Might standardised financial data through open banking create new tools for monetary policy ?
Barath Narayanan Standardised financial data facilitated by open banking could address two significant issues in current markets .
Firstly , it can ease monetary policymaking by providing a clearer , more immediate view of economic dynamics .
Secondly , it enables seamless transaction management across businesses and borders . Aggregated , anonymised data can reveal patterns in consumer behaviour , liquidity flows and credit access , enabling more targeted and effective products and policy interventions . For example , during economic downturns , realtime insights could help central banks design stimulus measures tailored to specific demographics or regions .
Similarly , monitoring systemic risks becomes far more efficient with access to detailed , standardised financial data .
Realising this potential requires close collaboration between regulators , banks and fintech to ensure that privacy is safeguarded while data interoperability is optimised .
If managed effectively , open banking could become a cornerstone of smarter , more agile economic policymaking .
Carlos Kazuo Missao Open banking ’ s real-time insights into consumer financial data will give regulators a significant leg up in determining monetary policy .
Currently , most decisions are made based on spread out manual reports of consumer activity . With open banking , regulators will be able to monitor consumer finances and behaviours in real-time , allowing them to quickly and accurately determine when and where policy changes might be necessary .
We ’ re already seeing this in the US , where the Consumer Financial Protection Bureau ( CFPB ) has passed a new rule defining a technical pattern ( FDX ) that will make it easier for banks to monitor near real-time financial transactions . It will also allow banks as well as regulators to launch nearreal time protective actions or alerts .
OPEN BANKING HELPS ...
According to Barath Narayanan , Global BFSI and Europe Geo Head , Persistent Systems , Open Banking can help :
82 March 2025