Research & Analysis

Open Banking: How to Design for Financial Inclusion

This publication is also available in Spanish and French.

Open banking regimes allow a wide range of users, including fintechs, to access the customer data locked inside banks and other financial institutions to develop innovative financial products and services that are lower cost and better suited to the needs of consumers. While many policy makers and regulators in emerging and developing markets recognize the potential benefits of open banking regimes, they are uncertain how to design them in ways that support their financial inclusion objectives. For this paper, CGAP has examined 12 regimes and identified the critical design components that are most likely to serve the needs of poor people.


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CGAP's Ariadne Plaitakis presented what types of open banking-enabled products and business models CGAP believes would be most beneficial for financial inclusion, and how these may alleviate pain points of low-income individuals.

When banks and other financial institutions responsibly exchange customer data with other providers, the result is better products for low-income customers.

Although growing numbers of low-income people are entering the formal financial system, many are not yet leveraging its full value. Emerging regimes for data sharing and payments flexibility have the potential to bypass traditional financial sector development and give poor customers better products and more choices.