How an Account Aggregator (AA) Can Make Your Financial Life Hassle-Free

Account aggregators empower individuals by giving them control over their personal financial data, which otherwise remains in silos.


The Union Ministry of Finance last week unveiled the banking sector account aggregator (AA) network with eight of India’s largest banks. The new financial data sharing system would likely revolutionize investing and lending, giving millions of consumers better access and control over their financial records and expanding the potential customer base for lenders and fintech companies. . Account aggregators empower individuals by giving them control over their personal financial data, which otherwise remains in silos.

The account aggregator allows the individual to control their personal financial data, which would otherwise reside in silos.

What is an account aggregator?

Account Aggregator (AA) is a type of RBI regulated entity (licensed NBFC-AA) that allows a person to securely and digitally share information from a financial institution with which they have an account. with any other regulated financial institution in the AA network.

How will the new Account Aggregator network improve the financial life of an average person?

India’s financial system today involves many problems for consumers – sharing signed and scanned physical copies of bank statements, running to get notarized or stamped documents, or having to share a personal username and password to give a financial history to a third party. The account aggregator network will replace all of this with a simple, secure, mobile-based digital data access and sharing process. This will create opportunities for new types of services, such as new types of loans.

The individual’s bank only needs to be connected to the Account Aggregator network. The bank account aggregation system has been launched with the eight largest banks in India, four are already sharing data on a consent basis (Axis, ICICI, HDFC and IndusInd Bank) and four will be activated soon (State Bank of India , Kotak Mahindra Bank, IDFC First Bank and Federal Bank).

How is Account Aggregator different from Aadhaar eKYC data sharing, credit bureaus data sharing and platforms like CKYC?

Aadhaar eKYC and CKYC allow sharing of four “identity” data fields only for KYC purposes (like name, address, gender, etc.). Likewise, the credit bureau data only shows loan history and credit score. The Account Aggregator network allows transaction data or bank details to be shared from savings / deposit / current accounts.

What types of data can be shared?

Today, bank transaction data is available for sharing (for example, bank details of a checking account or savings account) between banks that have been brought online to the network.

Gradually, the AA framework will make all financial data available for sharing, including tax data, pension data, securities data (mutual funds and brokerage houses) and insurance data to available to consumers. It will also extend beyond the financial sector to make healthcare and telecommunications data accessible to the individual through AA.

Can AA display or “aggregate” personal data? Is data sharing secure?

Account aggregators cannot see the data; they simply transfer it from one financial institution to another based on an individual’s direction and consent. Unlike the name, account aggregators cannot “aggregate” someone’s data. AA is not like a tech company that collects someone’s data and builds a detailed profile of someone.

Data shared by AA is encrypted by the sender and can only be decrypted by the recipient. End-to-end encryption and the use of technologies such as “digital signing” make the process much safer than sharing paper documents.

Can a consumer decide they don’t want to share data?

Yes. It is completely voluntary for consumers to register with AA. If the bank the subscriber uses has joined the network, a person can choose to register with an AA, choose the accounts they want to link, and share their data on one of their accounts for specific purposes with a new lender or new financial institution. at the “consent” stage via one of the account aggregators. A subscriber can refuse consent to the sharing request at any time. If a consumer has agreed to share data on a recurring basis over a period of time (eg during the term of the loan), it can also be revoked by the consumer at any later time.

How can a customer register with an AA?

Customers can register with AA through its app or website. AA will provide an identifier (such as a username) that can be used during the consent process.

Today, four apps are available for download (Finvu, OneMoney, CAMS Finserv and NADL) with operational licenses to be AA. Three others have received RBI approval in principle (PhonePe, Yodlee and Perfios) and may soon launch apps.

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