel history, governmental and e-commerce transactions, and property records. The data points exhibit the customer's habits, preferences, behavior, and character that help lenders better understand an individual's financial reliability and stability.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/08/Credit-Underwriting-Blog_1-04.webp" alt="M2P Fintech" title="" width="100%" height="529"><h2 class="heading-node" id="wu0yr03ef" style="text-align: justify">Why Alternative Data?&nbsp;</h2>Over the last few years, alternative data and behavior metrics have created ripples in the financial sector. However, fintechs and other FIs are just at the tip of the untapped potential of alternative data. Utilizing the correct alternative data and metrics can significantly enhance predictive models such as risk modeling, lead scoring, and fraud detection. Drives Financial Inclusion&nbsp; According to a world bank report, there are 1.7 billion unbanked individuals in developing economies like India, Bangladesh, Pakistan, China, Indonesia, and Mexico. In India, lack of credit scores is the stumbling block to achieving financial inclusion. This is predominantly because most working professionals are deprived of access to financial services due to a low or non-existent credit score. Alternative data sources unlock a gamut of opportunities to empower such consumer groups with economic power. It also serves as a significant value addition to applicants and credit grantors. Alternative sources for data and metrics enable fintechs and NBFCs to tap into the unbanked and underbanked population. The alternative data sources are less susceptible to manipulation, and it serves as a source to score the applicants who are underbanked, credit invisible, or generally labeled 'no-hit' or 'thin-file' by traditional models. The insights from alternative data enhance credit access for such consumer groups, who are usually overlooked. For example, first-time credit card/loan applicants do not have a credit history or background that meets specific criteria. Alternative data points help FIs profile such applicants to process their credit requirements. Augments Business&nbsp; Alternative datasets provide a comprehensive and well-rounded picture of consumers' behavior. This helps FIs make better decisions on who to target and design &amp; develop superior products to ensure a higher adoption rate and sustainability in the market.&nbsp;On the other hand, a more accurate assessment of a consumer's risk status ensures loans/credits are both profitable as well as low-risk. Alternative data enables FIs make the following enhancements and stay ahead of the winning curve.<ul class="list-node" id="q4msu49t5"><li>Boosts business agility and market responsiveness</li><li>Capture new market segments</li><li>Develop competitive interest rates</li><li>Create more tailored products and services</li><li>Identify low-risk candidates for automatic loan pre-approval</li><li>Offer loans and credit efficiently</li><li>Eliminate high-risk applicants by having access to extensive data on risky borrowers</li></ul>Fraud Detection&nbsp; The key source for alternative data is digital platforms that provide information through digital automation. Artificial intelligence (AI), Machine Learning (ML), deep data analytics, and anonymous metadata can help detect anomalies in business operations or an individual's transactions. For example, using AI-enabled tools that employ alternative data, lenders can detect financial fraudsters as early as in the pre-qualification stage.<h2 class="heading-node" id="myayq2dc9" style="text-align: justify">Unlocking Value from Alternative Data</h2>Alternative data is the new oil. Before we know it, most legacy banks will join the bandwagon and include alternative data sets in their standard lending strategies. The key to capturing the value of alternative data is recognizing and analyzing the cost/benefit balance and determining the ideal blend of data sources and their impact on profitability. For more insights on credit underwriting and alternative sources write to us at <a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com</a>.&nbsp; <a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Credit Underwriting - How Alternative Data Sources Help

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/08/MicrosoftTeams-image-6.webp" alt="M2P Fintech" title="" width="100%" height="383">Disbursing salaries to the unbanked and underbanked is a crucial challenge for businesses. Direct debit, paychecks, and demand drafts are clearly not suitable options as their bank accounts are either inactive or non-existent. Though paying in cash sounds easier, it involves immense effort in calculating, withdrawing, distributing, and bookkeeping.&nbsp;Businesses worldwide grapple with the responsibility to pay their underbanked employees on time with utmost security. They leverage digitized payroll cards to optimize salary disbursal and deliver secure and seamless payouts.&nbsp;So, what is a payroll card? What are its pros and cons?&nbsp;Keep reading to know.&nbsp;<h2 class="heading-node" id="5ckwb8qg3">What is a payroll card?&nbsp;</h2>A payroll card is a prepaid card that employers use to pay their employees. The employer (business) loads the card with wage or salary via the respective routing/account number. These cards are reloadable and can be issued both in virtual and physical forms. Businesses are adopting customized payroll card programs to embrace sustainability, optimize their financial and human resources, augment bottom line performance, and extend value to employees.&nbsp;Payroll cards are a secure alternative to direct deposits (bank accounts), cash payments, and paychecks. They are ideal for traditional recurrent disbursals, daily wages, fees, just-in-time allotments, and other customized payments and reimbursements. They function like regular debit cards and can be used to make cash withdrawals, POS payments, utility payments, money transfers, and balance inquiries.&nbsp;Payroll cards help the unbanked segments receive salaries in a structured way while helping them save and track their spending. It eliminates the need for a bank account or physically going to a bank to cash a paycheck.&nbsp;&nbsp;<h2 class="heading-node" id="uqt09bdni">Types of payroll cards</h2>Payroll cards can be customized according to business requirements. They are broadly classified into four categories.<ul class="list-node" id="89x3ltnvt"><li>Branded payroll cards - The branded cards carry the card network logo and can be used for domestic and international transactions.&nbsp;</li><li>Personalized payroll cards - These cards have the respective card holder (employee) name printed on the card.&nbsp;</li><li>Instant issue payroll cards -&nbsp; As the name suggests, these payroll cards are issued on the spot. So they do not carry the name of the cardholder.&nbsp;</li><li>Portable payroll cards -&nbsp; If the cardholder holds multiple jobs or has cash flowing in from several sources, then portable payroll cards come in handy.&nbsp; These cards can accept government benefits, tax returns, and salaries from consecutive employers.&nbsp;</li></ul>The above-mentioned card types are not mutually exclusive. They can be mixed, matched, and customized as per the need.Now, let's check out the pros and cons of payroll cards for businesses and employees.&nbsp;<h2 class="heading-node" id="ehevreuu7">How payroll cards benefit businesses?</h2>For employers who intend to take full advantage of electronic fund transfer, <a class="link" href="https://m2pfintech.com/blog/prepaid-cards-101-a-definitive-guide-for-growth-and-profitability/">prepaid</a> payroll cards are a befitting option. The payroll cards program streamlines the payroll process while creating a win-win situation for unbanked employees and their employers. It is also deemed as an economical alternative to issuing paychecks.&nbsp;Here are some of the benefits:&nbsp;<ul class="list-node" id="bshphz1p0"><li>Reduces cost, effort, and time - The payroll card program reduces the costs and time associated with accounting and administration. It cuts down production effort involved in handling manual paychecks and issues associated with lost or stolen checks, stop payment orders, fraudulent cashing of duplicate checks, and more. It minimizes charges related to bank transactions and eliminates escheat issues.&nbsp;</li><li>Increases efficiency - Payroll cards use <a class="link" href="https://m2pfintech.com/blog/why-should-apis-be-your-holy-grail-for-prepaid-card-issuance/">API-based tech stacks</a> that leverage financial technologies to increase the efficiency, pace, and accuracy of payroll processing. Payrolls can be processed in no time, and disbursals can be optimized to their fullest potential.</li><li>Boosts sustainability - The rise of paperless, digitized payroll in the form of virtual and physical cards helps businesses embrace sustainable finance and operations. Payroll cards eliminate the need to cut trees for the paper required to produce physical cash, cheques, account stationery, and more. When the cards are metallic, plastic hazards too get out of the picture. Thus payments and salary disbursals can be made in a green and eco-friendly manner.</li><li>Builds trust and reliability - As salaries get credited to the card on time without the hassle of check bounces or bank strikes, the reliability factor of the employer increases. Employees trust their payroll cards will be ready to use without any security issues.</li><li>Drives employee loyalty - All employees who have payroll cards are eligible for real-time payments regardless of their relationship with the banks. This ensures that salaries are credited to all cardholders instantly without any bias or hassle. Irrespective of being banked or unbanked, employees can use this cashless payment instrument to spend, save and track their expenses safely. These inclusive processes and initiatives drive employee satisfaction and loyalty.&nbsp;</li></ul>Employee welfare is an integral part of any organization. Therefore, it is imperative to recognize and evaluate the advantages and disadvantages of employee payroll cards. It helps you make informed and better decisions that nurture the overall growth of the employees and the business.&nbsp;<h2 class="heading-node" id="fcvsqq9kv">How payroll cards benefit employees?</h2>For employees, payroll cards provide a convenient way to access wages/salaries without physically going into a bank or opening a bank account. Employees can use payroll cards at any merchant that accepts debit cards. They can also help employees avoid check-cashing fees and other charges associated with traditional banking products.&nbsp;Payroll cards offer many other advantages to employees.&nbsp;<ul class="list-node" id="je5f3uu4t"><li>Instantaneous, easy to use, transparent, and secure.&nbsp;</li><li>Provides a convenient way to receive salary/wages without a bank account.&nbsp;</li><li>Eliminates the hassle of cashing the paycheck.&nbsp;</li><li>Promotes financial wellness as cardholders can track their spending and budget more efficiently with a payroll card.&nbsp;</li><li>Helps employees stay without debt. as the spending can be monitored and controlled.&nbsp;</li><li>If the card is lost or stolen, it can be blocked to reduce fraud and loss of funds.&nbsp;&nbsp;</li><li>Can be used to incentivize employees through reward points, cash backs, and discounts on transactions.&nbsp;</li></ul><h2 class="heading-node" id="ckfgbv29e">Downsides of payroll cards</h2>Like any other good thing in life, payroll cards also come with their own downsides. &nbsp;<ul class="list-node" id="m1sbxu2gv"><li>First off, most cards come with monthly maintenance charges and may apply additional fees for certain transactions like balance inquiries, ATM withdrawals, and similar activities. &nbsp;</li><li>The second major downside may happen when there is a card “freeze.” Some service companies place a temporary hold or “freeze” on a card for several days or sometimes even weeks. Employees who do not have a bank account will be unable to make any payments until the freeze is relaxed. &nbsp;</li><li>Further, if the card is lost/stolen, the employee will not have access to the funds until a new card is replaced.&nbsp;</li></ul><h2 class="heading-node" id="cfeambdgp">Are payroll cards a right fit for your business?&nbsp;</h2>Payroll cards serve as a multi-functional tool for employees to create a robust everyday financial system that works for their specific lifestyles. According to surveys, consumers worldwide are actively choosing payroll cards over other forms of payment. In fact, even though most cardholders have access to a bank account, they prefer payroll cards because of the seamless functionality, cross-functional potential, and ability to control income by distinguishing it from other finances.&nbsp;Now you know why payroll cards are a right fit for your business!When you make your employees' financial lives easier, their productivity and loyalty increase multifold. Turnover rates reduce and efficiency improves.&nbsp;Businesses employing the payroll card program have ascertained that it saves time and money, enhances security, improves payment infrastructure, and eliminates issues concerning cash disbursements.&nbsp; Most importantly, they bridge the financial inclusion gap for employees without easy access to traditional banking services. When implemented correctly, payroll cards can be an efficient tool for managing employee expenses and compensation.&nbsp;<h2 class="heading-node" id="q53px9969">How modern card issuance helps?</h2>The advantages of payroll cards are synchronous to the agility and scalability of a <a class="link" href="https://m2pfintech.com/prepaid-cards/" target="_blank">modern card issuance platform</a> catering to the gig economy and flexible working environments across the globe. The platform enables various features like seamless onboarding with an integrated identity verification solution, building multiple use cases like single-use cards, virtual cards, early salary, meal cards, shopping cards, etc., for the card users. The modern mobile-first cards offering instant limits and controls across different payment modes and transaction amounts ensure security and risk management for both employees and employers.&nbsp;Now, still wondering if payroll cards are right for you? Or are you looking for a robust payroll card program? &nbsp;You can get in touch with us at <a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com</a>.&nbsp; We'll be happy to help.&nbsp;Looking for more nuggets of fintech wisdom?<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Pros and Cons of Payroll Cards

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/07/MicrosoftTeams-image-9.webp" alt="M2P Fintech" title="" width="100%" height="253">The ecommerce market in India is growing at a dynamic pace. Estimated to reach $188 billion by 2025, the sector received $15 billion in investments from private equity and venture capital firms in 2021. At this rate, the Indian ecommerce industry will surpass the US to become the second largest online commerce market by 2034. Xpressbees, Amazon, Flipkart, and Cars 24 are some of the leading ecommerce firms that are making big waves with their investment and expansion plans.Rising smartphone penetration, evolving customer expectations, and convenient digital payments play a major role in the ecommerce boom. Online transactions in the Indian ecommerce ecosystem are estimated to grow by 96% to touch USD 120 billion by 2025. The growth of digital payment options such as credit cards, debit cards, prepaid cards, UPI, and BNPL added impetus to online shopping transactions.In this article, let’s decode the anatomy of payment card transactions in an ecommerce setup.Payment processing is how businesses complete credit and debit card payments. It includes authorization, funding, and settling of a transaction. For a consumer, an online card transaction is a pretty straightforward process that happens within a few seconds. All they need to do is enter the card details, and authorize the transaction with an OTP.And voila! The transaction is successful.<h2 class="heading-node" id="zpom3032i">Key Players in Ecommerce Payments</h2>While the entire transaction may only take seconds, it involves a complex network with multiple steps and players behind the scenes. Here are the players involved in carrying out a transaction.· Cardholder (customer with the payment card)· Merchant (ecommerce website)· Payment Gateway· Payment Processor· Card Network· Issuing Bank· Acquiring BankNow, we are sure you know who a cardholder and a merchant is. So, let’s take a deep look at other players and their role in card transactions.<h2 class="heading-node" id="wpqhfks61">Payment Gateway</h2>A payment gateway (PG) is a service that authorizes transactions between online businesses and their customers in a secure and convenient way. In simple terms, it acts as a secure tunnel between the merchant’s payment portal and the payment processor.<h2 class="heading-node" id="ifw2nj4oj">Role of Payment&nbsp;Gateway</h2>A payment gateway is a central cog in the transaction processing ecosystem for both online and in-store purchases. In a transaction process, PG is the front-end mechanism that collects, authenticates cardholder information, and transfers the details to the merchant’s bank in real-time. Then, the transaction is processed in the merchant’s bank. All payment gateways are PCI-DSS compliant and SSL-certified.For example, imagine you go to an online store, pile up your cart, and click on check-out for billing. When you enter your payment method and details on the website, a payment gateway helps you transfer money to the merchant.<h2 class="heading-node" id="y8i3jrc7z">Payment Processor</h2>A payment processor is a vendor service that acts as a conciliator between the financial institutions and the merchant involved. It facilitates authorization of the transactions and relays the data to clear and settle the transactions for the merchant. Some payment processing services include card acceptance, PCI compliance assistance, security solutions, and customer support.<h2 class="heading-node" id="l1mstpbl2">Role of a Payment Processor</h2>In a transaction, the payment processor acts as a tunnel between the merchant and the customer banks. It takes the information from the payment gateway and connects with the issuer through the card network to authenticate and approve the transaction. The role of the payment processor is summarized below:· Seek authorization for a transaction· Connect with the cardholder’s issuing bank· Transfer funds into a merchant account<h2 class="heading-node" id="5l1rujvkp">Card Network</h2>A card network is a card infrastructure provider that facilitates payment card transactions between the issuer and the merchant. Conventionally, the network validates, processes, and sets the terms for the card transactions. The major card networks in India are MasterCard, Visa, RuPay, Discover, and American Express.<h2 class="heading-node" id="0cnrfhxyg">Role of a Card&nbsp;Network</h2>The card network acts as a communicator between the merchant’s acquiring bank and the customer’s issuing bank. It is responsible for transmitting the transaction information to the correct issuing bank, verifying the issuer’s authentication results, and delivering responses to acquirers.<h2 class="heading-node" id="1pkqmuofu">Issuing Bank</h2>An issuing bank is a financial institution or a bank that issues and distributes (credit/debit) cards to customers. It operates as an essential intermediary between the cardholders and the card networks. Despite the common misconception, card networks do not directly issue cards to customers because of the fundamental risks involved in issuing credit to customers. Only issuing banks do.For instance, if a credit card holder does not pay off his or her debts, the issuing bank will write them off. In addition, the issuer will become responsible for recouping the costs. It is important to note that specific card networks like Discover and American Express serve as their own issuing banks.An issuing bank is typically a commercial consumer bank, commonly known as the issuers. It provides the framework to facilitate reliable and regulated transactions and the rules and standards for payments performed on its system.<h2 class="heading-node" id="2esexjmnq">Role of an Issuing&nbsp;Bank</h2>A card issuing bank is one of the key players in the card transaction and payment processes. Each time a cardholder makes a purchase/payment using a card, the transaction moves through multiple financial institutions and systems before the amount is credited to the merchant’s bank account. The issuing bank assents the transaction based on the customer’s available credit or funds in the account. Upon receiving the authentication request, the issuer’s Access Control Server (ACS) reviews the information, verifies the cardholder using their form of authentication, and responds to the merchant. It also subjects the transaction to its defined set of fraud and risk regulations.In the case of a credit card issuance, an issuing bank generally manages everything on the customer front, such as payment portals, rewards programs, payments, collections, etc. It plays a crucial role in evaluating and determining the credibility of a chargeback. For example, when a cardholder notices a counterfeit or invalid charge made to their credit or debit card, they immediately contact their issuer to file a dispute, kick-starting the chargeback process. The issuer validates the complaint and communicates the chargeback to the acquirer. The acquirer then notifies the merchant to either accept or challenge the chargeback.The issuer is responsible for authenticating the cardholders’ financial information and account data to determine their creditworthiness. Based on the assessment, it extends the line of credit to the cardholders and offers financial support for transactions/payments made with its cards. In addition, the issuing bank also renders essential services such as card activation, setting the purchase limit, suspensions, and card renewals.<h2 class="heading-node" id="p8c1kk2db">Acquiring Bank</h2>An acquiring bank is a financial institution or a bank that offers merchant accounts to businesses. These accounts enable merchants to accept direct debit/credit card payments. An acquiring bank, otherwise known as an acquirer or a merchant’s bank, is a licensed member of a card brand and is responsible for creating and maintaining the merchant’s account. It also manages the communications between card networks and businesses.Usually, the acquirer acts as a payment processor or an Independent Sales Organization (ISO) and processes credit/debit payments on behalf of a merchant. It provides merchants with unique IDs to manage card payments. In turn, the merchants pay a significant fee to the acquirer for their services in the transaction process.Transaction processes are prone to various financial frauds, that include breach of sensitive customer information. As a significant player in the payment process, an acquiring bank ensures transaction security and strictly complies with the Payment Card Industry Data Security Standard (PCI DSS). In the event of a fraud or data breach, the acquiring bank stands liable for the compromised transaction(s).<h2 class="heading-node" id="xswoi0hlp">Role of an Acquiring Bank</h2>As the merchant’s bank, acquirers are responsible for routing the payment card transactions to the appropriate issuing banks. Once the issuing bank disperses the amount from the cardholder’s account, the acquirer accepts the payment and credits the money to the merchant’s account. Furthermore, the acquiring bank exchanges fund with various issuers each time a consumer makes a purchase, returns for a refund, or raises a chargeback. It then issues a net balance (gross sales deducting the fees and reversals) to the merchant for transactions during the given period.When a cardholder uses a card in a purchase, the acquiring bank will either accept or decline the transaction based on the card holder’s account information available on the issuing bank and card network’s database. This process entails two steps.Step 1: Authorization — Request the issuer to validate the card details. If sufficient funds are available in the account, the transaction will be completed.Step 2: Authentication — Verify cardholders’ identity based on the card details entered during the purchase. The authentication process is typically carried out using 3D Secure (3DS).<h2 class="heading-node" id="rdmedr6bw">Payment Processing Workflow&nbsp;</h2>All the parties delved upon above are integral players in the card transaction ecosystem. Transactions would not be viable without any one of them.Curious to know how payment card transaction flow works?Let’s take the example of a credit card payment for instance.Here you go!<ol class="list-node" id="nuiohlbzx"><li>The customer initiates a purchase. The purchase can be made in person, online, or over the phone.</li><li>The merchant evaluates the credit card details entered during the purchase and routes the information to the payment gateway.</li><li>The payment gateway routes information to the payment processor.</li><li>The payment processor communicates the authorization request to the appropriate card network.</li><li>The credit card network routes the request to the cardholder’s issuer.</li><li>The issuer validates the received information and approves/declines the transaction.</li><li>The card network sends the issuer’s response to the acquiring bank.</li><li>The acquiring bank redirects the authorization response to the merchant.</li><li>Based on the response, the merchant accepts or declines the transaction. It deposits all the authorized transactions with the acquiring bank.</li><li>The acquirer credits the merchant’s account and submits the transactions to the credit card network for payment.</li><li>The credit card network pays the acquirer and charges the issuing bank.</li><li>The issuer posts the transaction to the cardholder’s account.</li><li>The cardholder receives the monthly statement and makes payment.</li></ol><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/07/Banner-for-Issuing-and-Acquiring-Banks-blog_2.webp" alt="M2P Fintech" title="" id="lpb5e7uta" width="100%" height="253">Payment processing is an indispensable part of any business, both online and offline. In the stride toward a digital economy, ecommerce payment processing is a modish necessity.Intrigued? To know more about payment processing, write to us at <a class="link markup--anchor markup--p-anchor" href="mailto:business@m2pfintech.com" target="_blank" rel="noreferrer noopener">business@m2pfintech.com</a>.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Anatomy of Payment Card Transactions in Ecommerce

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/07/Star_of_the_month__July_2021_V1_Star_of_the_Month_Word_Press1.webp" alt="M2P Fintech" title="" width="100%" height="317">Yay, it’s ‘Star of the Month’ time again!This July, we happily spotlight Gokula Krishnan, our industrious and dynamic M2Peer. We had a heart-to-heart chat with Gokul and unearthed his enigmatic fun side when he confessed his love for acting, bikes, rain, and Maestro Ilayaraaja’s music. He also took us on a quick fascinating trip down his career path, his motivations, and the work he adores.Well, we know you are curious now.Here are some nuggets from our chit-chat.<h2 class="heading-node" id="99ad">1.&nbsp;How do you usually start your workday?</h2>The moment I reach the office, the first thing I do is relax. This helps me to turn on a positive mindset to start a bright and fun workday. Then I proceed with my work schedule.After a quick catch-up with the admin team, I understand the requirements for the day. I then follow up on the admin tasks across all office locations.<h2 class="heading-node" id="da8b">2.&nbsp;What are your main responsibilities as an admin?</h2>The fun part about my job is that there are no set works or limits. Every day is a new day, and so are the incoming requirements. So, there are a lot of new learnings here.Right from managing couriers, laptops, identity cards, and other ad hock requirements, I need to ensure the tasks are completed on time. Once my admin-related works are completed smoothly, I will collate data to report to my team.For better understanding, let me breakdown the work process into three steps:· Understand the requirement· Coordinate and come up with solutions· Execute themIn a nutshell, I handle the planning, coordination, and execution of day-to-day administrative activities at M2P.<h2 class="heading-node" id="383e">3.&nbsp;How have you grown through the years as an M2Peer?</h2>My growth curve has always been an upward one. I have learnt and am learning, and there is still a long way to go.At M2P, I started out in the packaging section, then moved across teams and learned to develop my coordination skills for all requirements. Handling multiple requirements helped me learn about admin, finance, and HR departments. It is ideal to say that over the years, I grasped many things that still motivate me to bring the best out of me.<blockquote class="block-node" id="n4rv26itx">I am grateful to one of my mentors, Balakrishnan Elumalai, who helped me learn new things in finance.</blockquote><h2 class="heading-node" id="dff7">4.&nbsp;Is there a quote/saying that motivates you?</h2>I usually try to take an out-of-the-box approach to many things.Motivational Quote? Nothing of that sort.But music? Definitely!I am a huge fan of Maestro Ilayaraaja Sir. Whenever I feel like I need motivation, I listen to his melodies and get back on track instantly.<h2 class="heading-node" id="62b5">5.&nbsp;What’s that one thing your colleagues don’t know about you?</h2>Ah well, here it goes. I haven’t revealed this to my peers yet.I love trying my hands at acting in films. In fact, I’ve played an actor in a Tamil film that’s yet to be released in theatres.<h2 class="heading-node" id="de03">6.&nbsp;What inspires you the most about M2P?</h2>It’s the way the co-founders drive the organization. The culture they aspire to develop and the immense opportunities they create to learn and grow. They inspire me to hustle every day.Not just that. All M2Peers are equally welcoming and very helpful. They’ve reached out and helped me to learn many things from scratch. This empathetic and warm culture inspires me a lot 😊<h2 class="heading-node" id="a62a">7.&nbsp;What’s your idea of a perfect day?</h2>Each day is perfect for me. Going to bed with a dream and waking up with a purpose. But whenever possible, I love spending time with my family. Spending quality time with my dear ones is a perfect topping on my perfect day.<h2 class="heading-node" id="7a4e">8.&nbsp;What was your career path before joining M2P, and how has it changed?</h2>It wasn’t all easy when I started my career. Initially, I worked in the packaging section of a company. Then I went on to act in some films.But the real magic happened when I started my journey at M2P. I saw a new dimension unlock for me and a wonderful opportunity to learn. From the packaging section, to finance, and now admin-related works, I have learnt a lot of new things here at M2P. From the learning stage to exploring new horizons, I can see my career and personal life grow here.<h2 class="heading-node" id="b894">9.&nbsp;What are your hobbies/ interests?</h2>I love riding bikes alone. Driving in the rain while listening to Illayaraaja’s symphony is heaven on earth to me. I also love to play cricket at times.<h2 class="heading-node" id="fe7d">10.&nbsp;Anything else you want to share about M2P?</h2>M2P is the best place to learn, grow and have fun. As simple as that.I have never faced stress at work, as there are so many wonderful people around.<blockquote class="block-node" id="hkxiyaj4x">One word can sum up my journey at M2P — AMAZING!</blockquote>Cheers!<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Get to Know Gokula Krishnan, our Admin Hero

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/07/Creative-AePS-Blog-03.webp" alt="M2P Fintech" title="" width="100%" height="253">Over 85% of bank accounts in India are inactive.Research shows that the inactive accounts can be attributed to the issues faced by the underserved populace across remote corners of the country.<blockquote class="block-node" id="vrcfnudss">Bringing the underbanked and unbanked population into mainstream financial services is crucial for&nbsp;<a class="link au lm" href="https://m2pfintech.com/blog/fintech-a-catalyst-for-financial-inclusion/" target="_blank" rel="noopener ugc nofollow">financial inclusion</a>, the foundation of economic growth.</blockquote>Digital payment modes such as mobile wallets,&nbsp;<a class="link au lm" href="https://m2pfintech.com/blog/upi-the-driver-of-economic-growth-and-inclusion/" target="_blank" rel="noopener ugc nofollow">UPI</a>, contactless, payment cards, and QR codes have enabled universal access to financial services. But they still leave a gap for senior citizens, underprivileged, and inerudite sections of the society. These sections find it challenging to buy a smartphone or a payment card or even remember a passcode or PIN. Thus it becomes harder for them to join the digital Indian ecosystem.To resolve these challenges and to enable people from all walks of life to benefit from digital financial services, Aadhaar enabled Payment System (AePS) was brought into existence.Before diving in to know more about AePS, let’s have a quick look at what Aadhaar is and how it helps financial inclusion.<h2 class="heading-node" id="0c61">Aadhaar, driving inclusivity, and benefits</h2>Aadhaar is a 12-digit individual identification number issued by the UIDAI (Unique Identification Authority of India) on behalf of the Indian Government. In India, the Aadhaar number serves as a proof of identity and address. Any citizen of India is eligible to apply for Aadhaar Card. They can receive it via India Post, and as an e-Aadhaar downloaded from the UIDAI website.Aadhaar, the world’s largest biometric ID system, has been a crucial enabler of inclusive financial services in India. It captures fingerprints, retinal scans, and facial identification as chief authentication factors for transactions. So, the bank customer need not carry a smartphone or a payment card, or remember PINs and passwords.<blockquote class="block-node" id="vqdwnw2pm">More than 131 crore adults registered with Aadhaar have seamless access to banking services, insurance, and direct benefit transfers from over 700 financial inclusion schemes announced by the central and state governments.India’s financial inclusion index stands at 53.9, which is an impressive display of inclusivity brought about by Aadhaar.</blockquote>Aadhaar leverages advanced technology for transparent and targeted delivery of financial services, benefits, and subsidies without the hassle of intermediaries. Aadhaar saved the Indian government ₹2.25 lakh crores in Direct Benefit Transfers (DBT) by getting rid of fake beneficiaries and routing benefits to deserving people.<h2 class="heading-node" id="aab1">What is AePS?</h2>Aadhaar enabled Payment System (AePS) is a payment system that facilitates interoperable digital financial transactions through Aadhaar card-based verification (quick eKYC). It uses a Unique Identification Number or the Aadhaar number to make transactions effortlessly. Serving as a simple, secure, and user-friendly platform, AePS helps blue-collared workers, senior citizens, and the underprivileged to benefit from cashless transactions.AePS is a bank-led model, and any Indian resident can utilize the service just with their Aadhaar number that is linked to their bank account — Aadhaar Enabled Bank Account (AEBA). The Aadhaar enabled Payment System allows online transactions to take place at PoS (Micro ATM)/Kiosk/mobile devices through the Business Correspondent (BC) of any bank using Aadhaar authentication.Leveraging AePS, banks can empower all segments of society by increasing user-friendly access to cash deposits, payments, money transfers, and withdrawals. AePS use cases are accessible at any biometric-enabled touchpoint, viz., all-in-one integrated devices, mobiles/PCs/tablets, or any accessories that meet the technical specifications defined by UIDAI. By enabling AePS solutions, banks can enable seed status checks for direct benefit transfers, social security pensions and government subsidies.<h2 class="heading-node" id="f55b">What are the requirements for AePS transactions?</h2>AePS does not need a smartphone, document, or payment card. It only requires the customer to link the Aadhaar card to the bank account to capture the following info.<ul class="list-node" id="3lglglm5z"><li>Aadhaar Number</li><li>Biometrics-fingerprint identification</li><li>Name or Bank Issuer Identification Number (IIN)</li></ul>If not, just remembering the last four digits of the Aadhaar number will do. The Business Correspondent with an AePS machine or Micro ATM on assisted mode should be able to do any transaction for the customer.<h2 class="heading-node" id="ab00">Key objectives</h2>The main objective of AePS is to use Aadhaar number/ Virtual Identity to access AEBA for banking transactions through Business Correspondents (BC).It also aims to:<ul class="list-node" id="n7aofhjeh"><li>Securely facilitate&nbsp;<a class="link au lm" href="https://m2pfintech.com/blog/why-payments-interoperability-is-a-must-for-todays-generation/" target="_blank" rel="noopener ugc nofollow">interoperability</a></li><li>Enable quick eKYC services</li><li>Electronify retail payments as per RBI regulations</li><li>Build a full range of Aadhaar enabled Banking Services</li><li>Improve financial inclusion in India (According to the goals of GoI and RBI)</li><li>Enable intrabank and interbank transactions through a central switching &amp; clearing agency</li><li>Empower bank customers to use Aadhaar for banking transactions</li></ul>In addition, AePS helps deliver Government disbursements like NREGA, social security pension, and handicapped old age pension.<h2 class="heading-node" id="8be7">AEBA services</h2>With the help of AEBA (Aadhaar Enabled Bank Account), banks can offer the following services.<ul class="list-node" id="hakcr4xsc"><li>Cash Deposit</li><li>Balance Enquiry</li><li>Purchase</li><li>Cash Withdrawal</li><li>Mini Statement</li><li>Aadhaar to Aadhaar Fund Transfer</li><li>eKYC</li><li>Best Finger Detection</li><li>Demographic Authentication</li><li>Aadhaar Seeding Status</li><li>Self-Help Group (SHG) Transaction</li><li>BHIM Aadhaar Pay</li><li>Authentication</li></ul><h2 class="heading-node" id="7a75">How can customers use AePS?</h2>Customers can make AePS transactions in two ways.<ul class="list-node" id="uxpw6ofk8"><li>Through Business Correspondents&nbsp;— who usually represent the banks or entities. They are equipped with Micro ATM devices for facilitating customer transactions.</li><li>Through BHIM Aadhaar Pay at merchant locations&nbsp;— where the customer can make payments just by using Aadhaar number/VID and verify their identity using biometrics.</li></ul><h2 class="heading-node" id="614d">5 steps to perform an AePS transaction</h2>The steps below will guide customers to perform an AePS transaction easily.<ol class="list-node" id="9kqme9bxs"><li>Visit an ATM or contact a banking representative</li><li>Enter the 12-digit Aadhaar number and bank account number in the PoS machine</li><li>Choose a transaction type from the list- cash deposit, mini statement, withdrawal, balance enquiry, or fund transfer</li><li>Enter the transaction amount</li><li>Verify identity using biometrics (iris scan, fingerprint, or face recognition)</li></ol>Once all this is done properly, the transaction will be completed, and you can collect your receipt.<h2 class="heading-node" id="f14e">Why and how can banks and merchants offer AePS?</h2>For BanksBanks can reap the following benefits by offering AePS to their customers.<ul class="list-node" id="63zbggip1"><li>Reach more customers by engaging with Business Correspondent</li><li>Cut costs by leveraging digitization and reducing the printing of cheques and payment cards</li><li>Save time and money using a Business Correspondent instead of brick and mortar branches</li><li>Enable smooth interoperability among banks</li><li>Establish a quick and easy paperless KYC</li></ul>When banks wish to offer AePS to their customers, they just have to apply with NPCI / UIDAI. Then, they will be permitted to deliver AePS after the vetting and application process is completed.For MerchantsMerchants can accept AePS for cost-effective and inclusive payments. This will help them widen their customer base. Merchants can offer AePS by just applying to an authorized bank. After this, they can then receive digital payments for goods and services that are delivered from their customers.<h2 class="heading-node" id="1574">Greater security, trust, and inclusion</h2>When banks and merchants offer AePS, their customers can easily transact just with biometric authentication, either a face recognition, iris scan, or fingerprint identification. All these three aspects can never be forged, ensuring secure transactions.Banks and merchants can gain more customers through AePS as transactions can happen without the need of a physical card, passbook, smartphone or any other document. This will improve customer trust and confidence to make transactions in rural areas, especially among the underbanked segments. Banks across India are attributing enhanced revenue and cost-cutting to AePS offering.Want to add AePS to your payment ecosystem? Write to us at&nbsp;<a class="link au lm" href="mailto:business@m2pfintech.com" target="_blank" rel="noopener ugc nofollow">business@m2pfintech.com</a><a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Revolutionizing Financial Inclusion- Aadhaar enabled Payment System (AePS)

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/07/B2B-Experience_Main-Banner.webp" alt="M2P Fintech" title="" width="100%" height="529">Enhancing customer experience is imperative for any business. Even if the products and services are feature-rich, they can still be undervalued if the interface is boring and navigation inefficient. Poorly designed interfaces can lead to poor customer experiences that result in increased overhead costs and customer attrition. Whether you are in the B2B or B2C space, boosting customer experience, cutting cost and minimizing churn is crucial for survival.To drive customer loyalty, boost revenue, and maximize value proposition, great Experience Design (XDE) is vital.But how can you implement XDE without compromising security and compliance?We got expert help here.Catch Mahalakshmi, our Experience Design Lead, share her perspectives on how smart design thinking and a customer-centric approach can enhance user experience. Drawing from her experience, she implores deep into the compelling need for XDE in B2B space.<h2 class="heading-node" id="bd0d" style="text-align: justify">Breaking complexities</h2>Most of us have had frustrating experiences with mobile or web-based applications. One classic example is the company-mandated software we use to make expense claims. Imagine the last time you went on an HR portal to make an expense claim. The maze of forms, confusing terms and unnecessary steps makes you want to give up on even hoping for a refund. The next time you think about reimbursement, it feels like it’d be easier to spend your own money or give up on the expense altogether.B2B applications such as these have the potential to deliver huge value but are difficult to unlock. In simple terms, they are feature rich but complicated to use. Most B2B products are notorious for lousy user experience (UX) and lack customer support, even for common tasks. Though B2C products started out the same way back in the nineties, today their designs are more customer-centric, evolved, and matured.To break the complexities in the B2B design, the focus needs to shift towards “Experience Design” from just providing pure tech solutions.<blockquote class="block-node" id="mlljz4lwk">Offering a reasonably good user experience is now a basic necessity and not a luxury anymore.</blockquote><h2 class="heading-node" id="ecd9" style="text-align: justify">What is experience design?</h2>Experience design is the process of crafting products, services, and interactions that create enhanced experiences for users. The design should focus on solving customer problems, eliciting positive emotions, and driving repeated usage and references.<h2 class="heading-node" id="9007" style="text-align: justify">Why B2B companies lag behind in XDE ?</h2>Most B2B products have still not prioritized experience design. Some of them were built when the internet was in its infancy, and the technology required to provide rich experiences was non-existent.In the race to acquire customers, more focus is often given to features over experience during product development. To deliver quick go-to-market speed, product teams usually develop and code without a concrete experience design in hand. In most common cases, product teams are fully comprised of engineers and technology lovers and the product is solely built by them. Their focus is to ensure that the product provides many features and is functionally reliable.In cases where product teams try to understand user needs, usually, they tend to believe in “we know our customers” and rely on good intentions to set the direction for the product. The gut feeling makes some product teams skip user research, thus failing to dig deeper into user needs and goals.This happens due to a common misbelief that bringing UX to development adds time, effort, and resources to budgets. Other challenges B2B companies often face are getting access to users, the right resources, or acquiring the required data.<h2 class="heading-node" id="e281" style="text-align: justify">Do B2B companies not care about UX at all?</h2>Of course, they do! The good thing is that most B2B companies care about offering a good product experience. But tend to stay away from focusing on UX because of the above reasons. These days very few companies seem to not have overlooked the value of UX. However, even when companies are partially convinced about the need for good design, they don’t practice it actively or tend to procrastinate.<h2 class="heading-node" id="df7f" style="text-align: justify">Need to prioritize experience design</h2>Prioritizing experience design is now more important than ever, as business (B2B) buyers are also everyday users of consumer (B2C) digital products that, as a general rule, deliver a great experience. From the perspective of user expectations, the lines between B2B and B2C are getting increasingly blurry.Users spend an average of 6 hours daily online, constantly surfing the web and making decisions using consumer websites or mobile applications. This gives them the opportunity to compare any design with other services. Thus, even an average user is accustomed to high levels of experience, and this leaves them in a position to judge UX critically.Products with bad user interfaces and experience have difficulty meeting basic metrics like task experience, engagement, clarity, and satisfaction. The end result is loss of trust and loyalty, which takes a toll on brand value and is irreversible. Brands that earn a bad reputation find it very expensive to improve.<h2 class="heading-node" id="fd50" style="text-align: justify">Experience design, a strategic investment</h2>People who believe ‘XDE is expensive’ need to understand that including UX design in product development simply means a shift in investment that ultimately leads to more efficient project timelines. Through an upfront investment in prototyping solutions, testing them with users, and then iterating on the designs before development, a company can avoid expensive rework after the product is built.<h2 class="heading-node" id="03b6" style="text-align: justify">Fasten development, satisfy users</h2>A clearly defined UX process can speed up development by providing developers with well-defined and tested requirements and style guides. Rather than building and fixing a product, solutions can be created, rapidly tested, iterated upon and validated, and then developed with confidence.Developers can work faster because they don’t have to guess what it should look like since all their deliverables are clearly illustrated and documented.A well-designed product will undoubtedly result in higher user engagement, greater system efficiency, and satisfied customers.<h2 class="heading-node" id="bf29" style="text-align: justify">Align business goals and user needs</h2>UX designers should always strive to create a strategic user-centered design plan that enables them to understand and connect the overall strategy with the business goals and user needs while maintaining a positive balance between them. The plan should help establish active collaboration between cross-functional teams, a core requirement for any product to become successful.<h2 class="heading-node" id="bf18" style="text-align: justify">Boost loyalty, engagement, and sales</h2>User’s experience in business apps is as important as the value they deliver. The importance given to high-quality user experience (UX) is increasing exponentially, not just in the B2C context but in B2B as well. B2B companies find great user experience a powerful instrument to increase customer loyalty, engagement, and sales.And good UX doesn’t happen by accident.<blockquote class="block-node" id="ue5bqe39k">It is always a result of careful planning, diligent research, analysis, investment of time and money, and continuous improvement.</blockquote>Want to know more about implementing UX in your products?Write to us at&nbsp;<a class="link au mn" href="mailto:business@m2pfintech.com" target="_blank" rel="noopener ugc nofollow">business@m2pfintech.com</a><a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Elevating B2B Experience Design

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/07/BlogBanner_for-medium.webp" alt="M2P Fintech" title="" width="100%" height="358">Sustainability is broader than climate change. It is about building a society where upcoming generations can thrive. Today, the world is at a crucial juncture where sustainable decisions with long-term benefits are the need of the hour. The global movement toward building an agile, resilient economy has gathered pace. The financial services sector and worldwide regulators play a vital role in enabling a buoyant society by leveraging innovations and regulations in sustainable finance.Every year, the United Nations Climate Change Conference, otherwise known as the Conference of Parties (COP), gathers to deliberate solutions to climate change risks and access progress. Sitting at the heart of the hydrocarbon industry, the UAE has been elected to host COP28 in 2023. The nation’s investments in energy diversification and its highest level of climate ambition have resulted in the opportunity to accelerate economic growth, job creation, gender equality, and youth empowerment. The UAE has always encouraged financial ecosystems driven by technological advancements blended with climate-smart solutions. As a burgeoning fintech hub, the UAE is set to spearhead the quest for sustainability.<h2 class="heading-node" id="721f" style="text-align: justify">UAE’s commitment to sustainable finance</h2>As a global financial center, the United Arab Emirates acknowledges the role of sustainable finance in achieving economic growth, climatic goals, and energy diversification objectives. Subsequently, Abu Dhabi Global Market (ADGM) launched the UAE Sustainable Finance Working Group (SFWG) in 2019. The stakeholders include the UAE ministries, regulatory authorities, and other government bodies responsible for developing ecologically sustainable finance policies. In November 2021, the SFWG released a public statement of its commitment to sustainability objectives by adhering to the Net Zero by 2050 strategic initiative and establishing sustainable finance policies.Sustainable finance is a cornerstone in empowering the UAE and broader stakeholders to attain net-zero emissions targets. The Dubai Financial Services Authority (DFSA) and the Financial Services Regulatory Authority (FSRA) in Abu Dhabi are leading the way in accelerating the expansion of sustainable finance in the UAE. They are set to foster a thriving ecosystem for sustainable finance by enabling private capital investments. This is expected to improve the financial system’s stability, boost transparency, and achieve long-term sustainable development benefits.<h2 class="heading-node" id="e565" style="text-align: justify">Sustainable fintech alliance</h2>The MENA Fintech Association (MFTA), the leading voice and nexus of the Fintech community in the region, launched the Sustainable Fintech Alliance to foster MENA Fintechs in becoming leaders of sustainable approaches. MFTA aspires to help its members embrace and integrate sustainability as part of their organizations’ culture and values and create positive impacts in the wake of the increasingly acute environmental and social challenges.M2P is one of the founding partners of MFTA alongside Mastercard, Checkout.com, Codebase Technologies, YAP, Marshal, BPC, Taptap Send, and GPS. The partners are in collaboration with Abu Dhabi Global Market (ADGM), Dubai International Financial Centre (DIFC), and The London Institute of Banking and Finance MENA (LIBF). Together, the Alliance believes in harnessing the technological revolution and innovation to redesign financial services to reinforce sustainability.<h2 class="heading-node" id="5512" style="text-align: justify">Sustainability framework</h2>Sustainable finance is considered a strategy to facilitate projects that mitigate and manage threats associated with the broad range of environmental, social, and governance (ESG) risks.Against this backdrop, the DIFC devised a general Sustainability Framework to address existing gaps and challenges related to mainstream sustainable finance practices. It also seeks to augment the demand and supply of sustainable finance products and low-carbon, climate-resilient investment projects.The four strategic pillars underpinning the framework are Social, Environmental, Governance, and Government Alignment. The framework is designed to scale up the development of a business environment for diversified and innovative sustainable finance products. Another strategic intent of the framework is to empower the mobilization of private capital towards environmentally sustainable and climate-resilient investments.<h2 class="heading-node" id="a3fe" style="text-align: justify">M2P’s allegiance to sustainability</h2>As an earnest member of the MFTA, M2P is committed to implementing credible and transparent sustainability initiatives across global operations. Our team is constantly striving to innovate programs that are commensurate with the local culture, tradition, and governmental policies. We believe this will help us embrace the finesse of the Sustainability Framework and positively contribute toward the United Nations’ Sustainable Development Goals (SDGs) and Net Zero pledges.To mark our first step on the road to sustainability, we launched the “Better Half Program”, exclusive to our Indian offices. This program extends a hand to women who aspire to resume their careers after a break.<h2 class="heading-node" id="ec41" style="text-align: justify">Better-Half Program, a positive social impact</h2>We at M2P believe in creating a positive social impact by giving a chance to women looking to return to the workforce after a break. The break could be for any reason. We respect their choices and feel they deserve the opportunity to develop their careers.Recognizing the unique challenges women in India face after taking a career break, we launched the “Better Half Program.”- a formal employment program that helps women restart their careers and ease into professional life, starting with half a day’s work duration.Helping women hone their skills and be prepared for ‘Better’ career prospects and ‘Half’ a day of work is the rationale behind naming the program ‘Better-Half’. The better-half program facilitates a smooth re-entry to a full-time job through a gradual ramp-up of work hours.M2P is the world’s first company to make half-a-day work mainstream with benefits.Better-Half is a carefully curated program to restart one’s professional journey. Those selected are expected to contribute 5 hours in a day, making us the first company to make half-a-day work mainstream. The program is packed with all benefits that accrue to a person seeking full-time employment, including formal upskilling and participation in ESOPs.In addition, the program offers access to on-the-job projects, learning opportunities, and the possibility to work in a multi-disciplinary team. It extends community support, and those selected are mentored by experienced managers culminating in a chance to convert into a full-time role at the end of 12 months or whenever the participant decides to convert.<h2 class="heading-node" id="e9cc" style="text-align: justify">Fusing sustainability into fin and tech</h2>With over 1000 M2Peers globally, we aim to drive sustainable value through our digital products and effective ESG practices. Our vision and persistent efforts have enabled our customers to make headway toward a cashless ecosystem that fosters a financially inclusive society. We believe in investing transparent and consistent effort towards positive climate change, people advocacy, gender equality, racial diversity, and much more.Want more insights into our sustainability efforts? Write to us at&nbsp;<a class="link au mf" href="mailto:business@m2pfintech.com" target="_blank" rel="noopener ugc nofollow">business@m2pfintech.com</a><a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

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