iNM Volume 9 | Page 20

DISRUPTIVE INNOVATION PAGE 14 iNM Volume - 9 of today and many more to come in the future The credit cards were introduced in the 1950s Debit cards in the 1980s and electronic payments have grown in popularity displacing cash and cheques 4 Insurance . ) , Telematics Insurance products , , . The above given Telematics insurance model is best suitable for vehicle insurance The 3rd party data is driven by telematics devices that have evolved to measure a variety of additional behavioral factors from rapid acceleration to air bag deployment Internet of things are used to gather all possible information about the customer Current payment system infrastructure through the internet is given below . . . . Emerging payment systems Payment which is an important f unction in finance has had many recent developments that have focused on the following verticals of payments Making the transactions secure Need for faster transactions Requirement of Visibility of transactions Reducing the cost of transactions Making payments to different geographies hassle free These focus areas shows that the innovations an in line with the hope of creating a cashless world : . • • • Risks are priced based on the customers data submitted and some 3rd party data including historical data and predictive indicators Leveraging such data insurers charge customers premiums based on their usage of the vehicles and current driving behaviours instead of typical fixed premiums given the strong correlation between usage of vehicles and risks , . , ’ , 5 Payments A series of innovations have taken place in the payment systems Starting from physical transaction in the early days which has come up to technologies like RTGS IMPS ) . , . • • . Cashless world More cash is displaced by electronic transactions as payments innovations are making them beneficial for customers to use payment cards even in small denomination transactions With greater adoption of electronic payments more data is accumulated from payment transactions . ,