Account Aggregator
A Secure, Consent-Based Data Sharing System
What is an
Account Aggregator?
An Account Aggregator (AA) is an RBI-regulated entity that facilitates the secure sharing of financial data between Financial Information Providers (FIPs) and Financial Information Users (FIUs). The AA network empowers businesses and individuals to seamlessly access and manage their financial data, enhancing transparency and decision-making. Importantly, data cannot be shared without the explicit consent of the individual, ensuring complete control over personal financial information.
Financial Information Providers (FIPs)
FIPs are entities like banks, insurance companies, or mutual fund companies that hold financial information about customers. Through the AA network, FIPs securely provide financial data when requested by the customer and authorized by the FIU.
Financial Information Users (FIUs)
FIUs are entities that use financial data to provide services such as lending, wealth management, or financial advisory. FIUs receive the data only after customer consent via an AA, ensuring privacy and transparency in data exchange.
Technology Service Providers (TSPs)
TSPs offer technical solutions to FIPs, FIUs, and AAs to integrate the AA framework into their systems. These solutions ensure data is securely transferred while maintaining compliance with data privacy regulations.
Account Aggregator Model
The Account Aggregator model is built on the principles of customer consent, data security, and regulatory compliance. It enables the transfer of encrypted financial data between institutions, with the customer at the center of every transaction. The Account Aggregator framework benefits everyone involved:
For Lenders (FIUs):
- Faster Credit Decisions: Lenders can access accurate, up-to-date financial data from multiple sources through customer consent, leading to quicker loan approvals and disbursements.
- Improved Risk Assessment: With real-time financial information, lenders can better evaluate creditworthiness, reducing the risk of defaults.
- Enhanced Customer Trust: Since all data sharing is consent-based, it fosters greater trust between lenders and customers, strengthening long-term relationships.
For Individuals and Businesses (Data Owners):
- Control Over Data: Individuals and businesses can choose when, where, and with whom their financial data is shared, providing them with greater control over their personal information.
- Access to Tailored Financial Services: With seamless data sharing, businesses, particularly MSMEs, can access financing solutions that are better suited to their financial profile, improving the chances of getting credit.
- Simplified Process: Instead of manually submitting financial documents, customers can share their financial data electronically through the AA network, simplifying the application process for loans or other financial services.
For Financial Information Providers (FIPs):
- Secure Data Sharing: The AA framework ensures that FIPs can share customer data securely with FIUs after obtaining consent, promoting data security and regulatory compliance.
- Reduced Operational Burden: The automated and consent-driven data-sharing process reduces the need for manual intervention, streamlining operations for FIPs.
For Technology Service Providers (TSPs):
- Opportunities for Innovation: TSPs play a crucial role in integrating the AA model into the financial ecosystem, opening doors for innovative solutions that enhance data security and operational efficiency.
- Partnership Growth: As more institutions adopt the AA framework, TSPs have the opportunity to expand their partnerships across the financial services industry.
121 Finance on Account Aggregator
At 121 Finance, we operate as a Financial Information User (FIU) within the Account Aggregator ecosystem. By leveraging the AA framework, we ensure a smooth and secure flow of financial data for our customers, helping businesses, especially MSMEs, access trade credit and financing solutions more efficiently.
Our role as an FIU allows us to:
- Streamline Decisions: By accessing real-time, accurate financial data through the AA, we offer faster credit approvals for businesses.
- Enhance Financial Inclusion: MSMEs can share their financial history securely, helping us assess their creditworthiness and provide tailored financing solutions.
- Promote Transparency and Trust: With customer consent, we ensure a transparent data-sharing process, fostering trust between 121 Finance and our customers.
Share this article: