FINTECH IMPLEMENTATION IN REAL ESTATE AND

COMMERCIAL BANKING

Applied Management Research Project

Report submitted to the

Indian Institute of Technology, Kharagpur
for award of the degree

of

Master of Business Administration

by

Manik Goel
17BM60140

Under the guidance of

Prof. C. S. Mishra

VINOD GUPTA SCHOOL OF MANAGEMENT

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

April 2019
 CERTIFICATE

This is to certify that the report entitled ‘FINTECH IMPLEMENTATION IN REAL ESTATE AND

COMMERCIAL BANKING’ submitted by Manik Goel to Indian Institute of Technology

Kharagpur is a record of bona-fide research work under my supervision.

___________________________
Prof. C. S. Mishra
Associate Professor
Vinod Gupta School of Management
Indian Institute of Technology Kharagpur

Date: ____ / _____ / ______

 DECLARATION

I, Manik Goel hereby certify that this report titled ‘‘FINTECH IMPLEMENTATION IN REAL
ESTATE AND COMMERCIAL BANKING’”

a. Is an original work and has been done by me under the guidance of my supervisor;

b. I have conformed to ethical norms and guidelines while writing the project;

c. Whenever I have used materials (data, model, figures and text) from other sources, I have

given due credit to them by citing them in the text of the report, giving their details in the

references, and following ‘fair use doctrine’ policies of copy righted materials if any used in this

report.

_________________________
Manik Goel
Roll Number: 17BM60140
Dated:
 VIVA VOCE EXAMINATION

Date: ____ / _____ / ______

This is to certify that the report entitled “FINTECH IMPLEMENTATION IN REAL ESTATE AND

COMMERCIAL BANKING’’ submitted by Manik Goel to Indian Institute of Technology

Kharagpur was evaluated by us.

Panel Member Panel Member

Panel Member Panel Member

 ACKNOWLEDGEMENT

I take great pleasure in expressing my gratitude to Prof. C. S. Mishra for his valuable guidance
and suggestions for the successful completion of this project.

I would like to take this opportunity to thank all the faculties for helping me throughout the
project and providing me ample opportunities for practical learning and management skills
development. The learning I have imbued during this project would be invaluable for my career
development, going forward.

Finally, I would also like to thank Vinod Gupta School of Management, IIT Kharagpur for giving
me the opportunity to direct industry experience, which will definitely help us in future.

_________________________
Manik Goel
Roll Number: 17BM60140
Dated:
 TABLE OF CONTENTS

EXECUTIVE SUMMARY..................................................................................................1
CHAPTER I: INTRODUCTION.........................................................................................2
1.1 Current Situation..............................................................................................2
1.1.1 Commercial Real Estate (CRE) ........................................................2
1.1.2 Indian Banking Sector........................................................................2
1.2 Benefits of Blockchain......................................................................................3
1.3 Understanding NPA.........................................................................................4
1.4 Research Objective..........................................................................................5
Ob 1 ...........................................................................................................5
Ob 2 ...........................................................................................................5
Ob 3 ...........................................................................................................6
CHAPTER II: LITERATURE REVIEW..............................................................................7
2.1 Blockchain, Smart Contracts, and traditional record keeping in CRE..............7
2.2 NPA and past attempts…………………………………………………………….8
2.3 Technology Acceptance Determinants Models………………………………….9
2.3.1 Technology Acceptance Model (TAM)...............................................9
2.3.2 Unified Theory of Acceptance and Use of Technology (UTAUT).....10
2.3.3 Motivational Model (MM)..................................................................11
2.3.4 Risky Technology Adoption Models (RTA)......................................11
2.4 Related Research..........................................................................................12
CHAPTER III: RESEARCH METHODOLOGY...............................................................14
3.1 Research Procedure......................................................................................14
3.1.1. Ob 1: …………………………………………………………………….14
3.1.2. Ob 2: …………………………………………………………………….15
3.1.3. Ob 3: …………………………………………………………………….17
CHAPTER IV: FACTOR ANALYSIS……........................................................................21
4.1 EFA & CFA....................................................................................................21
4.2 SEM...............................................................................................................22
CHAPTER V: DATA……………………...........................................................................23
5.1 Data Collection & Sample Description...........................................................23
5.2 Analysis..........................................................................................................24
5.3 Results...........................................................................................................27
CHAPTER VI: CONCLUSION........................................................................................31
6.1 Future for Real Estate in the digital world………………………………………31
6.2 Predictions of NPA for 2020……………………………...………………………32
6.3 Suggestions in Technological and Individual Context…………………………33
CHAPTER VII: ANNEXURE...........................................................................................35
A1 : Questionnaire...............................................................................................35
A2 : References...................................................................................................38
 EXECUTIVE SUMMARY

The project attempted to seek how Fintech can be implemented in the Real Estate and
Commercial Banking. The main aim was to smoothen out the buying, selling, and record
keeping process in the real estate sector using FinTech. The second aim was to predict NPA in
Indian Banking System. Brief context to both the aims is provided below.

The block chain technology has been in the topic of much discussion due to its successful
application in the crypto currency known as “Bitcoin" which has investment experts, economists,
billion dollar financial institutes, big banks as well as governments taking sides on whether it
should be legitimized and used as a currency or make it illegal to be used as a means of
exchange. However, experts from different field like supply chain management and even from
the medical field are more interested in how the block chain technology’s decentralized record
keeping and numerous other benefits can be of use to them in their fields of work. This study
concentrates on the block chain being used for real estate record keeping, since most
geography’s have different procedures for record keeping, this study focuses on Haryana Urban
Housing Development in Gurgaon to check what the impact of applying the block chain
technology to this area in Gurgaon would have on investors, real estate agents, residents and
the government and how it should be implemented.

Banking sector is the backbone of any economy and plays a pivotal role in the development of
the nation. With the ever increasing need of involvement of banks in the economic growth
process, the issue of non-Performing Assets (NPAs) has assumed mammoth proportions.
Subsequently, as government in emerging countries pushes for financial inclusion, the risk
associated with bank assets increases. With this background, this research analyses problem of
non-Performing Assets (NPAs) in Indian banking system. I have devised a unique way to
forecast the NPAs in Indian banking system in 2020. The focus was to devise a model which
would play a pivotal role in forecasting future NPAs in the Indian banking sector. This was
achieved by looking into various methodologies and zeroing in on a model, which could be
implemented to help understand how NPAs could be predicted.

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 1. INTRODUCTION

1.1 Current Situation

1.1.1 Commercial Real Estate (CRE)

The commercial real estate (CRE) industry appears to take pride in keeping several aspects of
its operations secret, such as comparable lease rental rates, property prices, and valuations, to
create a possible competitive advantage. However, secrets are hard to keep—and may not
even be desired—in today’s hyper connected and digitized world. In response to greater
demand for transparency, technology advancements and the disintermediation by startups are
gradually making some of this information public. As a result, property-related information is
increasingly available in digital and paper form. However, a significant portion of the digitized
information is hosted on disparate systems, which results in a lack of transparency and
efficiency, and a higher incidence of inaccuracies that creates a greater potential for fraud.

Blockchain technology—a digitized, distributed ledger that immutably records and shares
information—could enable the CRE industry to address these inefficiencies and inaccuracies.
According to a 2015 World Economic Forum survey of 800 executives and information and
communications technology sector experts, 57.9 percent of the respondents believe that 10
percent of the global GDP information will be stored on blockchain technology by 2025.

Until recently, blockchain was known more as the technology powering Bitcoin. However,
industry players now realize that blockchain-based smart contracts can play a much larger role
in CRE, potentially transforming core CRE operations such as property transactions (purchase,
sale, financing, leasing, and management). Over time, blockchain adoption can have a broader
impact, as it can be linked to public utility services such as smart parking, waste, water, and
energy billing, and also enable data-driven city management.

1.1.2 Indian Banking Sector

Banking sector is one of the most crucial aspects of an economy and it is high time the Indian
banking sector starts to deliver the goods. Myriad schemes like Jan HUDAn, Make in India,
Direct benefit transfer require the Indian Banking sector to expand its spectrum of services and
widen its capabilities to cater to larger masses. The necessity of it can be understood by the fact
that India’s vision is to provide banking services to even its remotest geographical area and to
accommodate people belonging to both ends of the spectrum. However, the road towards

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fulfilling the vision would not be easy as expansion of this scale attracts major roadblocks and
challenges. The perennial problem of NPA will be the biggest issue to tackle as far as
expansion is concerned.

Stringent RBI guidelines have added to the woes as it has resulted in greater stress for banks,
since it is now asked banks to declare stressed assets. This has resulted in creation of
provisions for bad loans, resulting in transfer of NPAs in the bad loans category. This has
diminished profits and has created a negative sentiment for the banking sector.

The determination of NPA is very critical for a bank’s financial health and liquidity concerns. The
health of the assets of a bank is measured by its NPA ratio. Given that the public banks in India
are under a lot of financial stress due to accumulated non-performing asset, it is essential that
they are in a position to plan for the future so that remedial steps can be taken.

1.2 Benefits of Blockchain

As CRE companies invest in a multitude of technologies to meet their varied business
requirements, it may be worthwhile to first understand the benefits of blockchain technology.

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1.3 Understanding NPA
It is crucial to understand what actually results in the rise of NPA before we delve into further
details. Understanding the reasons for NPAs will provide a platform to better analyse the
methodologies used to predict NPAs. The causes for NPA can be attributed to many factors like
bribery, corruption etc. One of the many causes is the lack of effort from the service provider
during the pre-sanction process. Ignoring the process of conducting a due diligence process or
conducting it in a haphazard manner leads to increasing cases of NPA. An excuse for
corporations is blaming the economic scenario for defaulting; however forensic audits paint a
different picture. In majority of the cases, borrowers have wilfully defaulted or transferred funds
to other parties. The integrity of the promoter also comes into question in some high profile
cases like that of Kingfisher. Obtaining tangible col- lateral security is also a big headache
during credit enhancement as the loan amount outweighs the sales value of the attached
security by a considerable margin, thereby diluting the provision of SARFAESI Act
(Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest
Act). The after disbursement monitoring process is also porous as in most of the cases there is
no forensic audit after initial sanction of loan. There is a lack of due diligence for loan
disbursement of the sector, where interest of promoter lies and after disbursement, monitoring is
poor resulting in NPAs.
Corporate debt restricting scheme is another scheme which is misused by both corporations
and banks. The objective of the scheme was to help genuine debt ridden companies by offering
them flexible repayment terms and giving them time according to the economic scenario but the
corporation often misused it to cajole the banks to lower their interest rates, prolong the
repayment dates and so on. Sluggish Legal system, inappropriate technology, poor quality
management, improper monitoring and follow up processes, managerial deficiencies, and

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ineffective recoveries are other causes which results in rising NPAs.

1.4 Research Objective

This project is carried out under the following specific objectives:
1. To study the impact of block chain using smart contracts on real estate and provide a
roadmap for implementing the same. (Ob 1)
2. To propose a methodology for forecasting NPAs. (Ob 2)
3. To identify the major factors delaying the progress of FinTech diffusion in India. (Ob 3)

Ob1:
The geographic distribution is chosen due to fact that this project wants to determine the impact
of the block chain technology on not only consumers but also on the economic implications that
it would have on the real estate sector in Gurgaon, India as the real estate sector in Gurgaon is
worth billions of rupees and the impact if the block chain would be implemented would be
massive and which would affect millions of people residing in the city as well as investors
abroad.

The methodology which will be applied for this research paper is by making a questionnaire
which would be a universal one and would be filled out by real estate agents, developers,
investors, people who are currently working on the block chain technology in India as well as
people in the fintech space working in India.

The variables that are used are:

Independent Variable1: Block chain

Independent Variable2: Smart Contracts

Dependent Variable: Real Estate

Ob2:
There are many forecasting methods which can be used to predict the variable of interest. They
are broadly divided into two categories:

1) Regression models: Simple Linear Regression (SLR), Multiple Linear Regression,

2) Time series based methods: Moving Average, Simple Exponential Smoothing, Holt, and Holt-

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winter method.

Regression models are used for prediction purposes. Based on the trend of independent
variables, they predict the trend for the dependent variable. Since we will be predicting the
NPA’s in 2020 based on external factors, regression models are the best fit in this particular
situation. SLR could not be used because it gives the value of dependent variable (Gross
NPA’s) in terms of only one independent variable. NPA is often dependent on various factors so
this method will never give satisfactory results.

We finally conducted the analysis by MLR method.

Variables used are as follows:

Repo rate, Gross domestic product, Loans and advances, & Inflation rate

Ob3:
This project is aimed at exploring the prime factors affecting the diffusion of FinTech
technologies. Since FinTech is a very wide concept and is currently in a very niche state to
attain social awareness, typical case company is adopted to conduct the study with the major
research question being:

What are the major factors delaying the progress of FinTech diffusion in India?

A systematically structured study is designed to explore all the major factors affecting the
acceptance of FinTech in India. The main objective is to find out all the possible variables which
affect users’ adoption rate in terms of the differentiating features of FinTech products. The
extension to this objective is to propose a conceptual research model based on consumer
acceptance theories from information system field.

Four principal theoretical models, which are well- aligned to the special characteristics of
FinTech: Adoption of Risky Technologies (ART), Motivational Model (MM) the Unified Theory of
Acceptance and Use of Technology (UTAUT), and The Technology Acceptance Model (TAM)
will be used to devise the research model and construct the relevant hypothetical relationship
among variables.

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 2. LITERATURE REVIEW

Let us discuss the work done in these 3 objective questions.

2.1 Blockchain, Smart Contracts, and traditional record keeping in CRE

The world over, researchers claim that the block chain technology is how people in the future,
will be keeping records and histories of transactions and events and which would be very
beneficial if it was applied to the property sector but acceptance will take time as it’s a new
technology and can be complicated and as yet, the benefits do not outweigh the costs for
implementing such a technology. Explaining block chain to people with little or no knowledge of
technology can be a daunting task as it is really very difficult to assess where the exact or let’s
say correct starting point would be. One the easiest explanation is that is a tool for record
keeping and managing information about the transactions being conducted on that specific
network. The thing that makes it so unique is that all the users or nodes on the network has a
partial or complete copy of the transaction history on the block chain. What eradicates the need
for a central database is that, firstly, all the transactions are not only time stamped but also no
single user can change the data to create any unfair benefit for himself or any other party
involved. However, another approach to understanding the system that the block chain employs
is to call it an economic layer for the internet, similar to the internet if things, but for financial
transactions or transactions which involve assets to be exchanged amongst users without the
intervention of middle men or agents (Speilman, 2016).

A block chain network has the unique attribute that allows is to not only have a distributed
ledger but allows non-trusting members of the network to transact and interact with each other
without the need of a trusted intermediary while still being easy to verify whenever the need be.
A very useful and significant feature of the block chain is the use and exchange of assets of
value through smart contracts which enable transactions with the underlying assets being of
significant value. Therefore, the block chain is a revolutionary part of the internet of things and
especially for the world we live in as the technological advances are coming at such a rate that it
can be difficult to keep track. Thus, the block chain technology and smart contracts indeed do
have the potential to pave the way for, not only new processes inside organizations but also
innovative business models using distributed applications to drive business in the years to come
(Christidis & Devetsikiotis, 2016).

Smart contracts are although programmed much like the normal programming languages used

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today but differ in the way that they are user defined programs that stipulate regulations in
transactions of the underlying asset. Also, compared to outmoded financial or real estate
contracts, they would have lower legal and transactional fee and might be able to lower the
barriers for entry of new users (Kevin Delmolino, 2015).

The primitive methods of recording real estate data have had a significant impact in the
valuations of property in India. However, block chain technology has the capability to overcome
the problems arising from it like manipulation of data and inordinate delays. Therefore, an
incorruptible technology should be implemented. There is a difference in which land registration
and the keeping land records has evolved over the years. In India, throughout the colonial
period, forests and urban areas were excluded from the recording system and instead, areas
with potential for agriculture were documented. This was mostly due to the agricultural potential
of those areas for which the farmers had to pay taxes which had become one of the main
sources of the government income at the time. After independence, the newly formed
government of India decided to keep the same method of record keeping. Rural areas were
handled in the same way with the Revenue Department maintaining all the records of the land
as well as keeping a record of the tax collection from these areas and in urban areas, people
relied on deeds which were verified through the Stamps and Registration Department of the
locality. As time passed, little or no attention was paid in making this system up to date or
amending it to provide transparency. This has caused enormous gaps between the legislation
and the policy which can be blamed on the political influences of the country not taking it
seriously or for their own benefits and unfair gains (Bal, 2017).

2.2 NPA and past attempts

Researchers in the past have tried countless number of times to forecast a bank’s performance
based on certain macro-economic factors. Roger et al. (2011) focuses on forecasting recession
based on a bank’s commercial and industrial loan commitments. The paper emphasises on the
fact that a bank’s commitment of loans depends upon future interest rates hence can be used
as an indicator for nation’s growth Tobback et al. (2014) has forecasted loss from bad loans on
a country’s performance using linear regression models. The magnitude of NPA is
comparatively higher in public sectors banks than private sector banks (Singh, 2013). A high
level of NPAs also suggests high probability of a large number of credit defaults that affect the
profitability and liquidity of banks. A study on trends of NPAs in India from various dimensions
explains how mere recognition of the problem and self-monitoring has been able to reduce it to
a great extent (Meenakshi et al., 2010). On the similar lines, it was found that public sector

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banks in India, which function to some extent with welfare motives, have as good a record in
reducing NPAs as their counterparts in the private sector (ibid). The literature suggests that the
lending policies of various Banks were not proper due to having improper financing. Banks
should provide detailed information to the customer about their lending policy (Jain and Sheikh,
2012). Moreover, various Private Banks are not granting Loans outside India, so they could do
so to expand their business. They pointed out that instead of focusing on urban areas only, the
Banks should set up branches in the rural regions also which could improve their profitability
(Beck Roland et al. 2013). study the macroeconomic determinants of nonperforming loans
(NPLs) across 75 countries during the past decade. According to their dynamic panel estimates,
the following variables are found to be significantly affecting NPL ratios: real GDP growth, share
prices, the exchange rate, and the lending interest rate. In the case of exchange rates, the
direction of the effect depends on the extent of foreign exchange lending to un-hedged
borrowers which is particularly high in countries with pegged or managed exchange rates. In the
case of share prices, the impact is found to be larger in countries which have a large stock
market relative to GDP. None of the models have tried to forecast NPA values itself using the
macro-economic indicators and we have made an attempt to do the same using both step wise
regression as well as logarithmic regression.

2.3 Technology Acceptance Determinants Models

This part briefly introduces 4 models that will be used to describe the different sets of
acceptance determinants. Based on reviewed these review models, a research model will be
built and accordingly a hypothesis will be proposed.

2.3.1 Technology Acceptance Model (TAM)

TAM has been most widely used model in the information systems community (Chuttur 2009). It
was initially developed to explain the user acceptance of Information System based on
computer, and then it was widely accepted and applied to wide set of technological research.

The user adoption of IT is mainly determined by 2 major constructs: Perceived usefulness(PU)

and Perceived ease of use(PEU) (Davis,1989). PU affects the intentions directly, while PEU
affects the intentions indirectly.

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 Figure 1 : Technology Acceptance Model (Davis, 1989)

2.3.2 Unified Theory of Acceptance and Use of Technology (UTAUT)

The UTAT model absolute model constructed by the most decorated researchers in the tech
acceptance area. It takes into account the various dynamic influences such as user experience,
context of the organization, and the demographics (Qeisi & Abdallah, 2013). This model is
claimed to explain 70 % variance in usage intentions.

Figure 2 : Unified Theory of Acceptance and Use of Technology (Venkatesh et al., 2003)

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 2.3.3 Motivational Model (MM)
This model mainly deals with the psychological approach and tries to explain the human
behaviour by using motivation as the main determinant. Self Determination Theory (Deci &
Ryan, 1985) is based on a variety of reasons that lead to an action. Motivation is mainly divided
into 2 types : Intrinsic and Extrinsic.

Intrinsic motivation refers to doing something because it is by nature interesting to do. Extrinsic
motivation mainly deals with the expectation of reward. Yoo, Han and Huang’s (2012) research
indicates that intrinsic motivation leads to behavioural intentions while same can’t be said about
extrinsic motivation. Moreover, the result varied with varied demographics. So, all this research
suggested that cultural differences and type of tech also plays a major role in determining the
motivational model in IT domain.

2.3.4 Risky Technology Adoption Models (RTA)

Security is one the major concerns when it comes to the adoption of technologies dealing with
the monetary aspect of our life. Making mobile banking risk as one of their major focus points,
Gupta and Xu (2010) proposed the model mainly concentrating on risks and controlling factors
of user adoption.

They concluded that security awareness and technology risks directly affects the adoption rate.
And hence, they recommended that service providers from this risk laden segment should
emphasize on control issues and it should be properly advertised. This research however failed
to provide analysis on one of the important factor that is privacy, which is a major concern in this
era. Privacy plays a major role in user adoption rate and is included in the model suggested
later.

Figure 3 : Risky Technology Adoption Models (Gupta et al., 2010)

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2.4 Related research
In order to specialize and localize the determinants for this research project, relevant studies
related to FinTech acceptance conducted worldwide have been carefully reviewed.

Table 1 Research paper review

S. No. Title Author/s Finding / Gap
1 User acceptance of mobile J.J. Chen, Use of Technology Acceptance
payments: a theoretical C. Adams Model (TAM) and Innovation
model for mobile payments Diffusion Theory (IDT) to
investigate user acceptance of
mobile payments
2 Drivers of digital wallet R. Sharma, Trust, Expressiveness, Safety
usage: Implications for S. Goswami, and Security in online payments
leveraging digital marketing K. Taheam are other important factors that
play a vital role in the user
adoptability of digital wallets
3 The role of technological C.-P. Lee, Behavioural Intention,
and social factors on the M. Warkentin, Technological Anxiety and
adoption of mobile payment H. Choi Stage of Technology Life Cycle
technologies often determines the rate of
adoption of a new technology
amongst the user
4 Study on Introduction of P. Garg, Presence of rural workforce
Cashless Economy in India M. Panchal (90% of total Indian workforce)
2016: Benefits and coupled with the quality of
Challenge’s telecom infrastructure in the Tier
2 and Tier 3 cities at large
affects the rate of India turning
into a cashless economy
5 An Analysis of the Sung Youl Park TAM has proven to be a
Technology Acceptance theoretical model in helping to
Model in Understanding explain and predict user
University Students’ behaviour of information
Behavioural Intention to technology
Use e-Learning

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6 The role of the technology Hyun-Hwa Lee, TAM :perceived usefulness,
acceptance model in Ann Marie Fiore, perceived ease of use and
explaining effects of image Jihyun Kim perceived enjoyment,
interactivity technology on significantly enhanced
consumer responses consumer attitude and
behavioural intention towards
an online retailer
7 The Fintech 2.0 Paper: M. Belinky, It is important to collaborate as
rebooting financial services E. Rennick, it provides many benefits and to
A. Veitch take actions at correct time to
encash opportunities
8 Fintech in Nigeria B. Ademola Provides an analysis of the
current scenario of Fintech in a
country very similar to India
9 The Fintech Boom and F. Desai Listed the entire evolution of
Bank Innovation Fintech and role analysed the
role of banks in bringing about
this innovation
10 Ease of Doing Business in A. Padmanabhan India has a huge potential in
India’s Tech Sector terms of returns and thus large
amounts of foreign investments
is to enter India thus boosting
the pace

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 3. RESEARCH METHODOLOGY

3.1 Research Procedure

3.1.1. Ob 1:
The geographic distribution is chosen due to fact that this project wants to determine the impact
of the block chain technology on not only consumers but also on the economic implications that
it would have on the real estate sector in Gurgaon as the real estate sector there is worth
billions of rupees and the impact if the block chain would be implemented would be massive and
which would affect millions of people residing in the city as well as investors abroad.

The methodology which will be applied for this research paper is by making a questionnaire
which would be a universal one and would be filled out by real estate agents, developers,
investors, people who are currently working on the block chain technology in India as well as
people in the fintech space working in India.

Once that is complete, the data collected with analyzed using the latest SPSS software. SPSS
stands for Statistical Package for the Social Science. It is the most well-known software used for
analysis of data and has been used in numerous studies across the globe. It can perform all
kinds of analysis as well as handle large amounts of data.

Therefore, the research design was formed by deciding on the objectives of the study which
included block chain implementation first and then moving on to the research questions with
followed. This led to the development of the hypothesis and the questions being researched
upon. Next came the data collection and then analyzing the data through the latest version of
the SPSS Ver. 23 software and checking it through the correlation test to get the results which
then led to the conclusion and recommendations on the topic.

This research conducted in Positivism Paradigm, and Pure Quantitative research based
available constructs. The research is explanatory based on selected independent and
dependent variables we will explain the relationship of effect on Block chain and real estate. The
research conducted through Questionnaire adapted from previous empirical researches.

The research was conducted using a questionnaire. The questionnaire would have questions

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with close ended answers using the Likert scales which offer a range of options for answers in
questionnaire’s so that the subject’s most accurate response could be recorded. They typically
do have a moderate point with end perspectives ranging from very good to very bad. Therefore,
the Likert scale would assist in getting degrees of opinions that would be more precise than
answers with only two options.

The impact of applying the block chain to the real estate sector for this study is determined by
using a questionnaire with thirteen questions to get information from real estate brokers
operating in the buying and selling of properties in HUDA as well as developers of property,
people using the block chain technology for their daily purposes as well as investors who
investing property in HUDA. These groups of people were selected as although their views may
differ, the study could get an accurate conclusion as to how the technology would impact the
real estate sector is this area in Gurgaon, India.

The variables that were used were:

Independent Variable1: Block chain
Independent Variable2: Smart Contracts
Dependent Variable: Real Estate

The conceptual framework is designed to test how the block chain technology would influence
the buying and selling of real estate in Gurgaon. Also, since all transactions are done on paper
and only have records maintained by a centralized digital register owned by the government
organizations which are responsible for real estate title registry so what part would smart
contracts play if they were implemented instead of the current system.

3.1.2 Ob 2:
To use MLR we had to determine the factors on which NPA’s in India depend on. Qualitative
factors cannot be modelled in the forecasting equations and hence they were neglected for the
purpose of this study.
The following 4 quantitative variables were used to predict NPA’s in 2020 of banking sector.

1) Repo rate
Repo rate is the rate at which the central bank of a country (RBI in case of India) lends money
to commercial banks in the event of any shortfall of funds. Repo Rate is generally related to the
Bank Prime lending rate as well as reverse repo and MLR. It is an indicator of the prevailing

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interest rate in the country. Interest rate and inflation has a cumulative effect on the economy
and ability of the borrower to pay back. Hence, repo rate is a crucial factor impacting NPAs.

2) Gross domestic product

A country’s GDP is the total market value of all final goods and services produced in a country
in a given year which is equal to the total consumer, investment and government spending.
GDP is a growth indicator of an economy. As GDP grows, loans and advances also grow and
hence it directly impacts NPAs. Moreover, when the economy is in shambles, corporate will not
be able to pay the debts which will thereby lead to an increase in NPA’s.

3) Loans and advances

Loans and advances are considered the most important factor while forecasting NPAs. As the
size of loans and advances increases, the proportion of NPA’s increase due to increase in risk
in that case.

4) Inflation rate
The index is a measure of the average price which consumers spend on a market-based
“basket” of goods and services. Inflation based upon the consumer price index (CPI) is the main
inflation indicator in most of the countries. Inflation rate in India is based upon the Indian
Consumer Price Index. As inflation rises it becomes cheap for borrowers to borrow money,
because of inflation purchasing power of consumer’s fall resulting in a drop in profits for the
companies. Combination of both these factors results in rise in NPA’s.

MAPE and bias are the two statistics which are used by organizations worldwide for choosing
the best forecasting model. They use MAPE numbers and subjective knowledge to choose the
final forecasting model. I did the same and MAPE was our deciding criteria for the forecasting
model.

Research was conducted in two steps.

1) Annual Data (4 factors) for last 11 years (2004-2011) was taken for Indian Banks. MLR
models were developed using combination of various factors. The best fit model was used to
predict the NPAs in the Indian banking sector in year 2020.

2) The same methodology is then used to predict the NPAs for SBI. In case of SBI I took

- 16 -
quarterly data. Finally, the best fit model was used to predict NPA for SBI in 2020.

3.1.3 Ob 3:

The empirical framework consists of 3 steps.

Based on the proposed conceptual model, the first step is to design a survey with questions
setting in accordance with constructs. A Likert 5-point scale was applied for each question with
“1 = Strongly disagree”, “2= Disagree”,”3= Neither agree or disagree”,”4 = Somewhat agree”, “5
= Strongly agree” except for the demographic variables.

The next step is to collect the data. IIT Kharagpur and Gurgaon were chosen as the research
place. The primarily idea is to get two sets of people. One who are very tech savvy and Two
people who are not so tech savvy. The questionnaire is accessed through a website link with all
the questions set as compulsory to answer.

The third step is to analyse the collected data. Both Exploratory Factor Analysis (EFA) and
Confirmatory Factor Analysis (CFA) will be utilized to analyse the measurement model with EFA
to enhance the exploration the factors and CFA to enable confirmation the factor structure.
Although many of the constructs adopted in the conceptual model have been validated in earlier
research, it is necessary to do the reliability and validity measurements with both EFA and CFA.

Structural Equation Model (SEM) will be conducted to measure the structural model afterwards
since SEM helps access the constructs and test the proposed theoretical relationships in a
unified and integrated manner (Gurski, 2014). By checking the goodness of fit indices for the full
structural model, both measurement model and structural model will be adjusted to reach a
superior empirical result, and then the hypothetical relationships between variables will be
examined as the last step in data analysis.

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 Figure 4 Research Procedure

Research Hypothesis Formulation

The primary purpose is to find out the possible variables which affect users’ adoption rate in
terms of the unique features of FinTech products and the second purpose is to propose a
conceptual research model based on consumer acceptance theories from information system
field. The third purpose of this research is to propose practical suggestions to the FinTech start-
ups / established players according to the research results. Therefore, the research framework
will be adapted from Chau and Hu’s (2002) three dimensions:

1) Technological context, refers to the characteristics of the technology itself, on the view of
the inherent features of the product or service, includes Perceived Usefulness (PU), Perceived
ease of use (PEU), and Price Value (PV) and is based on based on TAM and UTAUT.

Perceived Usefulness (PU) is defined as “the degree to which a person believes that using a
particular system will enhance the job performance”.

Perceived Ease of Use (PEU) is defined as “the degree to which a person believes that using
the system would be free of effort” (Davis, 1989).

Price Value (PV) is defined as the consumers’ cognitive trade-off between the perceived
benefits of the system use and the monetary cost for using it.

Hence, in FinTech context, the hypothesis are as follows:

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H1: Perceived Usefulness (PU) will have a positive influence on users’ intention.

H2a: Perceived ease of use (PEU) will have a positive influence on users’ intention.

H2b: Perceived ease of use (PEU) will have a positive influence on Perceived usefulness (PU).

H3: Price Value (PV) will have a positive influence on users’ intention.

2) Individual context, individual users are grouped into different customer segments with the
variables of Personal Innovativeness (PO), Social Influence (SI) and Perceived Need of
Minimalism (PNM) and are based on RTM.

Personal Innovativeness (PO) is defined as the willingness of an individual to try out new
information technology (Agarwal & Prasad, 1998).

Social Influence (SI) refers to individual’s internalization of the reference group’s subjective
culture (Thompson, et al., 1991).

Perceived Need of Minimalism (PNM) in this research, refers to the degree to which an
individual believes the lifestyle should be simplified.

Hence, in FinTech context, the hypothesis are as follows:

H4: Personal Innovativeness (PO) will have a positive influence on users’ intention.

H5: Social Influence (SI) will have a positive influence on users’ intention.

H6a: Perceived Need of Minimalism (PNM) will have a positive influence on users’ intention.

H6b: Perceived Need of Minimalism (PNM) will have a positive influence on Perceived
Enjoyment (PE).

3) Motivational context, Chau et al. (2002) use implementation context to apply to the specific
professional environment such as health sector. In this research, it is adapted to motivational
context to review the triggers that can stimulate users’ adoption intention. Variables are
Perceived Enjoyments (PE), Security Concerns (SC), and Perceived Information (PF) and are
based on MM.

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Perceived Enjoyment (PE) was subsumed under the intrinsic motivation by Davis et al. (1992)
and defined as the perception that users will want to perform an activity for no apparent
reinforcement apart from the process of performing the activity itself (Davis et al., 1992).

Security Concerns (SC) is defined as the beliefs of the buyers on the sellers’ inability and
unwillingness to safeguard the monetary information from security breaches during transmission
and storage (Salisbury, Pearson, Pearson & Miller, 2001; Gupta et al., 2010).

Perceived Information (PF) is a new construct not included in any of the models introduced
before. It can be defined as the amount of information a company offers to the buyers. This
could be any information that buyers get unintentionally in the means of commercial in TV or
friend’s recommendations, and intentionally through searching online, browsing from the
website of technology.

Hypotheses are as follows:

H7: Perceived Enjoyment (PE) will have a positive influence on users’ intention.

H8: Security Concerns (SC) will have a negative influence on users’ intention.

H9a: Perceived Information (PF) will have a positive influence on users’ intention

H9b: Perceived Information (PF) will have a negative influence on Security Concerns (SC).

Figure 5 Conceptual Model

- 20 -
 4. FACTOR ANALYSIS

4.1 EFA & CFA

Factor analysis enables researchers to evaluate the relationship between collected data their
theoretically expected structures of the target constructs, thereby to determine to which level the
planned measurements reach the measuring purpose (Matsunaga, 2010). Two methods of
factor analysis will be employed in this study: Exploratory Factor Analysis (EFA) and
Confirmatory Factor Analysis (CFA).

Exploratory Factor Analysis (EFA) is a standard statistical technique for evaluating

measurement models (Kline, 2010). EFA is a board term including centroid, principal
components, and principal factor analysis methods which allow for deriving factors. EFA is used
to test unrestricted factor models thus all factors can load on the other factors. Researchers
usually utilize EFA to identify the unobserved factors when they are unsure about the underlying
mechanisms of the target phenomena (Matsunaga, 2010), therefore, it can help explore the
actual correlations between items, rather than just theoretical. It is not necessary to
predetermine the number of factors or predefine which items will load on which factors before
EFA.

Confirmatory factor analysis (CFA) is used to evaluate the relationships between the
observed variables and the latent variables (Baker & Kim, 2004). After hypothesizing a priori
model of the underlying structure, researchers utilize CFA to examine whether the model fits the
data adequately and to study the measurement invariance and population heterogeneity
(Bandalos, 1996).

EFA enables to explore the factors and CFA enables to confirm the factor structure extracted in
EFA. In spite of the fact that many of the constructs adopted in the conceptual model have been
validated in earlier research, it is necessary to do the reliability and validity measurements with
both EFA and CFA. For one thing, FinTech is new and a novel topic to be studied under
acceptance model. For another, constructs such as perceived information (PF) and perceived
need of minimalism (PNM) are not widely studied. Therefore, both EFA and CFA will be
employed in the process of data analysis.

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4.2 SEM

Structure Equation Model is a comprehensive statistical modelling tool widely used for testing
hypotheses about relations among observed and latent variables (Hoyle, 2012). Compares to
multiple regression, SEM provides more goodness of fit indices for the full structural model
(Hair, Babin, & Anderson, 2010). The reasons to apply SEM in this study is not only because of
the superior empirical results that it can provide, but also for the fact that the proposed
determines in the conceptual model are entirely based on perceptions, thus they all belong to
latent constructs, which makes this study a good case to for this advanced technique. The
primary purpose of conducting a hypothesized conceptual model in SEM is to finally confirm a
model that should not only statistically fit the data well, but also adequately enhance each
parameter of the model to give a substantively meaningful interpretation (Joreskog, 1993).

Most research followed a basic six-step procedure of SEM. It is manifested in the flowchart that
the first step is to specify the model by determining which parameters to be fixed or free; The
second step is to evaluate model identification, the idea is to have at least one unique solution
for each parameter estimate from the observed data; The third step is to estimate the model and
the fourth step is to test the model fit and assess the model validity; The fifth and sixth steps are
to specify the structural model and to assess structural model validity. CFA involves step one to
four and SEM is in step 5 to 6. This is also the data analysis procedure in this study after EFA.
(Kline, 2011, P 92).

Figure 6 Flowchart of SEM

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 5. DATA

5.1 Data Collection & Sample Description

Ob 1:
The research was conducted using a questionnaire. The questionnaire would have questions
with close ended answers using the Likert scales which offer a range of options for answers in
questionnaire’s so that the subject’s most accurate response could be recorded. They typically
do have a moderate point with end perspectives ranging from very good to very bad. Therefore,
the Likert scale would assist in getting degrees of opinions that would be more precise than
answers with only two options. The impact of applying the block chain to the real estate sector
for this study is determined by using a questionnaire with thirteen questions to get information
from real estate brokers operating in the buying and selling of properties in HUDA as well as
developers of property, people using the block chain technology for their daily purposes as well
as investors who investing property in HUDA. These groups of people were selected as
although their views may differ, the study could get an accurate conclusion as to how the
technology would impact the real estate sector

Ob 2:

1) Annual Data (4 factors) for last 11 years (2004-2011) was taken for Indian Banks. MLR
models were developed using combination of various factors. The best fit model was used to
predict the NPAs in the Indian banking sector in year 2020.

2) The same methodology is then used to predict the NPAs for SBI. In case of SBI we took
quarterly data. Finally, the best fit model was used to predict NPA for SBI in 2020

Ob 3:
The study is about users’ acceptance research in India, hence all the chosen respondents are
either Indian or currently live in India. The questionnaires can be accessed through a website
link. 230 invitations to the link were sent to Facebook friends and returned 122, which reached a
response rate of 53%. Among the 122 responses, 5 of them was uncompleted, thus 117 were
used for data analysis. All the questions were set as compulsory to answer, only the completed
ones can be returned, thus there was no missing data and the data screening procedure was
done by the questionnaire website automatically.

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5.2 Analysis

Ob 1:

The Cronbach’s Alpha value shows that the reliability of collected data from the respondents is
0.70 which in percentage is 70%. This result is more than acceptable since the minimum
requirement of acceptability is 70%. It further shows that the results are consistent and reliable
for further analysis. Hence, the block chain is considered as significant factor as found through 5
items on Likert-scale with consistency of the responses at 70%. The above table shows the
responses over Smart contract. The Cronbach’s Alpha value shows 0.60 which means 60%
data is consistent. The collected data over the items of the Real estate are consistent in nature
and further tests applied to see the impact of the block chain to the real estate sector using
smart contracts.

Ob 2:

The data is collected for all the above quantitative factors for SBI from 2010 Q2. In total there
are 23 data points.

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 Repo Loan &
Year Q CPI CPI% GDP (B $ ) NPA (Rs Cr)
Rate advance
2015 Q4 238.63 6.32% 2066 7.25 72,791.73 1,300,026
2015 Q3 237.94 5.14% 2061.63 7.5 56,834.28 1,232,545
2015 Q2 236.52 6.10% 2057.26 7.75 56,420.77 1,209,648
2015 Q1 236.11 6.28% 2052.89 7.75 56,725.34 1,198,903
2014 Q4 238.34 2.07% 2048.52 8 61,991.45 1,209,829
2014 Q3 238.03 1.66% 2001.84 8 60,712.38 1,148,901
2014 Q2 234.81 0.76% 1955.16 8 60,434.24 1,103,090
2014 Q1 236.29 1.51% 1908.48 8 61,605.35 1,060,689
2013 Q4 233.5 1.76% 1861.8 7.5 67,799.33 1,045,617
2013 Q3 234.14 1.18% 1854.295 7.25 64,206.3 978,115
2013 Q2 233.04 1.50% 1846.79 7.5 60,891.46 926,919
2013 Q1 232.77 1.47% 1839.285 7.75 51,189.39 916,841
2012 Q4 229.47 1.66% 1831.78 8 53,457.79 978,115.31
2012 Q3 231.4 1.99% 1832.7875 8.5 49,202.46 926,918.78
2012 Q2 229.6 1.73% 1833.795 8.5 47,156.38 897,248.835
2012 Q1 229.39 2.65% 1834.8025 8.25 39,676.46 867,578.89
2011 Q4 225.72 3.56% 1835.81 8 40,098.43 846,265.96
2011 Q3 226.88 3.87% 1803.97 7.25 33,946.31 790,601.23
2011 Q2 225.69 2.68% 1772.13 6.5 27,768.28 773,660.34
2011 Q1 223.46 2.68% 1740.29 6.25 25,326.29 756,719.45
2010 Q4 217.96 1.05% 1708.45 6 23,437.75 718,734.465
2010 Q3 218.43 1.14% 1622.69 5.75 23,204.59 680,749.48
2010 Q2 219.79 1.78% 1536.93 5 20,825.22 642,764.495

Source: Annual Report SBI Corporate Website (“10-” 15)

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Ob 3:

Demographic analysis is as follows

Validity Assessment

Reliability as discussed in the former section refers to the consistency or stability of the data to
which degree the measurement can be repeated and confirmed by further analysis (Rosnow &
Rosenthal, 1999), and it is well measured by Cronbach’s alpha. While validity is defined as the
correspondence between a factor and the operational procedure to manipulate the factor (Tiko,
2015), that is, to check whether the chosen measurement can actually measure what it is
intended to do (Cahill, 2006). Two types of validity are generally discussed in EFA: convergent
validity and discriminant validity. Convergent validity shows the ability of measurements items to
capture a single factor and it can be verified when items within one factor have a high
correlation with each other (Cahill, 2006). It is proved in the modified matrix that, all the items
show highly loadings to the corresponding item, thus convergent validity is supported in EFA.

- 26 -
Discriminant validity, also known as divergent validity, refers to the degree to which one factor is
different from the others (Hair et al., 2010). It assesses the ability of measurement items to
distinguish between factors. The correlation matrix below is recommended to measure
discriminant validity (Fornell & Larcker, 1981). According to Kline (2005), the value of correlation
for factors greater than 0.85 is a serious measurement, it shows the fact that two factors are
measuring the same thing. And the one below 0.7 is acceptable. The table below shows that all
the values are less than 0.7 which proved discriminant validity.

Table 2 Component Correlation Matrix

5.3 Results

Ob 1:
The responses show that people in the real estate sector as well as people using block chain
would like the system to be transparent so that all users can see what the volume is as well as
the process of these properties so that buyers, so they may get accurate prices of their property
holdings in HUDA. They also agree that the government should also be able to view the prices
of these properties so that they can allocate taxes and duties accordingly.

However, the real estate agents did not agree on block chain being implemented as they do not
prefer so much visibility of the prices and values of these properties, which included plots,
apartments and completed houses would cause their profit margins to go down and eventually

- 27 -
they would have to go out of business as buyers and sellers would be able to transacts without
any intervention from them but instead only digitally.

Whereas, investors and people who would potentially buy property as well as people using the
block chain agreed that it would be a better idea to implement the block chain of this real estate
sector as it would become a much better investment as well product if they knew what the
prevailing rates in the market was instead of being deceived by a broker or a middle man as
well the historical prices and rates could become a better indicator to forecast prices in the
future of these assets so that chances of a loss would be much less than it is now.

Ob 2:
5.3.1 MLR Analysis (Linear, Stepwise and Logarithmic) and Results for Overall Banking
Sector
In Multiple Linear Regression we have used a combination of independent variables (CPI, GDP,
Repo Rate, Loans and Advances) for finding out their relationship with the NPAs. It can be used
to predict the NPA of a given bank on the basis of the independent variables [10] [11]. The MLR
model is:

where,
Yi = Gross NPA for the quarter “i” (dependent/response variable),
Xki = independent/explanatory variable taken for regression such as GDP,
β0 = Y intercept,
βk = slope of Y with respect to Xki,
εi = random error in Y for observation “i”.
MLR models were developed using combination of all variables. The results are shown below:

For MLR we will choose the equation given by stepwise regression for the reasons mentioned
above. While performing Stepwise MLR all other assumptions (homoscedasticity etc.) were also
checked. We also explored the possibility of a nonlinear relationship between NPA and the
variables identified from stepwise regression. A logarithmic regression model was run between

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Ln (NPA) as dependent variable and Ln (CPI), Ln (GDP) & Ln (Loan & Advances) to check if
there exists a polynomial relationship between NPA and the mentioned independent variables.
The table below shows results from the logarithmic regression model.
We will calculate NPA in 2020 based on the above equation. In 2020 assumptions regarding the
independent variables are: CPI (X1) in 2020 = 6% (assuming stable inflation), Loans and
Advances in 2020 = INR 158,127 billion (Taking loans and advances growth rate of 20% year
on year as we expand the banking services), GDP in 2020 = 4189 billion USD (Taking growth
rate of 7% year on year). With this the Forecasted NPA = INR 7808 billion which is 4.94% of the
Average Loans and Advances of all scheduled commercial banks.

5.3.2 MLR Analysis (Linear, Stepwise and Logarithmic) and Results for Overall Banking
Sector
As discussed above the same model was applied on data from SBI to check the accuracy of the
model and predict NPA of SBI in 2020. The Results are shown below:

For multi-collinearity we performed linear stepwise regression. As expected with stepwise

regression we got only two significant variables CPI% and Loans & Advances. The important
point to notice here is that for doing step wise regression and accurate prediction we first
remove the seasonality component from raw data and then run step wise regression. We then
predict the values from the model and finally seasonalize the values to get final output. In the
entire process we have assumed multiplicative seasonality. The table below shows results from
stepwise regression.

A logarithmic regression model was run between Ln (NPA) as dependent variable and Ln (CPI)
and Ln (Advances) to check if there exists a polynomial relationship between NPA and the
mentioned independent variables. The table below shows results from the logarithmic
regression model.

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We will calculate NPA in 2020 based on the above equation. In 2020, assumptions regarding
the independent variables are: CPI (X1) in 2020 = 6% (assuming stable inflation), Loans and
Advances in 2020 = 2,093,704.87 crore (Taking loans and advances growth of 10% year on
year as we expand the banking services). With this the Forecasted NPA = 147,921 crore which
is 7.07% of the Average Loans and Advances of SBI.

Ob 3:
After all the reliability and validity operations and model fit adjustments, both EFA and CFA
demonstrated good measurement model, and SEM indicated an acceptable structural model.
Thus it is time to examine the relationship of the theoretical model by checking the hypotheses
established in the literature review section. As it’s shown in the table below, 4 out of 12
hypotheses were not supported, they are the perceived Ease of Use (H2a), Social Influence
(H5), Perceived Need of Minimalism (H6a), and Perceived Information (H9a) to positively
influence the behaviour intention to adoption of FinTech.

Table 3 Hypothesis Result

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 6. CONCLUSION

6.1 Future for Real Estate in the digital world

There are a number of impediments to the implementation of a Blockchain land registry in India.
For one, it requires extensive legislative and administrative overhaul, starting with an
amendment of the Constitution and the introduction of a comprehensive Titling Act. It will also
require a reconfiguration of the administrative regime currently overseeing land records.
Overcoming these structural barriers will be arduous, to say the least. However, the blockchain
ledger would be toothless without legislative support. Entries in the ledger would still only
provide for presumptive titles under the current legal framework and thus a conclusive land
titling law must be passed to mitigate future disputes.

There are also a number of infrastructural deficits. At present, only 34.8 percent of the Indian
population has access to the internet. This lack of access, along with poor literacy rates and
abject poverty, act as major roadblocks to expanding the reach of any digital application. And
though mobile data plans are priced competitively, they are still too expensive for a majority of
the Indian people. A positive development in this regard is the ambitious Pruthvi project.
Saankhya Labs in Bengaluru has developed a chip that uses television White Space, or wasted
spectrum bandwidth, to supply internet to scores of rural households. The project is currently in
the fieldtrial stage

The aim of this study was to determine the impact of applying the block chain technology to the
real estate sector in Gurgaon, India. For this, different models were explored, and a
questionnaire was also filled by subjects who are either working in the real estate sector in
HUDA or are investors ad well subjects who are using the block chain technology in their daily
life. The conclusion that was derived was that although most of the respondents wanted
technology to be implemented in this profitable sector of business, the people earning the most
from the trading of these assets, the real estate brokers would rather not have this technology
implemented in HUDA as it would enable any new or old buyer or seller to see the prices at
which these properties are being traded, which would cut into their profits as well as eventually
make them redundant.

This study recommends that the government of India should take serious note and should apply
the block chain technology to the real estate sector so that it is transparent in nature for the

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general population of the country as well as departments who are stakeholders in the real estate
sector for the government so that these transactions can be taxed accurately, unlike the current
system which is in place in HUDA, Gurgaon.

The new property regime would considerably cut down the role of government intermediaries in
facilitating property transactions. The company partnering with the government on this initiative
will be responsible for uploading the initial data on the blockchain. The blockchain can be
programmed to establish the veracity of this data through the use of smart contracts. Smart
contracts will ensure that transactions and titles adhere to the policies and regulations put in
place by the government. They can also be programmed to access court registries when
disputes are resolved and titles granted, cadastral surveys and other public records to
determine the accuracy of titles. Intermediaries, then, are only to observe the network and raise
the alarm if there is any evidence of tampering. Even if they graduate to entering the data
themselves, they cannot cheat the system as it will not accept a change that does not match the
information in the public records.

Despite the sizable barriers to implementation and adoption, the current government's fervor for
digitisation helps maintain an optimistic outlook towards the future of this technology. If the
government can help overcome infrastructural, institutional and regulatory hurdles, the
blockchain land registry, coupled with robust titling legislation, may yet prove to be the best way
to deliver a secure, transparent and efficient land records system in India. It will help expunge
many of the deficiencies inundating the current system. As stated earlier, the technology offers
an innovative solution to a variety of issues plaguing the country. And while it is by no means a
panacea, it carries advantages that far outweigh any negatives that may ensue from its
implementation

6.2 Predictions of NPA for 2020

The linear stepwise regression model was used to forecast NPAs for Indian Banking Sector and
it was also used to predict the same for SBI, as a special case. The model predicted that if the
current path was treaded, the issue of NPAs would snowball into a major problem with serious
repercussions. As far as the Indian Banking Sector is concerned, it was seen that bad loans
would amount to INR 10808 billion which is 4.94% of the Average Loans and Advances of all
scheduled commercial banks. The forecasting for SBI showed a grim picture where the bad
debt would rise to INR 2479.21 billion, which would be 7.07% of the Average Loans and

- 32 -
Advances of SBI. The results point that the need of the hour is NPA control so as to avoid the
serious consequences that the future holds for us. We also covered various causes for NPAs
and their possible solution which could prevent a loan from converting it into an NPA.

6.3 Suggestions in Technological and Individual Context

Theoretically based on TAM and UTAUT, technological context focuses on the inherent
characteristics of FinTech, among which Perceived Usefulness (PU) and Price Value (PV) were
found to have direct influence on behaviour intention while Perceived Ease of Use (PEU) was
found to indirectly affect behaviour intention through Perceived Usefulness (PU). Based on the
product itself, suggestions can be proposed as follows.

Theoretically based on RTA, individual context focuses on the personal awareness and aims at
defining the target group for Plastc Card. According to the research result, Personal
Innovativeness (PO) was the most influential factor affecting behaviour intention, Social
Influence (SI) was not supported to have influence in actual intention, and Perceived Need of
Minimalism (PNM) was found to directly influence perceived enjoyment and therefore directly
influence the behaver intention, which might implicate that, the target group or potential early
adopters of Plastic Card are a group of innovative individuals who would like to try new things
and might also be a minimalist.

Taking part in the well-known innovative technology competition would be a good chance to
catch innovative individuals’ eyes. For one thing, the host of the competition would make
attempts to largely promote the information of promising participants, which can be regarded as
another propaganda way. For another, the audiences are usually composed of investors,
journalists, and innovative individuals, thus regardless of the competition result it is a good time
to gain investments, reports, and fame.

Another possible way to reach as many innovative individuals as possible is to post messages
in all kinds of consumer technology websites or forums. The related information and the
demonstration video can be widely distributed together with a link directs to the company
website. In the meanwhile, inviting the famous journalists from prestigious media to write
viewing reports and assessment articles is also an effective way to reach innovation individuals,
which might arouse the curiosity of readers and also generate a discussion of the product and

- 33 -
hence enlarge the popularity.

On the other hand, in order to attract possible minimalists’ users, except for posting information
on the specific websites and forums, the most well-known minimalists can be invited to use
Plastic Card. It is obvious that they would play the leading role to attract the other pursuers of
minimalism to start the use of Plastic Card and therefore to increase the sales and crease a
unique image of minimalism.

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 ANNEXURE
A1: Questionnaire

How long have you been using internet for online transactions:

For each of the following questions, please answer by selecting the option that best represents your
level of agreement or disagreement

Strongly Agree | Agree | Neutral | Disagree | Strongly Disagree

1 | 2 | 3 | 4 | 5

Personal Innovativeness (PO)

PO01: I like to experiment with new

information technology
PO02: Among my peers, I am usually the first
to explore new technologies
PO03: If I heard about a new technology, I
would look for ways to experiment with it

Perceived Information (PI)

PI01: I have generally received enough

information about fintech

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PI02: I have received enough information
about the benefits of fintech
PI03: Overall, I think I have enough
understanding of fintech

Social Influence (SI)

SI01: People like me should use fintech

SI02: People who are important to me might
think I should use fintech
SI03: Most of my peers are using it, so I
should also use it

Perceived ease of use (PEU)

PEU01: I think it is easy to download

application programs from internet using
Fintech Service
PEU02: I think it is very easy to complete
transactions using Fintech Service
PEU03: I think it is easy to get started using
Fintech Service without reading the service
manual
PEU04: I think it is easy to learning Fintech
Service without spend too much time

Perceived usefulness (PU)

PU01: I think using Fintech Service will not

be limited by time and location restriction,
which is helpful for me
PU02 : I think using Fintech Service can make
life more convenient
PU03 : I think I can rapidly obtain information
using e Fintech Service
PU04 : I think using Fintech Service can make
me more efficient

Perceived enjoyment (PE)

PE01: Using fintech would be fun

PE02 : Using fintech would be pleasant
PE03 : Using fintech would be enjoyable

Brand & Service trust (BS)

BS01: I have confidence in Fintech Service

provided by enterprises
BS02: I believe the transaction process and

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results of Fintech Service are correct
BS03: I believe the transaction system of
Fintech Service is secure

Attitude toward using (AU)

AU01: I think it is very convenient to look up

information using Fintech Service anytime
and anywhere
AU02: I think using Fintech Service is a good
idea
AU03: I like the idea of using Fintech Service

Behavioral intention to use (BI)

BI01: I want to use the services provided by

Fintech Service
BI02: I plan to use Fintech Service to connect
information
BI03: I want to use Fintech Service to connect
information
BI04: I predict I would use Fintech Service to
connect information

Perceived need of minimalism (PNM)

PNM01: I want to use the services provided

by Fintech Service
PNM02: I prefer the ̈less stuff = more joy ̈
lifestyle
PNM03: I am accustomed to simplicity

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