Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Tuesday, 25 September 2018

FINANCIAL INCLUSION ? HERE IS THE FUTURE


In Sync with Peter  ?

=================


On 16 Sept , Peter wrote following blog on his web site :


In response , on 17 Sept , I blogged :
Peter :  Can we expect this ? [ I meant in Part 2 ]


Yesterday [ 24 Sept ] , Peter published :


HIGHLIGHTS :

Peter in Part 2 :
1.               Peer-to-peer lending
          With crowd-lending, we are evidently returning to this pre-centralized-banking model of
           loans, and moving away from cumbersome intermediaries (e.g. high fees, regulations,
           and extra complexity). 

          The benefits of this AI-powered lending platform do not stop at increased loan payback
          rates -- there’s a massive speed increase as well. Smart Finance loans are frequently
          approved in under 8 seconds

          Digitizing access to P2P loans paves the way for billions of people currently without
         access to banking to leapfrog the centralized banking system
       Smart contracts executed on these immutable ledgers bring the critical ability to digitally
       replace cumbersome, expensive third parties (like banks), allowing individual borrowers or
      businesses to directly connect with willing lenders



My take P2P Lending Regulations29 April 2016  ] :

·       Can " Companies " register on P2P platforms as either Lenders or as Borrowers ?

·      Can American / European / Japanese citizens become lenders on Indian P2P platforms and lend money to Indian borrowers ?


·       Globally , loan default rate for P2P platforms is under 1 %

      My suggestion ( to enable FDII- Foreign Direct Investment by Individuals ) has the
      potential to bring back those $ 501 billion that Indians have secretly stashed abroad
      No rocket science here !
     

·      FDII will raise that number of Self Employed , enormously

·      FDII will turn India into a " Low Cost Economy " , thereby boosting

·      Exports and taking GDP beyond 10 %




Peter in Part 2 :

1.               AI financial advisors and robo traders
          In 2017, CNBC.com estimated that 90 percent of daily trading volume in stock
          trading is done by machine algorithms, and only 10 percent is carried out directly by
          humans
           
          Artificial intelligence and financial management algorithms are not only available to
          top Wall Street players

          Robo-advisor financial management apps, like Wealthfront and Betterment, are
          rapidly permeating the global market. 
          
           As artificial intelligence continues to exponentially increase in power and capabilities,
        increasingly powerful trading and financial management bots will come online, finding
        massive new and previously lost streams of wealth.

        Extraordinary transformations are happening in the finance world.
        We’ve only scratched the surface of the fintech revolution.
       All of these transformative financial technologies require high-fidelity assurance,
       robust insurance, and a mechanism for storing value. 


My take  A Matter of Time    [  03  Jan  2017  ]

 

       *  All bank accounts of a person ( in different banks ) become inter- operable / fungible
          through seamless interlinking , using Aadhar / UPI Interface in a Mobile Wallet

          No need to " select " a particular bank name


  
     *  All transactions using a Mobile Wallet, automatically entered in  BLOCK-
         CHAIN  database commonly shared by ALL banks


  

     *  Wallet based algorithm will  move funds across different bank accounts  for best

        yield , constantly searching for best interest rates offered by banks on Fixed Deposits


  
        This will happen automatically , much like algorithm-based share trading , taking

        advantage of price differences in two bourses located 300 km apart ( in one
        thousandths of a second ! )
  


       No rocket science here considering availability of  " BEST PRICE "  apps for thousands
       of goods and services

   
       And since computing power of mobiles are doubling every 18 months ( Moore's Law ),
   
      nothing will stop algo-trading through a Mobile Wallet , as well ! ( Demat A/C on
   
      Wallet ? )

 


25  Sept  2018



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