‘Know what is open banking in layman term’

Let me explain you in layman term, what is open banking –  

So when you share your financial information (like your ATM card details, Bank receipts, Bank details, or you get registered on UPI) securely and electronically to other banks and authorized financial organizations for any payments, this process of sharing information is called open banking.

The next question will be, what is the use of open banking?

Earlier, mobile phones were only used for calling, now with third-party apps (PayPal, Razorpay, Paytm, Google Pay) installed in smartphones, people can send or receive money from anywhere around the world.  

Now, a person can get an instant loan, with the touch of a button, earlier this wasn’t the case.

Open banking is not just useful for personal use but for businesses too.

In order to facilitate monitoring of worldwide operations, a company with multiple markets could combine its accounts from various banks into a single dashboard.

In order to offer personalized promotions or loyalty benefits that are specifically relevant to a customer’s spending patterns, retailers can analyze transaction data.

Customers and businesses can lower the risk of financial loss by reducing the time it takes to identify unusual activity by instantly analyzing transaction data.

In conclusion, we all are part of open banking but can not explain it in simple terms, but guess what, not know!