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Savings account APIs to transform retail banking in India
July 18, 2022
The report deep dives into the Indian landscape of savings account APIs, the innovation it enables and how this is changing the future of retail banking in India. It also presents the views of established and emerging fintech players in the Indian retail banking space, on various key aspects, ending with a proposal for a new regulatory model for a licensed BaaS intermediary. This will create a ‘superfintech’, enabling white-labelled front-end business correspondents, ‘neobanks’ and other fintech models operating on the bank-fintech partnership model.
The report highlights that APIs can ‘decentralise’ banking, thus changing the way savings accounts of the future will be opened, accessed and managed. Savings account functionalities like deposits, cash withdrawals, payments, funds transfers, among others, can turn into a set of APIs, each of which then becomes Banking as a Service (BaaS) products to be leveraged. For banks, these allow them to unbundle and enable core processes like account opening, transactions and account management through fintechs, creating new retail banking touch-points.
In the retail banking space, there are significant opportunities for fintech players including the so-called ‘neobanks’ to cater to new and untapped markets. Banks have also recognised the monetisation opportunity of fintech partnerships, and are continually increasing the products they via APIs and exploring new partnerships. In order to address this new-to-market audience, fintech players can leverage savings account APIs across the country to transform the retail banking experience for customers.
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