#12 | Dinesh — Future of Data Sharing

By Dhriti Agarwal, Lakshmi Ajayan, Prajna Nayak & Dharmesh Ba

Published in

D91 Labs

15 min readMar 2, 2021

This interview was conducted as a part of ‘Future of data sharing’ sponsored by Facebook. In this series, we interviewed participants around their access, adoption, and usage of financial products along with their perception of data sharing to financial institutions.

Disclaimer: The income range was self-reported by the participant. D91 Labs does not request the participants to disclose their exact income.

Short Story

37-year-old Dinesh works as a Regional Manager at a pharmaceutical company. He stays in Delhi, where he was born and brought up, with his retired parents, wife and child. He is planning on repaying his home loan and buying a bungalow and a luxurious car. He dreams of setting up a pharmaceutical chain and being able to fulfil all of his family’s needs and wants.

Banking

Dinesh has 2 active bank accounts. He opened the first one with Canara Bank during his college days and still uses it as his savings account. He has a debit card linked to it.
His salary account was opened in 2008 with Axis Bank by his first employer. He has a debit card and a credit card linked to it.
Dinesh uses his Axis Bank account for NetBanking through the bank’s mobile app and has linked this account to multiple UPI Apps.

“During my college days, everything was paid with cash or DDs. We used banks only for making a DD.”
What was the reason behind choosing Canara Bank?
Both my parents have savings accounts in Canara Bank. You cannot open a savings bank account easily. At that time, they were demanding a person as security of some kind — someone who already has an account in the same bank as a witness. My parents had known the managers for a long time so they acted as a witness and gave the bank that security.
Why did you open an account with Axis Bank if you already had an account with Canara Bank?
When we join a company, as a process they provide us with a savings account where the salary is credited. There was a tie-up between my company and Axis Bank and since that time, I’ve been using this account.
Every month when your salary is credited into your account, how do you use it?
I save 20% of my salary and any incentive I get from the company in my Canara Bank savings account for any emergency, my future, and other things. If I get an incentive and we don’t use it, then it becomes our savings for the next month or the future. Sometimes, I also take an FD, mutual fund or post office deposit for the smaller incentives.

Payment Modes

Dinesh’s preferred payment modes are UPI, digital wallet and credit card.
He uses a variety of UPI apps like PayTM, Google Pay, PhonePe and Amazon Pay.
He also uses digital wallets on PayTM and Amazon Pay. He transfers money from his bank account to the wallets whenever these wallets are exhausted.
Dinesh has saved his credit card details on different apps and pays his credit card bill through Mobile Banking on the Axis Bank app.

What do you usually use your debit card for?
For withdrawing cash once or twice a month. Rarely do I use it for payments in shops or online, if my credit card is not functional or shows some error. Otherwise, I use my credit card.
Do you use your passbooks?
For Canara Bank, I have a passbook and all the transactions are updated in it. For Axis Bank, all the records and everything is on my app. If not, I receive a monthly statement of my credit card and debit card, so I check that.

On what basis do you choose whether to pay with your UPI apps, digital wallets or credit card?

Sometimes, these wallets or UPI apps are already registered on your app so it automatically selects it as the payment mode. Otherwise, I pay using my credit card.
Every time you mentioned only your PayTM wallet. On what basis do you choose which UPI app to use?
Mainly when we get a discount from an app, we use that. In the beginning, PhonePe and Google Pay had offers so I would use that. PayTM also used to have offers but even after the offers stopped, it became a routine, so now I’m just continuing with PayTM. I still have PhonePe and Google Pay, in case they start giving offers again.
When you pay on PayTM, how do you choose between wallet money or UPI?
It depends on the wallet. If there is cash in the wallet, then I pay through that. Otherwise, UPI.

Expenses

Dinesh’s regular monthly expenses include rent, utility bills, groceries and transport.
He pays for most of these expenses using digital wallets.
He commutes to work daily using his bike. He does mobile recharges for his parents and wife, apart from his own.
Dinesh does grocery shopping once a month online on Amazon after the pandemic. Earlier, he would visit Big Bazaar and other malls on Sundays.
He gives some money to his wife either in cash or through PayTM.

Have you ever tried using UPI to pay your rent?
I haven’t tried it, but I don’t have any issue paying using UPI. My landlord would ask me to pay with cheques. But since the lockdown, he’s been asking me to transfer it online through NetBanking so I do that from my Axis Bank app.
You mentioned that you usually travel by flight. How do you book your flights?
Sometimes online, through apps. I make the payments through credit card or PayTM, depending on the offers. If the website has some offers on credit cards, then I book through that and if PayTM is offering some coupons or offers, I use that.
When you go to Big Bazaar, how do you usually pay?
Through PayTM wallet or Future Pay wallet — Big Bazaar’s own wallet. Future Pay has its app and you transfer money to it via credit card, just like the PayTM wallet. I also pay using a gift card Big Bazaar made through SBI. It’s a tie-up with Big Bazaar that you get on a cart value of ₹10,000 which gives an instant discount of 10%-20%.
How do you pay while buying groceries at small shops?
During the lockdown, I’ve been using PayTM but earlier, we used to pay in cash. So if PayTM is available, then PayTM otherwise via cash. Sometimes shopkeepers refuse to take payments through PayTM probably because people who come to him must be demanding cash from him. So shopkeepers say “if you have cash, please give cash.”
Do you track your monthly expenses? If so, how?
I don’t keep that much of a track because our consumption is almost the same. For example, just before the lockdown, there was large expenditure on groceries but it reduced the next month. And when I transfer funds from my wallets, they show me the monthly statements of payments and withdrawals from my wallet. For example, when I use Amazon Pay or PayTM wallets to pay for electricity or water, etc. — I get a monthly statement via email that shows records of when I use my wallet. I have a track of all these statements.

Investments

Dinesh started investing in FDs 3–4 years back. He has 5–6 FDs with Canara Bank and 2 FDs with Axis Bank. He also started a post office deposit 3–4 years back.
He took a Mutual Fund from Axis Bank in 2019 because it had an attractive interest rate and good returns.
Dinesh has a Provident Fund that his employer started for him and he keeps track of it via a missed call or on the PF’s website.
He also started a 15-year Public Provident Fund for himself 4–5 years ago, on his office colleagues’ recommendation. He keeps track of the accumulated funds via a passbook that he updates when he goes to deposit any cash or cheque.
Dinesh is a part of an informal chit fund with a group of people from his area and his office whom he knows very well.

Did you decide to invest in these FDs and post office deposits yourself or on someone’s recommendation?
Some senior colleagues, friends and parents advised me that “When you get money, don’t waste it here and there. Instead, invest small amounts for your future.” So, I’m keeping a small amount of 0.5–1 lakh. I invested in the post office fund after seeing a small advertisement on television and hoardings that said they give FDs with good interest.
Why did you choose Canara Bank to start an FD?
I have some FDs with Axis Bank also but it’s a salary account and a private bank account. So, I use the Canara Bank account since it’s a government bank that is centralised. It is trustworthy and gives good interest.
Have any of these FDs matured yet? Do you have any plans of where to use them?
None of the FDs have matured yet, it will take a few years. I opened the FD and post office account for small investments whenever I get the chance, I did not have anything in mind. But after 1–2 years, they mature, and I will be able to transfer a good amount to a mutual fund, post office deposit or FD.
How did you choose to invest in mutual funds and why did you choose Axis Bank?
I got a bonus from my company, and after asking my friends and colleagues, I decided to invest it in Mutual Funds. You can start with ₹500 or any other amount since there is no limit. There was also an ad on TV during Diwali. All this was quite impressive.
You mentioned that you already have a PF from your employer. What made you take a PPF over that?
This is a 15-year PPF I took 4–5 years back. I came to know about it from my office colleagues. It’s a small investment with high returns. When I opened it, the rate of interest was a good 8–9% which you won’t get for FDs. Even on the higher side, you can only get 7% interest on FDs, that’s why I took it.
You mentioned that you are a part of a chit fund. Could you elaborate?
You could say it’s an informal chit fund for 12–18 months, depending on the number of customers. It’s a group of 10–20 people who give a small amount like ₹10,000 on a monthly basis. Whoever requires the money, can take a reduced amount. For example, if the amount collected is 1 lakh, they can take 80,000–90,000 and the remaining amount is divided among the rest of the people. We communicate via phone calls to meet at 7 pm on the 10th of every month.
Is there any particular reason you haven’t invested in the stock market yet?
I fear that my money could totally go down in the stock market. Some people lose money on it, even my brother has. I know mutual funds also have the same level of market risks but they can give assurance. There are 2 types of mutual funds — one has safe returns and the other is high risk. I’m investing in the one with safe returns where I will get guaranteed returns no matter what.

Insurances

Dinesh opted for a health insurance plan 3–4 years back. He also has vehicle insurance for his car and bike.
He renews his health and other insurances’ annual premiums via cheque.
Dinesh also purchased a life insurance policy 15–17 years back.

Did you decide to get life insurance yourself or on someone’s recommendation?
My parents suggested that I take life insurance for my future savings and plans.
How do you renew the LIC policy?
I renew it every month on the LIC website. I usually go and pay for that via cheque but in March, there was a lockdown so the premium was paid online via credit card.

Loans

Dinesh took a home loan from LIC Housing Finance Ltd. 4–5 years back. The payments are auto-debited from his Axis Bank account and the loan will be repaid in 6–7 years.
He purchased a split AC offline on a 0% EMI-basis using his credit card.
Dinesh plans to take a personal loan for renovating his house in the next 2–3 months. He has not planned to explore any government bank or NBFC options.

Why did you choose LIC Housing Finance for your home loan?
Because my agent is offering it to me and you can easily take it based on your policies etc. I checked with Canara Bank to but the interest rates are almost the same with all the banks. With my agent’s help, it was an easy process that took 15–20 days. After I submitted all the documents to my agent, he got them checked at the bank. Then, I got a call from LIC Housing Finance Limited to cross check my salary slips, bank statements, where money was coming from, whether it was a fixed amount, etc. It was a small introduction type of interview and once she approved the request, I got the amount within 5–7 days.
What documents did they ask you to submit for this loan?
My last 3 months’ ITR, last 6 months’ salary slips and bank statements, 2 photographs, property papers and one guarantor.
Why did you decide to shop on an EMI basis?
If you get a payment option of EMI on credit cards, that too with zero-cost, it is definitely useful because you can use that money later. Instead of paying it all in one go, if you pay using EMI, then there wouldn’t be so much load on you.
Have you already started checking where to take the personal loan from?
Yes, Axis Bank where I could get a personal loan is sending me messages and my relationship manager also called me to fix an appointment. I am giving it some time before I visit because there’s a very high risk of COVID-19 right now.

Technology

Dinesh owns a wide range of devices and social media and communication apps. He has been using smartphones for 15 years now and has 2 numbers.
He occasionally posts on Facebook and uses Whatsapp for voice and video calls.
He has never changed the privacy settings on any app or denied any permissions.

Why do you use 2 phone numbers?
One is my personal number. But then, I got an official number and I have continued using that. The personal number is now unused. But I give my personal number at the bank and have connected it to apps so it needs to remain active. I use one number for WhatsApp and another for calling, one is connected to Axis Bank and the other to Canara Bank.
You mentioned that you use Facebook login details to log in to other apps. Would you also consider using this for logging into bank apps?
I do use it to log in to apps because it is easier to login. But even if I had an option, I would not connect my Facebook with bank apps for safety and security reasons.
When Tiktok and other Chinese apps were banned, what did you think?
I would only watch videos on Tiktok and the banning didn’t make such a big difference. If it’s there, we can use it. If not, we have other options so it’s fine.
Have you ever read the terms and conditions or privacy policies of apps? Or have you ever denied them permissions to access your camera or contacts?
No. I have a lot of apps and that’s a lot of content. I don’t read so much. I never feel like denying access because if you deny permissions, the application doesn’t run smoothly.

Data Sharing and Privacy

Where would you take a housing loan from if the interest rates offered are the same?
Fintech apps. It would be more convenient and easy for getting a loan. It will take lesser time and if you have the right documents, it will instantly approve your loan, probably within 5 minutes?
What would be your second choice?
Private banks. From experience, I can say that they give good quality service to their customers.
Why is a government bank your last option?
You have to run behind them to get things done. In a private bank, they run behind you.

We asked the participant what kind of data they would be interested in sharing across different types of loan providers to borrow a personal loan.

Why are you more comfortable sharing your KYC details compared to your investment and insurance details?
If you have connected your Aadhaar to your bank, all your KYC details will there anyway. I have updated my KYC on Amazon and PayTM. But according to me, they don’t need my investment or insurance details. Since it is a personal loan, if it’s very necessary, I can share my insurance details. But I don’t think it’s right to share my investment information.

To further cross their statements we asked the participants to choose from two different types of loans based on their varying data requirements and captured their thoughts.

Dinesh is comfortable sharing more ID proofs, social media accounts and bank statements for the entire duration of the loan for a lower rate of interest.

He is also willing to share his information with third parties as long as he knows who they are and that his data is safe with them.

“If I share my social media profiles once, I’m saving on 2% of monthly interest, right? It’s beneficial.”

Goals and aspirations

Dinesh is an ambitious professional who dreams of climbing the corporate and social ladder and is investing to achieve this goal.
In the long term, he also wants to set up his own pharmaceutical chain.

Do you have any short term goals that you are saving up for?
I’m planning on buying a sedan within 2–3 years and getting a promotion in my job profile. I want to go from a 1BHK to 2BHK, 2BHK to 3BHK. For all this, I am investing some amount on a monthly, half-yearly and yearly basis. My FDs will mature in 1–2 years, and I can use that money for investing in more FDs with good returns and repaying the home loan. Finally, in 10–20 years, I will have my own bungalow, luxurious car and pharmaceutical chain.
Have you thought about how you will finance your pharmaceutical business in the long term?
There are small savings and in some time, if I get a lottery of a 4–5 lakh incentive, I’ll be ready to take action.

Credits

Interview and transcribed by Lakshmi Ajayan
Analysed and written by Dhriti Agarwal
Edited by Prajna Nayak & Dharmesh Ba

Future of Data Sharing:

‘Future of Data Sharing’ aims at designing a playbook for consented data sharing to enable financial services in India. The objective of this research is to develop a design toolkit with the upcoming public infrastructure Account Aggregators as the main theme in focus. The toolkit will host resources and assets around designing better user experiences for data sharing and data portability.

Future of Data Sharing is sponsored by Facebook and executed in collaboration with D91 Labs, DICE, Parallel Labs, TTC Labs and Sahamati.

About TTC Labs:

TTC Labs is a cross-industry effort to create innovative design solutions that put people in control of their privacy. Initiated and supported by Facebook, and built on collaboration, the movement has grown to include hundreds of organisations, including major global businesses, startups, civic organisations and academic institutions.

Future of Data Sharing by D91 Labs is licensed under CC BY-SA 4.0

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About the Research

This documentation is a result of the in-person interview, along with the participants’ consent. The interviews might be conducted in their native languages and translated to English in the best possible way to reach a large audience.

Disclaimer: The identities of people and places in this documentation have been changed to honour the privacy of the participants.

About D91 Labs

This research was executed and documented by D91 labs. D91 labs is an open-source initiative by setu.co to help Bharat build great fintech products. We organise and publish user research, insights, and frameworks for fintech in India. Please follow us on medium for more exciting stories and insights on Bharat.

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