The Reserve Bank of India (RBI) has successfully closed the gap between the demand and supply of retail lending in India by introducing the Account Aggregation framework. A sizable number of borrowers with little or no credit history can now obtain credit. A new class of non-banking financing organisations that can function as a bank account aggregator app was authorised by the RBI in 2016. The framework has been improved throughout time with a better description and comprehension of AAs, resulting in a public introduction in September 2021. The RBI has recognized and regulated bank account aggregator apps, which assist clients in safely and digitally accessing their financial data from their banks and sharing it, if they like, with other participating financial institutions. Because the AA can’t “see” the data for themselves, customers may feel secure knowing that only they have authority over it.
Parties involved in the account aggregation ecosphere
The different parties that make up the account aggregation ecosphere are:
- Customer: The customer, often known as the data principle, holds a bank, AMC, insurance, etc.
- FIP: The FIP, or a financial information provider, is an organization with whom the client has a financial account. The FIPs are those.
- FIU: An FIU or a financial intelligence unit may be a regulated institution that is governed by the PFRDA, the Securities Exchange Board of India (SEBI), the Reserve Bank of India (RBI), the Insurance Regulatory and the Reserve Bank of India (RIB), and Development Authority of India (IRDAI). When appropriate, FIUs take part in FIPs bank account aggregator apps, which are authorised organisations that assist Data Principals in securely accessing the data held by FIPs and sharing that data with FIUs of their choosing. In essence, AAs manage consent.
How to make use of the account aggregator app?
Register
Set a 4-digit secret PIN and enter the phone number you have registered with your bank. The bank account aggregator app will send an OTP right away to confirm the mobile number. Your account will be activated as your handle after verification.
Discover and add bank accounts
All of the banking accounts connected to your mobile number will be identified. To link accounts to your bank account aggregator app, just choose the accounts you want. You can manually add additional accounts from the partner financial institutions if you desire. There is no limit to how many accounts you can add.
Manage consent
When you submit an online loan application, the lender will ask you to disclose your financial information over a number of different channels, and you need to accept doing this.
What makes Anumati unique?
This service provider is currently in the lead despite the RBI having only granted six AAs so far because of three significant advantages.
It is a division of Perfios Software, a market leader in data extraction, aggregation, and analysis for over 250 financial institutions. It is fluent in the language of the FIU. We are aware of what is necessary to provide FIUs and clients with a frictionless and secure experience while gaining access to and sharing sensitive data.
It is the largest single network of FIPs and represents more than 40% of all retail and SME accounts, with 15 FIPs now in operation and more on the way. This number will increase dramatically once we are able to engage directly with the PSU Banks who are eager to join the network!
Strategic investors include HDFC Bank, Bajaj Finserv, ICICI Bank, and SBI. These organisations, which form the backbone of India’s financial system, are devoted to seeing bank account aggregator apps develop into the country’s biggest and most reliable data network.
How might the new account aggregator network improve the financial status of the average person?
Consumers in India currently have to deal with a number of inconvenient aspects of the financial system, including exchanging physically signed and scanned copies of bank statements, rushing to notarize or stamp documents, and being required to give your specific username and password in order for a third party to see your financial history. They would all be replaced by the straightforward, mobile-based, open, and secure digital data access & sharing approach used by the bank account aggregator app RBI network. This will pave the way for new services, including different kinds of loans.
What additional services are available to customers whose banks have joined the AA network for data sharing?
Access to loans and access to money management are the two main services that will be improved for an individual. Today, a borrower must provide the lender with a lot of documents in order to be accepted for a small company loan or a personal loan. Due to the laborious nature of the existing process, getting a loan and using one takes longer. Today’s data is dispersed across numerous sites and is difficult to assemble for analysis, making money management problematic. Bank account aggregator app RBI streamlines the loan application process, giving businesses access to safe, tamper-proof data rapidly and affordably and helping clients get loans.
Where doesn’t it function?
Anumati collaborates with the majority of the major banks and financial institutions, as was already mentioned. Bank account aggregator apps nevertheless regularly engage with other organisations in order to welcome them as partners. The State Bank of India is one such business. SBI and we are in talks, so perhaps we will be able to welcome them to our network shortly. In the future, we also plan to include securities businesses. This is being worked on at the moment and will be activated as soon as practical.