Four Indian banks have gone live with the account aggregator (AA) framework with more expected to join within the next month
Conceptualised in 2014, AA framework will facilitate a consent architecture to help users share financial and transaction data with different financial entities
Much like the unified payments interface (UPI) which revolutionised digital payments, industry stakeholders believe the AA framework can help streamline lending infrastructure
The Indian government’s much-awaited account aggregator framework that was conceptualised in 2014 to facilitate smoother and safer access to financial data has gone live with four Indian banks coming on board today.“Disruptions due to the pandemic have worsened the credit gap and AA can act as an intermediary to provide accurate data for credit approval with user consent within a shorter time span. It will assist in decision making for various financial use cases while eliminating paper trails,” said Rao.
HDFC Bank, ICICI Bank, Axis Bank, Federal Bank, Kotak Bank, State Bank of India (SBI), IDFC and IndusInd Bank are in various stages of implementation of the framework.