One of the most anticipated trends in payment industry is adoption of real-time payments. The demand for seamless, instant and easy of payment has reached a critical point. While the banks worldwide are getting to launch their instant payment services one must understand and overcome a variety of challenges that it will come with it. Real-time payments will soon need Real-Time posting of the payments.

The Os of Open Finance:

Open Products: Open products are the building blocks of financial marketplaces where a bank can augment and supplement its current offerings by including products - both financial and non-financial from partners to provide choice and personalization to customers.

Open Processes: Business processes in banking can be significantly improved by enabling data and capabilities sharing between a bank and digital enterprises. Business processes for a lending decision can be improved by sharing alternate data for creditworthiness assessment whereas post-disbursement monitoring can be improved by monitoring the loan amount utilization and business volumes of the borrower.

Open Innovation: Open innovation is a term used to promote a digital age mindset toward innovation that runs counter to the secrecy and silo mentality of traditional corporate research labs. Banks may create a collaborative innovation culture with startups by offering them support in terms of infrastructure, operational data, beta launch, etc.

Open Assets: In the digital world, the way banks can create and share digital assets will define the future of banking as it will enable banks to embed themselves in emerging themes without taking the undue risks of operationalizing the entire innovation lifecycle. Banking as a Service, Payments as a Service, Compliance as a service, etc. are some of the routes that are enabling banks to unlock their assets for collaborative value creation.