Vinayak Bhavnani, Co-Founder and CTO of India-based bus transport technology company Chalo, shares how Google Maps Platform is used to improve visibility for commuters and bus operators across India by visualizing geospatial data.

Effective public transport networks contribute to the local economy and help make cities safe, pleasant, and sustainable. In India, buses make up around 90% of the public transport offering, but when you talk to the people who ride them every day, you find that there’s a lot of room for improvement. Heavy traffic means there are rarely any fixed schedules and it’s impossible to know exactly when your bus is coming. We’ve found that people tend to wait at a bus stop for up to 30 minutes a day, which creates a lot of frustration and wasted time.

When we founded Chalo, our aim was to make the daily city commute a more positive experience. Reliability is synonymous with visibility: when you know exactly when the bus is coming, you can plan your day better. If you’re in your office, for example, and see the next bus is in 10 minutes, you can be at the stop at the exact time it arrives, instead of waiting around. To enable this, we base our solutions on richly-detailed geospatial data provided by Google Maps Platform.

Eliminating wait times and increasing revenue with geospatial data

In India, bus passengers tend to have fewer resources. The Chalo App, which can be downloaded for free, allows them to see exactly where their bus is on its route and when it will arrive at their nearest stop. They also tend to be late adopters of mobile technology, meaning we had to create an interface that was user-friendly, reassuring and adapted to all age groups and backgrounds. One of the main reasons we opted for Google Maps Platform is that it’s very present in India and other emerging markets and is familiar to our users, which inspires trust. At the same time, we like the fact that Google Maps Platform provides rich geospatial data while being simple to implement and work with. We use the Geocoding API, Reverse Geocoding, and the Directions API to enable location search and provide directions.

We also worked with MediaAgility to identify the Google Maps Platform products most suited to our needs and the best practices to be followed. This helped to ensure that our business objectives could be met efficiently.

The Chalo App also enables digital ticketing, alongside the Chalo Card, a payment card for those who don’t own a smartphone. India, like the rest of the world, is gradually moving away from cash payments, but the public transport system is proving slow to catch up, meaning people still must have cash in hand when they board the bus. Digital ticketing not only makes commuting more convenient, it also helps protect passengers, drivers and conductors during the COVID-19 health crisis by limiting physical contact. 

Chalo also offers solutions aimed at bus operators that help them improve their services and their bottom line. In major Indian cities, buses are run by a combination of public and private agencies and small private individual bus operators, with the majority of the latter only operating one or two buses. The market is very fragmented and there’s not much incentive for bus operators to invest in infrastructure or customer experience – especially when they have little to no visibility on where their fleet is at a given time, how many kilometers it travels in a day, or how much money it takes. 

The Chalo dashboard provides operators with a map-based real-time overview of bus locations, alongside scheduling features and route, ticketing, and passenger statistics. Geospatial intelligence and insight into passenger demand enable operators to explore new avenues of revenue and adapt routes and services to passenger needs. Operators who’ve partnered with Chalo report an average improvement of 10% to 30% of their bus fleet operations.

Chalo is currently powering about 100 million rides a month on 15,000 buses in 37 cities. We’d like to see the number of rides increase tenfold over the next few years. To do that, we’re looking to broaden our offer and expand to other parts of the country and across international borders. A pilot is underway in Bangkok, and we’re considering expansion into South-East Asia, Africa, and the Middle East. Having access to detailed geospatial data anywhere in the world via Google Maps Platform, without having to make any major investments or changes to our technology stack, will make this considerably easier. 

At the same time, we’re exploring artificial intelligence and machine learning to improve the accuracy of our scheduling features and we’re introducing video-based solutions for people-counting on buses. Our aim is to continually improve our offering and optimize our services. We’re looking forward to working closely with Google to make that happen.  

For more information on Google Maps Platform, visit our website.

Faced with changing customer behaviors and demands, tightening margins, and increasing threat from digital competitors, financial services institutions (FSIs) will need to meet customers where they are, open up their services, and establish new ways to monetize their products. Doing so will also enable them to build a better profile of their customers, and deliver more personalized user experiences and fast, convenient banking and payment services. Cloud technology plays a big role in this shift toward digital FSIs. 

In Asia, bank branches now account for just 12% to 21% of monthly transactions in the region, with customers turning to digital channels for routine transactions such as peer-to-peer transfers and bill payments, according to McKinsey&Company. Overall customer engagement has climbed from an average 12.7 to 14.9 transactions a month in Asia’s developed markets, and from 6 to 8.1 in emerging markets.¹

Fueled by growing smartphone adoption, the evolving customer behavior and momentum toward digital platforms have enabled digital-first players to snag a growing piece of the banking pie. 

McKinsey estimates that digital banking penetration has grown an average of 97% in Asia’s developed markets, and 52% in emerging markets, with between 30% and 50% of those that have yet to use digital banking likely to do so.

Consumers now are more than ready to make the switch to neobanks, or digital banks. In Singapore, 63% are open to banking with digital-only players, according to a Visa study. On what will entice them to do so, 63% point to bill payments while 56% will use neobank services to make payments at retail outlets. Furthermore, 54% prefer digital banks for the convenience they offer while 52% like the faster service.

Among those who are open to digital banks, 60% will move some services from their current bank to these new players even if the latter have no prior banking experience. One in five of respondents say they are willing to switch all services to a neobank.

The same is true for small and midsize businesses (SMBs) in Singapore. According to a separate survey by Visa, 88% of these companies will consider moving some services to digital banks.

Driven to do so by their frustration over a lack of quality corporate products and control of their banking experience, 55% of SMBs believe neobanks will help bring down overall banking costs. Another 54% say digital banks offer greater convenience, while 53% point to greater ease in paying bills online.

These stats should worry even established FSIs, especially those that have not done quite enough to open up their service ecosystems and drive innovation through APIs.

An API toward new revenue

While most banks have active APIs, the services that some of them currently provide are just functional; they’re the means to an end for partners to obtain their targeted products and services. Without knowing, consumers use these types of APIs indirectly by using their favorite applications every day—a payment processing API will enable them to purchase their lunch, while a loan application API will get them that dream home.

But while banks do not always own the customer journey, they still can find opportunities to sell their products via partners. Many leading banks are leveraging key technologies, such as API management, artificial intelligence (AI), and data analytics to embed digital banking into consumers’ everyday lives, including groceries, travel, entertainment, healthcare, and food delivery. 

When traditional banks open up their APIs to third parties offering broader services that pull in unique services into their own apps, they then become plugged into the broader customer journey. This helps boost usage of their services and embeds them in the overall customer experience. It also provides aggregated data that will help banks build richer consumer profiles, and deliver more personalized products and services.

APIs also create equal opportunities for smaller participants to be involved in the financial services ecosystem, potentially creating micro-segments that previously may not have existed. With insufficient demand within a closed system, to justify the provision of such services, some customers in these micro-segments have previously been left unserved. The APIs, which facilitate collaboration between the different micro-segments so they can be commercially viable, help assuage this problem. 

Some banks are also opening up APIs to allow access to datasets that enable businesses to trigger automated workflows and enhance their operational efficiencies. Others, such as Bank Rakyat Indonesia (Bank BRI) have generated new revenue by leveraging Google Cloud’s Apigee to manage their API lifecycle and identify new revenue opportunities.

Apigee’s monetization feature has helped Bank BRI realize $50 million in revenue and enabled the bank to define its pricing based on API calls and automatically bill based on usage.

In addition, the Indonesian bank uses the data analysis alongside Google Maps Platform to score its customer base of 75.5 million, and identify those who can be recruited as BRILink agents for underbanked areas. These agents are customers who maintain a minimum balance of $800 USD and score high on reliability.

The appointment of branchless agents via the Agent BRILink app has pushed the loan volume from the bank’s branchless business to $26 billion in 2018, up from $15 billion the year before.

How banks can get started with APIs

Clearly, there are new revenue opportunities for banks to leverage the data they already have. Here are some tips to help FSIs kickstart their API journey:

• Align with internal leadership growth initiatives. Leverage executive key performance indicators around growth and cost savings to foster a culture that offers APIs to micro-segmented markets with an eye on cultivating a healthy financial services ecosystem.
• Productize APIs with a strong value proposition. Starting with an API-first approach, stock the shelves of your API shop with new services and a strong inventory of APIs that will entice third parties (i.e., retailers, telcos, etc.) to start using them. This customer-first, outside-in approach will serve as a strong base to build on and enable the addition of more APIs as adoption grows.
• Actively nurture a developer community. A properly trained API manager will ensure constant contact with the developer community, and that partners are provided with case studies to help them identify viable use cases for your APIs.
• Leverage security as a strategic enabler. Security is a key enabler of the API economy, and most API security postures are defensive. By leveraging deep security tooling together with strong identification of developers, banks can better track information and data usage offensively. 

FSIs also need to avoid some common pitfalls, such as overlooking the need to continuously improve their APIs. If no one is using it, the API clearly is failing to provide any real value to third-party developers.

In addition, efforts should be made to market the APIs and let developers know what is available. A common mistake FSIs make is assuming their work is done once their APIs are released and neglecting the need to carry out community outreach and marketing to generate awareness about the APIs.

If you are interested in learning more about this topic, don’t miss our session at the Google Cloud Financial Services Summit on Embedded Finance: The Future of Banking.

^{1. McKinsey & Company. “Asia’s digital banking race: Giving customers what they want.” Global Banking Practice. April 2018.}

Google Cloud Results

• Enables the speed and agility required to build open APIs
• Connects over 1 million customers through Apigee digital touch points
• Helps enable a range of digital banking and commercial partnerships
• 1billion API requests served annually

In 2016, Macquarie launched a new digital banking experience that was based on empowering customers, creating personalized experiences, and developing intuitive technology. Macquarie had the opportunity to build its digital environment from the ground up and looked beyond financial services to digital companies leading in customer experiences.

Following the launch of its digital banking platform in 2016, Macquarie saw providing customers with a secure way to manage their own data as the logical next step. Macquarie looked to transform its existing technology capabilities into a modern architecture that complements the speed and agility demanded of its digital platform. The Apigee API Management Platform plays an important role in helping Macquarie deliver a highly secure and open digital platform.

“The capability to connect to various platforms with a digital, responsive, technology-agnostic platform is vital. As new digital services emerge, it’s important that our digital banking services are future compatible. The most important part of our approach isn’t what we are doing now but what our platform architecture will allow us to do in the future by creating more human experiences with technology that go beyond just banking,” says Rajay Rai, head of Digital Engineering & Applied Innovation, for Macquarie’s Banking and Financial Services group.

Because Macquarie’s banking platform is based on an open API architecture, it is able to grant controlled access to its business services, enabling others to use, innovate, and build on top of them while increasing the prospects of widespread adoption and developer stickiness.

Empowering the developer

“Macquarie’s strategy has been API-first as it has built and improved its digital capabilities, but it won’t be too long until this approach is superseded by citizen-developers-first,” Rajay says. “We believe that co-creation of value is essential because in the future, we won’t be owning the channels for distribution and engagement. In building a leading digital banking platform it’s important that developers are able to open the front door.”

Macquarie’s API strategy grants internal and external developers with access to its rich repository of APIs exposed via the new developer platform, Macquarie devXchange. With Macquarie devXchange, developers have readily available samples, a sandbox, and simplified connections to all of the bank’s services. Developers are able to test APIs and services through the Apigee platform.

“Not only does the platform provide frictionless access, but it’s also poised to modernize and simplify the way we engage the community beyond our own perimeters,” Rajay says. “The Apigee developer portal is helping us seize new opportunities; access has been democratized and it wouldn’t have been possible without APIs.”

Cloud migration

In order to meet future demand for computing capabilities, Macquarie decided to move to the cloud in order to enable an infrastructure with various configurations on demand. This has cut the provisioning time for Macquarie from months to minutes.

Macquarie has created full end-to-end environments on Kubernetes and can flow traffic to a whole new environment in seconds, encouraging experimentation and learning. This was made possible through the flexibility of APIs.

“APIs and microservices are a great match. Microservices with Apigee provide a powerful, agile ecosystem to form various services topologies and evolve services in an isolated manner. This helps us respond to the fast pace of digital innovation today,” Rajay says.

Empowering consumers

Macquarie’s approach is about delivering customers more personalized banking experiences that are driven by how they want to use their information.

“APIs have enabled us to co-create value with our partners, customers, and developers. You can’t live in isolation; open source tells you that,” Rajay says. “APIs have been vital for us and what we can deliver for our customers as we’ve built our leading digital platform.”