Open Banking: How to Design for Financial Inclusion

Open banking regimes allow a wide range of users, including fintechs, to access the customer data locked inside banks and other financial institutions to develop innovative financial products and services that are lower cost and better suited to the needs of consumers. While many policy makers and regulators in emerging and developing markets recognize the potential benefits of open banking regimes, they are uncertain how to design them in ways that support their financial inclusion objectives. For this paper, CGAP has examined 12 regimes and identified the critical design components that are most likely to serve the needs of poor people.