No industry will be immune to disruptive innovations, whether the oil industry, auto industry or financial sector, in the next few years.
And, in India, incumbents and newcomers will have equal access as the country will leapfrog from being a "data-poor nation to a data-rich nation in just five years," according to Infosys co-founder and former chairman of the Unique Identification Authority of India Nandan Nilekani, below, left.
Making a presentation on 'The coming great disruption' as the Chief Guest at the Business Standard Annual Awards 2015 function in Mumbai on Thursday, Nilekani said all this would happen because value was shifting from enterprises to consumers.
Nilekani said disruptions caused by WhatsApp, Skype, Uber and Apple reflected this.
"WhatsApp manages 30 billion messages a day.
"This is much more than all the top telcos manage today.
"These guys are talking of offering voice. Just imagine what will happen," he said.
In a speech peppered with interesting anecdotes and data, Nilekani said new-age technology markets work on a winner-takes-all basis.
The company that establishes itself early enjoys disproportionate rewards, evident from the fact that Uber, with a valuation of $60 billion (Rs 4.11 lakh crore) is way ahead of rival Lyft valued at just $5 billion (Rs 34,279 crore).
Costs in the financial sector would also come down sharply.
For example, the onboarding or Know Your Customer process in the mutual fund industry costs around Rs 700-1,500 per person currently, leading to restriction in the number of people investing in these.
Consequently, only 10 million investors are there in the industry.
This number can go up to 100 million because through the electronic route, the cost will be coming down to Rs 10 per person. So, inclusion will happen due to market forces.
"For the first time, the government's goal of financial inclusion and market goal of expansion are happening at the same time," added Nilekani.
In India, regulatory innovation is ensuring that there is fast-paced development on the digital front.
For example, 14 banks were set up in the past 45 years. Since 2014, licences have been given to two banks and 21 small and payments banks, ushering in a new era of differentiated banking.
With the advent of technology, immediate payment service has surpassed money orders.
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