Mphasis: Open Banking Will Rewrite Financial DNA of Society

In an exclusive interview with Fintech Magazine, Ashish Devalekar, Senior Vice President and Head of Europe at Mphasis, delves into the transformative potential of open banking. 

Drawing on his extensive experience, Devalekar explores how this technology is set to revolutionise everything from personal finance to global monetary policy, while addressing crucial questions about trust, identity, and financial inclusion.

What changes do you anticipate open banking will bring to financial behaviour and money management in the coming ten years?

Open banking is set to redefine how individuals and businesses interact with their finances. 

By broadening access beyond traditional banking to include wealth managers, robo-advisors, and other providers, it creates a more interconnected ecosystem. 

Over the next decade, we can expect a shift from a transactional relationship with money to a more strategic, personalised approach. 

Regulations fostering fair competition will empower consumers with greater control, while banks adopting platform-like models will enhance accessibility. 

Personalisation, driven by AI, will allow banks to offer tailored financial solutions aligned to customers’ life stages. As open banking matures, society will likely view money not just as a means to an end, but as a tool for achieving broader financial goals. 

Those who embrace this transformation will unlock significant opportunities for financial wellbeing and inclusivity.

How can open banking technology serve as a catalyst for financial inclusion across developing economies?

Open banking has the potential to bridge financial divides in developing nations by enabling access to critical financial services for underserved populations. 

With strong regulatory frameworks and secure platforms, smaller financial institutions can compete on equal footing, fostering financial inclusion. 

By leveraging open banking, banks and fintechs can create solutions tailored to local needs—be it affordable credit, payment services or savings products. 

Collaboration with technology providers is key, offering scalable, subscription-based models that make security and innovation affordable. 

Additionally, the data-sharing principles of open banking enable a more comprehensive understanding of customer needs, which is vital for effective financial inclusion. 

In this way, open banking democratises access to finance, unlocking opportunities for economic participation and empowering communities to thrive in the digital economy.

What role will the combination of open banking and artificial intelligence play in revolutionising financial advisory services?

The convergence of open banking and AI is poised to revolutionise financial guidance. Open banking provides access to standardised, real-time data, while AI’s analytical capabilities transform this data into actionable insights. 

Together, they enable highly personalised financial recommendations that evolve with customers’ needs and goals. For instance, banks can use Natural Language Processing to analyse customer conversations in real time, offering tailored investment advice. 

Moreover, AI’s ability to create a holistic view of customers—by integrating multiple data sources—ensures that guidance aligns with broader financial contexts. 

This marks a shift from generic product offerings to bespoke solutions that adapt dynamically. As open banking expands, its synergy with AI will redefine customer engagement, enhancing trust, loyalty, and financial outcomes.

In an era of open banking, what future awaits traditional banking institutions - are they destined to become background utilities?

Not necessarily. While open banking challenges traditional banks to adapt, it also presents an opportunity to innovate and remain relevant. 

Traditional banks are no longer merely transaction facilitators; many are evolving into platforms, integrating open banking principles and leveraging data to offer personalised, value-driven services. 

They are investing in talent from diverse sectors like technology and e-commerce to reimagine customer engagement.

Moreover, traditional banks have a unique opportunity to enhance trust by embedding ESG principles—funding renewable energy projects or sustainable initiatives through open banking frameworks. 

By balancing innovation with their heritage of reliability and trust, traditional banks can transcend the utility model. 

Instead of being relegated to the background, they can play a leading role in shaping a customer-centric, inclusive financial ecosystem.

How do you see open banking transforming our understanding and experience of financial trust and digital identity?

Open banking will reshape financial trust by making security and transparency paramount. Consumers will increasingly demand accountability from financial institutions as they share sensitive data across platforms. 

Establishing robust data protection standards and fostering regulatory parity will be crucial in building this trust. 

Moreover, open banking’s ability to offer meaningful, personalised interactions will deepen emotional connections between banks and their customers. 

Financial identity, too, will evolve. With standardised data, identity verification will become seamless, enabling secure, frictionless experiences across providers. 

This dynamic creates a virtuous cycle: as trust in open banking grows, so does its adoption, further transforming how we engage with financial services. Open banking will thus redefine trust and identity as cornerstones of the modern financial ecosystem.

What potential does open banking's standardised financial data hold for enhancing and modernising monetary policy tools?

Standardised financial data from open banking has the potential to revolutionise monetary policy. 

By providing granular, real-time insights into consumer behaviour, spending patterns and financial health, it offers policymakers an unprecedented view of the economy. 

This visibility enables more precise interventions, from targeted stimulus measures to real-time adjustments in interest rates. 

Additionally, when combined with AI, this data could drive predictive analytics, equipping central banks with tools to anticipate economic shifts more effectively. 

Open banking also fosters a level playing field, enabling diverse entities to contribute to aggregate data insights. 

The result? Monetary policy that is not only more adaptive but also better aligned with the financial realities of individuals and businesses. 

Open banking, therefore, holds the potential to transform how economies are managed in the future.

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