Open Finance in a Changing World: Insights from the Fireside Chat with Ivan Mortimer Schutts & Rahul Matthan

Introduction
At Samvad 2024, the spotlight turned to a much-anticipated fireside chat exploring Evolving Policy and Regulation in an Interconnected Open Finance World. Expert perspectives from Mr. Ivan Mortimer Schutts, consultant at the International Finance Corporation (IFC), and Mr. Rahul Matthan, partner at Trilegal and technology policy authority, illuminated how the global regulatory landscape is intersecting with India’s bold move toward open finance. Moderated by Rahul himself, the session took a deep dive into how India’s digital success might inspire—and challenge—financial ecosystems worldwide.

1. Setting the Context: A Global Tension Rahul kicked off the conversation with a sobering look at recent world events. Rising nationalist sentiments and political shifts across multiple continents have compelled many countries to look inward. Against this backdrop of border tightening and data localization debates, India stands out with its more open approach to data flows, especially evident in its new Digital Personal Data Protection (DPDP) Act, which consciously avoids hard data-localization mandates.

Meanwhile, India’s G20 Presidency showcased the idea that digital public infrastructure can be a force for inclusive global development. Combining India’s large-scale digital innovations (e.g., UPI, Aadhaar, Account Aggregators) with a globally-minded policy stance may offer a blueprint for other nations.

2. The Super Cycle & Digital Public Infrastructure Both speakers emphasized that the world is entering what Mr. Mortimer Schutts described as a “super cycle” —a transformative era where data and digital networks are reshaping economics, politics, and consumer experiences.

1. Cross-Border Data Sharing
   • Pros: Accelerates innovation, reduces friction in international trade, fosters collaboration on emerging tech and governance.
   • Cons: Raises legitimate concerns around consumer protection, security, and the potential for fraud or misuse at scale.
2. India’s Role
   • With its massive population and a thriving fintech ecosystem, India’s success or failure in open finance inevitably carries global ramifications.
   • The Account Aggregator framework and other digital public infrastructures spotlight the potential of regulated data-sharing built with consumer consent at the core.

3. Navigating Regulation & Technology Together Rahul highlighted how traditional, paper-based regulations often lag behind the velocity of digital innovation. The panelists agreed that embedding regulatory principles within the code or infrastructure itself—rather than relying on cumbersome manual oversight—could be the most robust way to ensure consumer safety and trust.

Key Takeaways

• Built-In Governance: When compliance and consumer protection are coded directly into digital systems, it reduces human error and speeds up detection of irregularities.
• Shared Standards: Much like global shipping containers and Swift payment messaging standards, open finance requires interoperable frameworks to handle identity, consent, and data exchange across borders.

4. Toward a Global “Finternet” Ivan referenced the evolving concept of “Finternet”—a proposed digital grammar or standardized language for global open finance. Developed by leaders like Nandan Nilekani and Augustin Carstens, Finternet aims to:

1. Define Common Data Models: So that organizations in different countries or sectors can “speak” the same data language.
2. Support Cross-Sector Interoperability: Enabling everything from healthcare records to green manufacturing data to be interconnected securely.
3. Harmonize Governance: Ensuring consistent consumer rights, privacy protections, and secure data flows worldwide.

According to Ivan, adopting such a standard would not only bolster consumer trust but also level the playing field for emerging markets eager to participate in the digital economy.

5. What Lies Ahead As the conversation drew to a close, three central themes emerged:

1. Global Opportunity: India’s open finance ecosystem is an inspirational template, but achieving global scale requires balancing efficiency gains with heightened regulatory vigilance.
2. Risk & Responsibility: Each step toward frictionless data exchange magnifies potential misuse by bad actors—necessitating robust governance and security frameworks.
3. International Collaboration: True open finance expansion won’t just rely on cutting-edge technology. It hinges on multi-jurisdictional standards, cooperative alliances, and the political will to remain open amid rising protectionism.

Conclusion
Ivan and Rahul encapsulated the promise and perils of an open finance future. India’s approach—focusing on collaborative infrastructure, consumer consent, and a governance model “baked” into code—offers a compelling direction for global policy. Yet, as both experts noted, the success of open finance will depend on how effectively various stakeholders cooperate across borders to build regulatory frameworks that are both future-proof and consumer-centric.

The session ended with a warm note of gratitude from the organizers. Even as time constraints brought the discussion to a close, the conversation left attendees energized about India’s role on the world stage—and the collaborative spirit needed to sustain open finance as a global public good.

To watch the full session, click here