Account Aggregators (AAs) are transforming the way financial information is shared in India's banking sector. These digital intermediaries are strictly regulated by the Reserve Bank of India. They facilitate the secure and efficient transfer of financial data between two types of institutions. Those holding the information are called Financial Information Providers or FIPs. Similarly, those requiring it are called Financial Information Users or FIUs. AAs digitalise the process of document submission. They significantly reduce the time and effort involved in applying for financial services such as loans. Users can easily register, link accounts, review consent terms, and track their data sharing activities through a user-friendly interface.
The AA framework is built on a foundation of robust security measures. These include end-to-end encryption and data blindness. Such steps ensure the privacy and integrity of users' financial information. A key feature of the AA system is the unprecedented level of control it gives to users over their data. Individuals can grant, review, or revoke consent for data sharing at any time. This effectively puts them in charge of their sensitive financial information. This innovative approach streamlines banking processes and promotes transparency and user empowerment in the financial sector. AAs mark a significant step towards smarter and more accessible banking services in India.
Account aggregators are RBI-regulated service providers that facilitate secure digital sharing of financial data
The ecosystem involves customers, financial information providers (FIPs), and financial information users (FIUs)
Account aggregators eliminate the need for physical document submission during financial transactions
Strict security measures like end-to-end encryption and data blindness for the aggregator protect customer data
Customers have complete control over their data, with the ability to review, grant, or revoke consent anytime
The straightforward registration and consent management processes allow users to link accounts and track data sharing activities
Account aggregators empower customers by offering a secure and convenient platform to manage their financial services