New Delhi, Sept10: The Government of India recently unveiled the Account Aggregator (AA) network, a financial data-sharing system that has the potential to revolutionise investing and credit by providing millions of consumers with greater access and control over their financial records and expanding the potential pool of customers for lenders and fintech companies.
Account Aggregator gives the individual authority over their own financial data, which is normally siloed.
This is the first step in bringing open banking to India and enabling millions of people to securely and efficiently access and share their financial data across organisations. The Account Aggregator system in banking was launched with the participation of eight of India's biggest banks. The Account Aggregator system has the potential to make lending and wealth management far more efficient and cost-effective.
An Account Aggregator (AA) is a sort of RBI-regulated company (with an NBFC-AA licence) that assists individuals in securely and digitally accessing and sharing information from one financial institution to any other regulated financial institution in the AA network. Data cannot be shared without the individual's permission.
There will be several Account Aggregators from which to pick.
Account Aggregator substitutes the lengthy terms and conditions of ‘blank cheque' acceptance with granular, step-by-step authorization and control over each usage of your data.
The Government published a whole Press Release for this new development.