According to Deloitte’s release on open banking, data protection, data sharing, and cybersecurity have appeared as the top attention fields for banks and customers.
“In the survey, around 70% of respondents feel that more prominent importance should be given towards data protection by companies,” said the ‘Open banking: Unleashing the potential of data and embracing new opportunities’ report.
Deloitte announced the paper’s insights are backed by comprehensive research, prior work, and credentials, complemented by a questionnaire to understand customer requirements with 400+ survey respondents across age groups and communities.
The release further stated that more than 80% of respondents are uncomfortable sharing accounts’ trade history, indicating a call for all financial institutions (FIs) to ensure the customers that their data is protected.
Recognizing that banks and the customers are concerned about data sharing, it declared, “Data protection and cybersecurity are the top apprehension areas for all age groups, followed closely by suspicion towards third-party access to data and transparency on data regulation”.
Over the years, the significance of data has reached unparalleled levels. Countries empower customers with passage to institutions of their preference, while jurisdictions witness several approaches to open banking policy and implementation based on administrative favourability and industry capability.
It stated that the FIs also have understood that they are now guardians and not owners of data and are attempting to try out alternative income streams after obtaining customer approval.
Sandeep Sonpatki, Partner, Deloitte India, said the pandemic’s onset had helped embrace digital and API-based banking in the nation, with most salaried surveyees already being extremely satisfied and comfortable with digital banking.
With the Coronavirus’s incipience and the centre towards digitization, the report said it assumes the next couple of years will see a notable shift towards open banking amongst Indian FIs. Businesses will invest in developing core capacities to address customers’ critical requirements.