Architecting Open Finance for a Billion Users
SamvAAd 2024 witnessed the release of some landmark reports in the Open Finance space. Dr. Pramod Varma released the Global Open Finance Adoption Report 2024-2030, collaboratively developed by Open Finance Connect and Sahamati. This report delves into the dynamic evolution of Open Finance regimes worldwide and projects over one billion global users by 2030. The report highlights adoption trends across 48 countries and explores the opportunities and challenges of the rapidly evolving open finance landscape.
Dr Pramod Varma delivered a compelling keynote on how to reach this stage and architect open finance for billions globally. He emphasised that data must be treated as a national economic asset that drives inclusive growth. Dr. Varma argued that the key to this vision lies in a unified account aggregator system, which extends beyond financial inclusion to support formalisation, asset protection, and greater access for underserved populations.
Central to Dr. Varma’s message was the need for a collaborative approach among various regulatory bodies and digital initiatives to create an interconnected infrastructure for economic empowerment. He stressed that scalable use cases are essential, and the success of platforms like UPI proves that once such systems are in place, they create lasting value. Integrating services into a shared, open infrastructure allows individual ministries like labour and agriculture to contribute independently to a broader ecosystem that facilitates growth.
The address also spotlighted the importance of customer protection, particularly regarding financial fraud and privacy. Dr Varma spoke about the need for secure and transparent systems that facilitate trust, especially with the rise of international finance integration. Telecom operators are working on opening APIs to enhance security, while innovations like verifiable salary credentials—backed by signed QR codes—offer potential solutions to reduce friction in financial transactions.
The keynote address and the Global Open Finance Adoption Report reflect a shared vision of open finance as a tool for inclusivity, where collaborative efforts and technological advancements unlock financial access for billions. According to Dr. Varma, the future of open finance lies in creating a balanced framework where technology, market forces, and governance work together for the benefit of all.
Check out the full session recording here. Access the Global Open Finance Adoption Report 2024-2030 (GOFAR) here.
