Account aggregation services are paving their way to launch themselves in India.
A framework that has the capability of storing all your financial data in one place and allows you to access financial services like employing loans or investing in a few clicks and almost no hassle, shall surely be a dream come true.
And so it shall, because Banking institutions like HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., and IndusInd Bank Ltd., have joined the account aggregator framework and have started testing account aggregator services for a select set of customers before they open up this platform for everyone.
Institutions like State Bank of India, Kotak Mahindra Bank Ltd., etc shall also be joining the account aggregator framework shortly. Non-banking institutions like Bajaj Finance Ltd., Lendingkart, and DMI Finance shall also be following the lead.
Once these services become available for all, they shall make financial processes much easier for everyone.
How do these frameworks work and how they could benefit Indian consumers?
Account aggregators shall work as a technical intermediary between FIPs (Financial Information Providers) and FIUs (Financial Information Users).
In that they shall, with the customer’s consent, be able to fetch the digital documents from the banks or the FIPs and share them with other service providers or FIUs.
It implies, that customers wouldn’t need to keep fetching banking-related details to get loans or access any other financial products or services. With aggregator platforms, they can access loans smoothly while the aggregator platforms make the information-providing process an abstraction.
Since the whole process is highly consumer-centric, and all the information sharing is highly dependent on the customer’s consent, this framework shall prove to be a highly valuable asset for both consumers and institutions in the upcoming time.
What do you think about this – a possible data breach or potential time saver? Do share your thoughts