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A universal connector for Al systems
Banking Frontiers
|August 2025
Model Context Protocol is now a key tool to connect Al systems to data bases to retrieve most relevant information:
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When Anthropic, the US AI startup that developed the Claude family of LLMs to rival OpenAI's ChatGPT and similar AI tools, open-sourced its Model Context Protocol, or MCP, the standard that it created for connecting AI tools to the data repositories on 25 November 2024, it declared that the aim was to provide a universal, open standard for connecting AI systems with data sources. This, the company believed, will replace 'fragmented integrations with a single protocol'. In fact, it wanted a simpler, more reliable way to give AI systems access to the data they need. Ever since, MCP is extensively used by AI and software development teams to have a meaningful link between data sources and AI models.
As Anthropic has said in the documentation of MCP that it is 'the USB-C for Al', it effectively sets up communication between AI systems and data sources as against the hitherto adopted practice of creating customized connectors for each individual data source. That system called for time and effort while creating a single AI product. MCP virtually connects an enterprise's internal database, its various functional systems like CRM, email etc thereby tremendously helping the development teams in their efforts. It also facilitates interoperability, integration of diverse systems and brings in a high level of standardization.
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