Page 42 - Banking Finance January 2024

ARTICLE

Abstract: presenting it in a unified view. This aggregated data can
include bank accounts, credit cards, investments, loans, and
Account Aggregator Service, a regulated entity under
other financial assets and liabilities. Account aggregation
the jurisdiction of the Reserve Bank of India (RBI), is
services are typically offered by financial technology
revolutionizing the borrowing habits of the Indian
(FinTech) companies and apps.
consumer. This innovation has the potential to
transform the landscape of investing and credit, Account Aggregator Services (AA Services) in India are a part
empowering millions of consumers with increased access of the country's push towards a digital economy and
and control over their financial data. It also opens up financial inclusion. These services enable individuals and
new opportunities for lenders and fintech companies by businesses to access and share their financial data seamlessly
broadening the prospective customer base and and securely across various financial institutions. Account
enhancing the efficiency of financial transactions. The Aggregators act as intermediaries that facilitate the
article gives an overview of the AA Ecosystem in India. exchange of financial information between financial
institutions with the user's consent. In India, these institutes
Account Aggregators: Introduction and are RBI-regulated entities (Holding NBFC AA licenses). RBI,
IRDA, SEBI, and PFRDA came together to create the
History ecosystem for the AAs.
The word Aggregator means 'a website or program that
collects related items of content and displays them or links In a nutshell, Account Aggregators are:
to them'. In the banking context, the process of Account An interoperable data blind consent manager that
aggregation refers to gathering financial information from cannot read or resell customer data.
multiple accounts across various financial institutions and
Empower consumers to selectively share and even
revoke data once shared.
About the author
Are RBI-regulated entities and have a fiduciary duty to
Gautam Bose consumers, sharing digitally signed and encrypted data.
Manager (Research)
State Bank Academy, Account Aggregators (AAs) are a relatively new concept in
Gurugram the Indian financial sector aimed at revolutionizing how

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