Top banking institutions in the country are mulling over the creation of a ‘national financial grid’ that allows real-time data sharing across the banking and financial sectors to help consumers avoid digital fraud.
Speaking at the CII Financing Summit in Mumbai on Tuesday, the Chairman of India’s largest private sector bank, the State Bank of India (SBI), CS Setty, said he had pitched for a grid that “connects all parts of the ecosystem to check fraud”.
“Can we create an NFG that connects all the critical elements? It will be one unified open-access infrastructure layer that can be leveraged across the ecosystem,” he said.
Setty said sector participants, including credit bureaus, fraud registries, e-KYC facilities, the unified payments interface platform, account aggregator, and the unified lending interface (ULI) had come together to form the ‘Indian Digital Payment Intelligence Corporation’ (IDPIC), which would be a not-for-profit entity that offers real-time data to financial sector participants with the final aim of customer protection.
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It will be a “shared digital infrastructure for fraud and risk management” Setty noted.
The bank chief also suggested the creation of a “digital twin” for small businesses to make it easier for them to access finance by capturing all the data pertaining to an entity.
The “digital twin” will transform micro, small and medium enterprises (MSMEs) lending from the present relationship-based model to a data-driven one, Setty added.
“Despite several efforts, there is unmet demand when it comes to accessing financial services, which forces entities to go to informal and unregulated sources of finance as well,” he said.
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