How Open is Open Banking ?

Openness to world (Pic credit: https://unsplash.com)

What is Open banking ?

Why we need Open Banking ?

Oh! Dear!! I got Open banking. Tell me what’s the benefit of it!!

  1. Send | Spend: Whether you are buying a house, car or other luxury items. Most of the time you will prefer to take it on loan. Without getting proper insights about finance health people to buy it. The result is a decade long debt. everybody wants to live a debt-free life and retire before a certain age. The unnecessary loans can mess up your whole plan. Sharing the data and getting insights can be helpful in this.
  2. Lend: You want to take a loan. If your all account is connected in one place, it is easy to get a loan with better credit terms (If you have good record!!) irrespective of the country you are living and bank you are using. Imagine you shifted to a developed country (Singapore) from a developing country(India). Getting a loan is very difficult, only because of a lack of data. Transparently getting concrete records can solve this problem!!
  3. Lend: There are lots of private companies and microfinance firms which provide the loan. Lack of availability of data leads to fraud in many ways. The loan provider needs to have clear and transparent insights before giving a loan. Giving access to the data points to these providers will help in smoothing the whole process.

Connecting different account in one place can tell lot about finance health of individual as well as for company.

Ok! So by doing this will bank be in danger ?

Singapore banks in one place (Pic credit: Unsplash)

Ankit Raj

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Blockchain Engineer | Distributed system | Ex- Red Hat | Ethereum foundation grantee

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Ankit Raj

Ankit Raj

Blockchain Engineer | Distributed system | Ex- Red Hat | Ethereum foundation grantee

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