Tech norms for Account Aggregator ecosystem out
As per experts, the system would work with AAs onboarding customers on to their service platforms somewhat similar to how payment companies acquire customers through mobile applications.
An AA ecosystem, as envisaged by the regulator, would be a platform for financial services companies to reach out to the end consumer to seek consent before using their personal data to optimise their product offerings.
The consent generation and the data flow between information providers such as banks, insurance companies, GST platforms, etc and information seekers such as fintech lenders and other financial services agencies would be mandated by entities called NBFC Account Aggregators through a network of interoperable interfaces or APIs. As of date, seven companies have received an “in-principle” licence from the regulator to operate as Account Aggregators once the operational framework gets finalised.
These entities include group companies of financial and technology conglomerates such as Aditya Birla, Jio and Perfios Software. CAMS FinServ, Cookiejar Technologies, NESL Asset Data Limited and Yodlee Finsoft are the other companies that have also been given the preliminary nod. Many within the financial services industry expect the AA framework to be a game-changer in how Indian consumers interact with their personal data and control the use of it.
“The RBI’s recent announcement on technical specifications for account aggregators signals the advent of open banking in India,” according to TR Ramachandran, group country manager India and South Asia, Visa. “It is a watershed moment for Indian fintechs and has the potential to transform how financial services are offered and consumed. With their own data at their command, consumers can now opt for financial products and solutions tailor-made to suit their needs”
As per experts, the system would work with AAs onboarding customers on to their service platforms somewhat similar to how payment companies acquire customers through mobile applications. These customers can store and access all their personal data in a single window interface and choose the companies that can get access to their information.