The specifics of open banking and Aldagi's new product

Insurance company Aldagi has returned to financial organizations and startups wishing to engage in open banking with a new offer and offers professional liability insurance created specifically for them.

As the market develops, the needs and demands of consumers change, Aldagi always tries to offer customers services and products tailored to them, and this time it has offered one of the most important products to fintech companies.

About the specifics of open banking and the insurance policy created specifically for this purpose, Nikoloz Kortua, Head of Aldagi's Distribution Channel Development Sector, will talk:

• What does open banking mean and what are its advantages?

Open banking is a new approach that provides various financial services in one space, where consumers have the opportunity to easily exchange their financial information between different banks.
Through open banking, information sharing between banks and organizations has become faster, more flexible and more accessible. In fact, it is an opportunity to effectively use new technologies, which increases healthy competition.

• Who can engage in open banking?

Companies that meet the criteria set by the National Bank and obtain the appropriate license can engage in open banking. I think that fintech companies, startups and organizations providing various financial services will be willing to provide their services to customers through open banking.

• What does Aldag offer to companies wishing to engage in open banking?

Aldag offers customers an insurance policy that covers professional liability in the context of open banking activities, which involves the immediate exchange of user information between various entities through electronic technologies for the purpose of offering the customer a service to initiate a payment and/or access account information. The policy covers financial damage caused by professional errors that occur as a result of activities provided for in open banking, as established by the legal acts of the National Bank.

Aldagi’s professional liability insurance is relevant for startups and fintech companies that intend to engage in open banking, because in order to obtain a license, companies must submit a bank guarantee and/or a professional liability insurance policy.

Along with the development of the market, we always try to create insurance products that are important for business support and development.

• Why is this insurance important?

As I mentioned, in general, professional liability insurance is a product that provides for the reimbursement of financial obligations arising from errors made in the performance of professional activities. It is precisely the presentation of this insurance product that is one of the requirements for obtaining a license.

Aldagi is the only insurance company on the Georgian market that has issued this policy.