December 3, 2021

Open Data: An Intriguing Implementation – A brief

Open data is information that anybody can use, re-use, and redistribute it freely, except for attribution and share-alike requirements.

Although a growing amount of low-income people are adopting formal financial methods, many aren’t taking advantage of all its advantages. New platforms for sharing data and payment adaptability could foster innovation by giving access to client data

When these advancements, competent players can create a wide range of new goods and services that are more efficient.

They also offer clients more financial options at reduced costs. More open data and payments would benefit millions of low-income people into the formal financial system.

However, the very institutions that promise so much in terms of inclusivity and progress also pose new risks. Sharing customer data among many players increases the danger of information leakage.

Lower-income people have fewer assets and are much more prone to be technically or economically ignorant. Building systems that incorporate millions of impoverished people will take more than unbridled innovation; it will take intentional action and dialogue between public and private sector players to shape updated information sharing and payment frameworks.

Data sharing principles:

In the open data era, established frameworks must evolve to accommodate consumer-centric advancements. These models should be built on principles, be adaptable, and agile. The financial institutions should protect the personal data s, according to data security guidelines. Consumers, companies and the economy should all benefit from value creation that is democratic in nature. Institutions that send information will be responsible for upholding inclusive norms that encourage interoperability and standardization.

Control, security, value, fairness, and accountability are all universal elements in the Open Data approach.

Network effects:

The addition of additional supplementary datasets does have the ability to uncover interconnections and facilitate evidence-based, agile decision-making

Thus this enables the firms to innovate as the open data world moves from #OpenBanking to #OpenFinance to an open economy.

Security first:

In the digital economy, security is the bedrock of innovation, and without trust, no product or service can scale.

Implementation of Open Data

Different jurisdictions have addressed implementation in different ways

India: In order to promote data sharing between regulated financial institutions, India designed the Data Empowerment and Protection Architecture (DEPA) and Account Aggregator (AA) framework. The use-cases that build on this could lead to financial access to a larger part of the public, such as MSME loans through the Open Credit Enabling Networks (OCEN).

UK: The UK introduced open banking regulations with 9 banks which are obliged by regulated third-party suppliers to enable data exchange.

Europe: The Europe allows Customer-permitted sharing of bank accounts information with regulated third parties under the Payment Services Directive 2 (PSD2).

Australia: By introducing the Consumer Data Rights (CDR) for the banking sector, Australia has taken a cross-sector and cross-industry approach to open data. By data sharing, other businesses, such as energy and telecom will also benefit.

Singapore: The Singapore Data Financial Exchange (SGFinDex), which is based on Singapore’s National Digital Identity (SingPass), enables data to be transmitted across governmental bodies and financial firms.

Now that you know what’s Open data – Download our report here (will attach the open banking whitepaper file).

Visit CAMSPay to know more.

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