How Open Banking Builds Revolutionary Banks in the Cloud

Key Topics of Discussion:

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1. Open Banking and Digital Transformation

Rakshith Rao begins by clarifying the nuances between neo banks, digital banks, and traditional banking models. He emphasizes how open banking, driven by an API-first mindset, has become a business driver, transforming banking from a technology perspective to a customer-centric model.

2. Impact of COVID-19 on Open Banking

The pandemic fast-tracked the adoption of open banking, demonstrating its potential in providing flexible, virtual banking services. This shift has led to a continued increase in third-party usage of open banking data and services.

3. Consumer Anxiety and Data Security

Addressing consumer concerns about data security and privacy is crucial. Rao highlights the importance of transparent data handling, consent management, and ensuring data security to build customer trust in open banking platforms.

4. Strategies for Successful Open Banking Programs

Key strategies include having a clear plan, understanding capacity for onboarding partners, implementing effective governance, making informed technology choices, and ensuring automation in API lifecycle management.

5. Challenges and Best Practices in API Lifecycle Management

Rao discusses the importance of viewing APIs as products, managing them throughout their lifecycle, and the necessity of a unified API lifecycle platform for successful distribution and compliance.

6. Avoiding Pitfalls in Open Banking Implementation

One of the major pitfalls Rao identifies is treating governance and compliance as an afterthought. He stresses the importance of integrating these aspects seamlessly from the start to avoid delays and ensure regulatory adherence.