PIVOTAL ROLE OF ANALYTICS IN OPEN BANKING
Open banking provides an ecosystem comprising banks, application program interface (API) developers, security providers and regulators to make ‘customer experience’ more holistic and rewarding. To make this a reality, ‘analytics’ will play a pivotal role for all players. Analytics in near-real time will drive and prioritise introduction of new products, services and their deployment mechanisms. Analytics will be leveraged to improve risk and compliance in near-real time by all players on the open banking canvas. Hence, operational risks of the open banking system will be mitigated to an extent that is acceptable to all players in the ecosystem. This article discusses the role of and adoption of analytics by various players in the open banking system.
The bank and the customer
Open banking being adopted by banks is a requirement in the digitised and connected economy of the 21st century. Sharing customer (individual or business) data that banks historically held will improve customer experience. He or she may choose to utilise information in conjunction with other sources of financial data for better planning and investment. This would enable the customer to transact, lend and invest money judiciously. As customer rights come to the fore, the bank is required to share customer information as authorised.
Jul-Sep 2017 Issue
Tata Consultancy Services Limited