Account Aggregator Platform Gains Traction, 94 Financial Institutions Registered As FIUs

As many as 94 financial institutions have onboarded the account aggregator platform as financial information users (FIUs), the government has informed the Parliament.

Of the 94 financial institutions that have onboarded the account aggregator platform as FIUs to date, 73 are regulated by the Reserve Bank of India (RBI), while the Securities and Exchange Board of India (SEBI) regulates 10 of them, Minister of State for Finance Dr Bhagwat Kisanrao Karad said in a written reply in the Lok Sabha. 

While nine FIUs are regulated by the Insurance Regulatory and Development Authority of India (IRDAI), the Pension Fund Regulatory and Development Authority (PFRDA) regulates the remaining two.

The account aggregator network is a financial data-sharing system that can facilitate investing and credit, giving consumers access and control over their financial records and expanding the potential pool of customers for financial sector entities and fintech companies. 

An account aggregator takes data from one financial institution to another based on an individual’s direction and consent. However, registering with an account aggregator is fully voluntary for consumers.

Account Aggregators And FIPs

The minister also said that the RBI has granted a ‘Certificate of Registration’ to six companies as account aggregators to date.

Finsec AA Solutions, Cams Financial Information Services, Cookiejar Technologies, National E-Governance Services (NESL) Asset Data, Perfios Account Aggregation Services, and Yodlee Finsoft are the account aggregators.

In another reply, Karad said that 26 financial institutions have onboarded the account aggregator platform as financial information providers (FIPs). Of these, 12 are public sector banks, while 10 are from the private sector. While one of them is a small finance bank, three are life insurance companies.

It may be noted that the RBI last month included the Goods and Service Tax Network (GSTN) as a FIP under the framework of an account aggregator. The move by the central bank is expected to improve credit flow to the cash-starved micro, small and medium enterprise (MSME) sector and create new opportunities for the fintech startups in the country.

The account aggregator platform is an important part of the government’s India Stack. The government aims to usher in the next level of digitisation and improve credit flow into the economy with India Stack. The Open Network For Digital Commerce (ONDC) and the Unified Payments Interface (UPI) are the other important constituents of the India Stack.

Recently, former UIDAI chairman and Infosys cofounder Nandan Nilekani said that the account aggregator framework and ONDC will power significant economic activity in India over the next decade.