The Account Aggregator (AA) is a revolutionary entity regulated by the RBI, designed to empower individuals to digitally access and share their financial data across various institutions within the network, all with explicit consent.
This innovative network significantly simplifies the process of sharing financial data, effectively replacing the cumbersome traditional methods. By doing so, it eases the application processes for loans and enhances access to various financial services.
In contrast to systems such as Aadhaar eKYC or CKYC, which primarily share limited identity data, or credit bureaus that focus on credit history, AAs facilitate the sharing of transaction data. This offers a more comprehensive view of an individual's financial profile.
Initially, the sharing of banking transaction data is permitted, with future plans to expand this to include tax details, pension information, securities, insurance data, and eventually healthcare and telecom-related information.
Account Aggregators serve as secure conduits for data sharing. They do not have access to, nor do they aggregate the data themselves, thereby ensuring end-to-end encryption and safeguarding consumer information.
Participation in the AA network is entirely voluntary. Consumers retain complete control over their data, deciding if and with whom they wish to share their information.
The consent process clearly specifies the duration for which the shared data can be accessed by the recipient institution, adding an extra layer of control for consumers.
Consumers can easily register with an AA through dedicated apps or websites, utilizing a unique handle during the consent process to facilitate secure transactions.
To access data from any bank within the network, a consumer needs to register with only one AA, simplifying the process considerably.
The costs associated with AA services vary by provider; some may offer free services funded by financial institutions, while others might impose a consumer fee.
The AA network enhances the efficiency of loan applications and money management by providing quick, secure access to essential financial data, thus streamlining various financial processes for consumers.
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