Fintech startups have started offering a broader set of banking services beyond payments and lending, pointing to a deep integration with lenders that has the potential to change the way customers access banking products. While banks are good with settlement, security and credit checks, fintech entities can help customers in ease of use. For instance, reconciliation between multiple current accounts of a business through one portal and lending at point of sale, otherwise meant for payments, are some of the ways in which ‘open banking’ is gaining ground. Creation of a common platform for inventory management, payments and real-time settlements is another use case. Open banking as a concept has taken off in developed markets already. In India, startups can collaborate with banks to bring in disruptive practices while compliance issues, settlements etc., can be managed by banks.

(Economic Times)