Page 44 - Banking Finance September 2021

ARTICLE

OPEN

BANKING

IN INDIA

O pen banking is defined as the sharing and financial business models, specialized financial services and

leveraging of customer-permissioned data by
products are emerging and driving Fin Tech innovation in
banks with third party developers and firms to
areas such as P2P lending, wealth management, micro
build applications and services, including for
learning based decision analysis systems and robo-advisory,
example those that provide real-time payments, finance, smart contract, artificial Intelligence, machine
greater financial transparency options for account holders, etc. and have started to shape the regulatory engagements
marketing, cross-selling opportunities. Individuals and discourse. Integral to this discourse are the issues
jurisdictions may define open banking differently. concerning data sharing, data access and to a large extent
data democratization.
Technology has connected the entire world. Through the
internet connections and electronic gadgets the reach to In addition to the extensive focus on payments channels and
information, services and products has become child's play. transaction, accessing the financial data of the consumers
The innovative technology has enabled the banks and the is also looked on. Digital exchange of financial data can
financial institutions the access the untouched market become the building block for new emerging service models,
segments, people which remained unreachable. In the clearing inefficiencies in the process and venturing new
recent years, technology driven modes of financing, new product possibilities. Thus regulators acknowledge that
enabling a simplified framework for the financial information
About the author data exchange has the potential to transform the financial
systems and may lead to product innovation and provide
Hartosh Kuamr Srivastava better financial services to the consumers and end users.
Faculty, Union Bank Of India Therefore, the financial data access and distribution has
Staff Training Center significant implications not only for the concerned
Hyderabad
stakeholder institutions but also for future economic growth.

44 | 2021 | SEPTEMBER | BANKING FINANCE