Open banking: Unleashing the power of data and seizing new opportunities
Traditionally, banks have been living with data silos, lacking an incentive to share the information with other players in ecosystem. But now, regulators across the world are looking to provide consumers with greater independence and ownership of their data and are supporting financial institutions (FIs) that are working to enhance customer experience. The phenomenon of Open banking thrives on this fundamental. Customers are now more empowered as they have a choice to share their data and are increasingly more educated with respect to their financial position through a host of innovative solutions being developed by FIs.
This paper intends to answer some pertinent questions:
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The insights in the paper are supported by extensive research, past work, and credentials, complemented by a survey to understand customer needs with 400+ respondents across age groups and population codes. To add some perspective, we also conducted interviews with multiple Financial Institutions (FIs), including banks and FinTechs, to understand their focus areas in the short medium and long term, as well as the challenges faced while implementing open banking, and their potential solutions.
“The onset of pandemic has definitely given a boost to welcome digital and API based banking in India with most salaried respondents already being highly comfortable with digital banking. However, 69.3% of respondents felt that greater emphasis should be placed on data protection by the institutions, which makes it very crucial for banks embarking on a journey to develop API-enabled products and services, to have a well-defined roadmap to produce demand–driven solutions and to remain ahead of the curve while maintaining the principles of customer-centricity, security, and trust.”
Sandeep Sonpatki
Partner, Deloitte India