Page 36 - BFSI CHRONICLE 10 th Issue (2nd Annual Issue ) 23062 COPY.indd

BFSI Chronicle, 2 Annual Issue, 10 Edition July 2022
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Users (FIU) without the Account Aggregator documents from various entities (FIPs), share
getting access to the data. confidential login details or visit multiple sites
and download and gather information required
A digital consent artefact will be used to grant by financial service providers such as lenders
the consent that the FIP complies with when
servicing a financial data request. and financial planners and facilities easy flow
of information required for prudent financial
The customer will interact with only the decisions.
Account Aggregator to generate consent, and
the Account Aggregator will maintain the vault An individual’s or entity’s data is usually
where consents will be maintained on behalf fragmented and spread across silos in
of the customer. It will provide the customer a data warehouses of financial institutions,
government bodies, and other business entities.
snapshot of all consent, across all the accounts
and to all FIU that the customer has approved There are no frameworks for seamless, safe,
and will enable the customer to revoke these and swift data sharing between financial
information providers (FIPs) and financial
consent anytime.
information users (FIUs) with the permission
Benefits of the user whose data is being shared. At
Account Aggregators can become agents of the same time, there is a lack of solutions
financial inclusion by shifting from asset- and services to aggregate and integrate user
backed lending to cash-flow-based lending. data for a seamless, wide-ranging view of
This can enable them to serve individuals data in real-time. Consequently, there is still
and MSMEs, which were earlier unserved or resistance to accessing and sharing data, and a
underserved by financial services. In addition, vast amount of fragmented information is not
by empowering users to control who accesses effectively optimized to provide comprehensive
their data, type of data, and duration of access, service delivery to users. Account Aggregation
Account Aggregator solutions can bring about is a panacea for the “ illness of information
a paradigm shift in credit assessment and asymmetry & data insufficiency”.
lending and financial planning, and wealth
management. Instead of going through their Bank for
services like payments, consumers want the
Suppose a person wants to apply for a convenience of financial activities embedded
personal loan and wants financial planning into their day-to-day life, such as during online
advice. The FIU will ask the user to provide shopping.
documents such as bank statements, income
It is expected to bring a “paradigm shift”
tax returns, and salary slips. Similarly, the user
will be required to provide his bank details, from collateral-based lending to information-
based lending. If a factory owner wants a loan
investments in various assets, funds details and
insurance purchased, etc. from a Bank for expansion of business, he
can share the bank statements of the last five
The account aggregator applications will years with the lender. With this information,
source data from multiple FIPs and relayed via the lender will be able to understand the
a consent-based mechanism to FIUs. With the owner’s creditworthiness and can sanction the
account aggregation solutions, the user doesn’t loan based on the level of cash flow. This will
have to physically provide hard copies of reduce transaction cost, the turnaround time to

The Institute Of Cost Accountants Of India

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