Open Banking: The Operation Of AAs In India

With the arrival of the digital revolution, sharing of data has become easier as well as necessary. This requires the data generated to be apportioned to all who might need it for various purposes. This is where fintech (an amalgamation of the terms finance and technology) firms come in. The data generated by Financial Institutions including banks is shared with fintech firms through the means of application programming interface (APIs), which acts as the bridge between the two entities. Thus, APIs facilitate data sharing in the banking sector, which brings about the concept of open banking.

This has led to FIs offering consumer-centric and personalized services.

Open Banking can be defined as a mechanism where data is shared freely with the consent of the consumer, in order to generate the required analytics and provide financial and other services. Since consent is an essential ingredient of the concept of open banking, it is popularly regarded that open