Connected financial services can create value, but customers and institutions need confidence in how data is shared, used and protected.
Connected services create new possibilities
When financial institutions and authorised partners can exchange data through secure, governed arrangements, customers may benefit from more relevant services and smoother journeys. Institutions can also reduce repeated data collection and improve decision-making where permitted.
Consent must be understandable
Customers should be able to understand what information is being shared, for what purpose, with whom and for how long. Consent should not be treated as a one-time screen that users click through without comprehension. Revocation and grievance mechanisms need to be practical.
Data quality is a business issue
Inconsistent records, outdated information and unclear ownership can undermine analytics and create friction across organisations. Institutions should define data standards, validation checks, lineage and processes to correct errors.
Secure the ecosystem, not only the institution
Connected finance expands the number of interfaces, partners and potential failure points. API security, authentication, monitoring, third-party assessment, incident coordination and secure software practices are critical across the ecosystem.
Governance builds adoption
Institutions should define clear accountability for data use, retention, access and incident handling. They should also measure outcomes such as reduced customer effort, fewer repeated requests, improved service completion and customer confidence.
The leadership takeaway
Open finance is ultimately a trust framework: value depends on useful data sharing that is understandable, secure and accountable.
Sources and further reading
- PwC India — Financial Services
- KPMG India — Intelligent, sovereign and scalable
Related reading
- Protean Launches KYC Onboarding and Reporting Solution
- India’s Digital Finance Boom Raises the Stakes for Cybersecurity
