Account Aggregation: Consent Driven Consolidation And Sharing Of All Financial Information Through One Application

Account Aggregation: Consent Driven Consolidation And Sharing Of All Financial Information Through One Application

SUMMARY

Earlier this month, India unveiled the Account Aggregator (AA) network with eight of India’s largest banks participating in the network marking the first step towards bringing open banking in India

The service of AA is available for both individuals and enterprises and any financial institution registered with RBI, SEBI, IRDA and PFRDA can be FIP or FIU

The ensuing status of this ecosystem will depend on several factors like participation of all the stakeholders, the security of the financial data, working of the consent architecture of the customers, different aspects of technology at the end of the Account Aggregators, etc

In today’s time, we all deal with a number of financial service providers each one of them providing one or more services which makes it certainly inconvenient for the users to keep track of their finances since all the information cannot be provided at the same place and there is no framework for consolidation of all such financial information. With an aim to resolve this inconvenience, in 2016, the Reserve Bank of India had proposed setting up a framework for account aggregators. These Account Aggregators are expected to fill this gap by collecting data from, Financial Information Providers (FIP) that hold your personal financial data like banks and providing the information of customers’ financial assets in a consolidated, organized and retrievable manner to the customer or any other Financial Information Users (FIU) like lending agencies etc. Earlier this month, India unveiled the Account Aggregator (AA) network with eight of India’s largest banks participating in the network marking the first step towards bringing open banking in India.

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