Open banking, innovation and cloud technology are not synonymous but are very closely related. As open banking is about data, it creates an opportunity for banks to become data-driven businesses and provide personalized services in context for customers. To learn more about open banking and cloud technologies, Rashmi Sharma of Elets News Network (ENN), interacted with Satyajit Kanekar, co-founder, Mobileware Technologies.
Can you tell us about Mobileware Technologies and its USP?
Mobileware Technologies is focused on developing scalable solutions to simplify business payments. With our innovation-centric approach, we offer UPI interoperability and scalable payment solutions for businesses that need to make digital payments. We have also made a digital difference for a plethora of banks including nationalized banks, private banks, cooperative banks, urban and rural banks, NBFCs and other financial service providers. Our association with the National Payment Corporation of India enables us to create effective technology solutions for our banking, financial and insurance services customers.
At Mobileware, we also respond with a compliant and secure product to each new digital channel introduced by NPCI. At the same time, we continue to leverage our mobility base to develop consumer service SDKs that communicate with banking systems for payments and transfers.
Mobile software technologies created TransXT, a plug-and-play open banking API technology platform that allows businesses to get started instantly. What is the Banking API and what are its benefits?
API traditionally refers to the technical interface between software. Simply put, this interfacing capability facilitates a third-party application that syncs and connects to a bank’s tools and services. This helps banks and Fintechs to strengthen their specialties and complementary offers beyond their individual limits.
By integrating the API, banks can digitize their services and provide better customer experience through online banking, mobile banking and fintech apps. It’s simple, instant, secure and scalable. Therefore, API-enabled digital banking is becoming much more popular post-pandemic and this adaptation will lead to a massive change in the banking industry. It securely elevates the money transaction process between banks, corporations, fintechs, start-ups, and consumers.
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Open Banking has the potential to accelerate innovation and empower consumers. What is your point of view on this?
Today, businesses and customers want smart financial solutions. As a tool, open banking helps customers take control of their finances. One of the many goals of open banking is to improve the financial situation and quality of life of customers. Open banking fintechs can help customers take charge of their money, save and overcome monetary setbacks. This is done by providing customized solutions through the analysis of financial data. By focusing on stabilizing finances during times of inflation, open banking leads to customer-focused financial empowerment.
Innovation is another important aspect. The way we think about banks is constantly changing. Open banking has accelerated the transformation of the financial services industry with its products and services. It’s a win-win situation for everyone involved. With capabilities that go beyond the traditional payment system, it is designed to enable financial inclusion in the country.
Open banking and cloud technology are very closely linked. What do you think of the cloud solutions needed in this respect?
Open banking, innovation and cloud technology are not synonymous but are very closely related. As open banking is about data, it creates an opportunity for banks to become data-driven businesses and provide personalized services in context for customers. Some banks have already seized this opportunity, but to be successful, banks need to ingest, store and share greater volumes of data for a wider range of purposes. This enables the adoption of mission-critical cloud solutions. It facilitates the near real-time processing needed to align banking services with real-world dynamics. Additionally, it provides low-cost access to a working test environment with secure sandboxes based on industry best practices.
The cloud enables a bank to capture an unprecedented volume of customer data, analyze it, and deliver tailored services where needed.
India has witnessed phenomenal growth in digital payments. How to stay safe from cyber threats during digital transactions? What should be the holistic cybersecurity framework in the BFSI sector today?
India has been a cash-driven economy for decades and going digital has not been easy. Lack of digital literacy and awareness maximized risk levels. According to US cybersecurity firm Norton, India witnessed more than 18 million cyberattacks and threats, averaging almost 200,000 threats per day, in the first three months of 2022. find themselves in such situations, consumers should adopt the best practices such as using personal devices or networks when transacting online, monitoring financial statements, changing passwords regularly, using two-factor authentication for transactions, updating anti-virus software, etc.
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To take a proactive stance on cybersecurity, Indian banks need to start operationalizing threat intelligence to improve the preparedness of their security operations against different threats. This means that security teams must leverage threat intelligence to prioritize and execute threat detection, response, and management processes to focus more on the most critical threats.
Tell us about your projects.
At Mobileware, our plan is to enter international markets, which can be made possible by aligning ourselves with NIPL International and Bharat Bill Payment System (BBPS) in regions such as the Middle East, Europe and the Africa. Our next step includes partnering with local open banks, banking as a service (BaaS) and banking API platforms. The reach will be reinforced by another partnership with MasterCard and VISA.
All of this helps us create a one-stop-shop for all banking APIs under one roof for fintechs, enterprises, and other businesses.