Open Banking is new term that you see in financial services. It is so because Open Banking is modern word in financial technology as well. However open banking is different from retail banking or even mobile banking. Further open banking is not similar to home or internet banking. You can now keep reading to know about API banking in India and what is open banking and why does it matter?
What does open banking mean?
Open banking meaning is use of Open APIs. While here API full form is Application Programming Interface. This API helps to communicate between different software components. And there is use of APIs in banking sector.
Use of APIs in banking
In addition Open APIs help third party developers to make applications. Even they make services for a particular financial institution. As a result account holders benefit a lot because of open banking system.
Open banking means advanced financial transparency. This includes Open Data to Private Data. Therefore there is use of open source technology for this. You can also know about mobile banking and its uses.
Explain open banking
Now a days there is system of open banking. It means that user has network of data of financial institutions. However it is only through APIs or Application Programming Interfaces. On other hand you can check Open Banking Standard as well because it is important part of term open banking.
Define Open Banking Standard
Here Open Banking Standard means the way system creates and shares financial data. Further it specifies access of financial data also. It is because of this system only that people can share financial data in secure manner.
Apart from that now centralization will not be in use. As networks will play important role here. Additionally with use of networks there will be secure financial transactions with various financial organisations.
This list of benefits does not end here. And you find many more benefits in open banking in India. Another benefit here is that you transfer funds in simple and easy process. You can even compare product offerings. Finally such a method means that it is cost effective method. Thus to say in one sentence about open banking it is best experience in banking for customers.
Benefits of open banking
There will be better customer service than before. In addition as technology is very important part of open banking so you use latest technology. While these technologies are user friendly. Therefore you do not worry about technology and whether you can use it or not.
Rules and regulations of open banking system
If there is open banking system then banks must follow some open banking rules and regulations. According to these rules banks publish information online and offline. While here offline means in bank branch. This would in turn help in best transparency and service quality.
Further banks should tell customers about any overdrafts that are unforeseen. In such cases bank give grace period. In this time you correct whatever problem is there. Hence you avoid any overdraft charges.
Services of open banking
Other services of open banking are that you can go from one bank account to another bank account. Also API checks transaction data of customer. In this way you get information on best services and financial products such as best savings account with higher rate of interest.
There are other similar products to select from the list. However you must be very careful about security. As every single thing is online so you better know that you carefully use open banking system. In addition know about internet banking features on this site.