What is an Account Aggregator?
In 2021, the Reserve Bank of India (RBI) introduced the Account Aggregator (AA) Framework to make financial data more easily accessible through data intermediaries (account aggregators). AA oversees collecting users’ financial information from various entities (Financial Information Providers or FIPs) that holds customer data and shares it with entities requesting data (Financial Information Users or FIUs) with the user’s consent.
For example, a small business owner applying for a loan can authorize an FIU to access financial data from their bank accounts (FIPs) via AA.
This enables the FIU to assess the business's financial health efficiently, facilitating quicker, paper-less loan approvals.
Why do we need an Account Aggregator?
AA can make financial services like loans and credit facilities much more seamless and accessible for everyone using the digital infrastructure. AA makes it effortless to gather data at the user’s end and enter data at the service provider’s end. The information for each synced account is up-to-date, reducing margin for errors.
With entire financial profile at one place service providers gauge user's needs in a better way thus allowing for faster processing, and quicker access to products or services. Moreover, it's an ecosystem that lets the user be in control of their data at all points of time.
What is a TSP?
Technology Service Providers (TSP) collaborate with FIUs and FIPs to deliver AA products and services. They develop the foundation modules that connect FIP and FIU modules to the Account Aggregators in the ecosystem.
TSPs help the AA ecosystem participants with the latest tech & tools.
Finduit for FIUs, helps organizations seamlessly and safely integrate into the AA ecosystem. As a proprietary data governance and data fetch platform, Finduit is designed to tackle the integration challenges thus enabling you to focus on your core business.