The Account Aggregator (AA) network is an RBI-regulated entity that lets individuals securely and digitally access and share information between financial institutions. The data can only be shared with the user’s consent.
Account Aggregators act as intermediaries between financial information providers (banks, mutual funds, insurance companies) and financial information users (individuals, businesses, fintech companies). AA aims to promote financial inclusion, empower individuals and small businesses to control their financial data better, and facilitate the development of innovative financial products and services.
How to use an Account Aggregator?
Account Aggregator allows users to share their financial data from a financial institution they have an account with or any other regulated financial institution in the AA network through authorised apps.
To access AA, these are the following steps:
- Users can register with an AA through the app or website to receive a handle (like a username) for consent processes.
- Once registered with an AA, customers can access their financial data from any bank on the network after they give consent.
This initiative aims to enhance financial data accessibility. It will empower users to have better control over their financial information while ensuring security and privacy through authorised channels.
Benefits of using Account Aggregator
Account aggregators offer several benefits to both individuals and businesses:
- Streamlined financial management: Account Aggregators allow users to view all their financial information in one place. It provides a comprehensive overview of their financial situation, including banking, investments, insurance, and more.
- Improved financial planning: With access to consolidated financial data, individuals can better understand their spending habits, investment performance, and overall financial health. This enables more informed financial planning and goal setting.
- Enhanced privacy and security: Account Aggregators employ robust security measures to protect users’ financial data. By accessing information through authorised channels, users can mitigate the risk of data breaches associated with sharing login credentials with third-party apps or services.
- Efficient loan processing: Account Aggregators facilitate seamless financial data sharing with lenders during loan applications. This streamlines the process, reduces paperwork, and accelerates loan approvals, benefiting borrowers and financial institutions.
- Personalised financial services: By analysing aggregated financial data, financial institutions and service providers can offer personalised financial products that meet users’ needs and preferences.
- Encourages financial inclusion: Account Aggregators can help individuals with limited access to various financial services by providing a more comprehensive view of their financial situation. This can facilitate access to credit, insurance, and other financial products.
- Empowers decision-making: With real-time access to financial data, individuals and businesses can make more informed decisions about investments, spending, savings, and debt management, leading to better long-term financial outcomes.
- Facilitates open banking: Account aggregators play a crucial role in the development of open banking ecosystems by enabling secure data sharing among financial institutions and authorised third-party service providers. This fosters innovation and competition within the financial industry, ultimately benefiting consumers.
Account Aggregators offer a range of benefits that contribute to greater financial transparency, efficiency, and empowerment for users and businesses alike.
Regulatory framework for Account Aggregator
Below are some regulatory aspects associated with account aggregator systems:
- Data privacy and security: Account Aggregators need to comply with data privacy regulations to ensure that the user’s financial data is collected, stored, and shared securely.
- User consent and authorisation: Regulatory frameworks require explicit consent from users before their financial data can be accessed and shared. The user is informed of this consent, which is revocable at any time.
- Risk management and compliance: Account Aggregators may be required to implement risk management practices to mitigate the risk of data breaches, fraud, or unauthorised access. Compliance frameworks may include regular audits, reporting requirements, and penalties for non-compliance.
- Consumer protection: Regulatory frameworks aim to protect consumers from abusive practices by Account Aggregators and misuse of their financial data. This may include requirements for transparent disclosures, dispute resolution mechanisms, and liability frameworks in case of data breaches or unauthorised transactions.
- Licensing and registration: Regulators may require account aggregators to obtain licenses or registrations to operate legally. These licenses may be subject to specific criteria, such as financial stability, technical competence, and compliance with regulatory requirements.
Steps to revoke account aggregator consent
- Login: Use your registered mobile number to log in to the Account Aggregator website or app (e.g., Onemoney, Anumati, NADL, or Finvu).
- Check active consents: View the details of your active consent bank.
- Review details: Confirm the consent and its associated details.
- Revoke consent: Select the consent you wish to revoke and click on "Revoke."
- Revoke confirmation: Confirm your action by clicking "Revoke Consent" to proceed.
- Confirmation notification: Receive a notification or SMS once the consent has been successfully revoked.
Need help?
- For any AA consent-related issues, please visit [AA website].
- For additional support, contact our customer care team.
Overall, regulatory aspects of the Account Aggregator network aim to balance the benefits of financial data sharing with the need to protect user privacy, security, and consumer rights.
In the future, Account Aggregators will revolutionise financial management by seamlessly consolidating data from multiple accounts and institutions. They’ll offer advanced security, AI-driven insights, and personalised financial advice, empowering users to make informed decisions and optimise their finances effortlessly.
