Application programming interfaces (APIs) will decentralize banking and change the way savings accounts are opened, accessed and managed, enabling digital-only banking and financial services for millennials, agricultural marketplaces, neobanks and financial platforms, according to a Cashfree Payments report Friday (July 15).
Cashfree Payments’ report, “Changing the retail banking landscape via savings account APIs,” takes a closer look at the Indian landscape of savings account APIs, the innovation it enables and how this is changing the future of retail banking in India, the company press release says.
It also presents the views of established and emerging FinTech firms in the Indian retail banking space, on various aspects of the sector, ending with a proposal for a new regulatory model for a licensed Banking as a Service (BaaS) intermediary, creating a “superfintech,” enabling white-labeled front-end business correspondents, neobanks and other FinTech models, the press release says.
Savings account functionalities, including deposits, cash withdrawals, payments, funds transfers, among others, can turn into a set of APIs, each of which then becomes BaaS products to be leveraged, allowing banks to unbundle and enable core processes, including account opening, transactions and account management through FinTechs.
“It gives us great pleasure to launch this report on the rapidly evolving landscape of retail banking,” Cashfree Payments CEO and Co-founder Akash Sinha said in the press release. “We believe that bank-FinTech partnerships will drive the next generation of banking services.
“FinTech innovation and bank-FinTech partnerships are reaching the core of banking services through neobanks today, and customers can look forward to an exciting new retail banking experience,” he said.
Related: Cashfree Payments Upgrades Its Token Vault
In June, Token Vault, the tokenization solution from Cashfree Payments, began offering interoperability in card tokenization.
Token Vault is one of the first tokenization solutions offering this feature, according to the release. Businesses that use the company’s payment gateway can integrate with Token Vault to securely tokenize cards from networks such as RuPay, Visa and Mastercard.
Cashfree Payments launched Token Vault last year ahead of new guidelines for tokenization imposed by the Reserve Bank of India (RBI). Beginning Sept. 30, “businesses and payment aggregators are required to tokenize a customer’s card while offering the saved card option,” according to the press release.
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