Eight major bank account aggregators (AA) of the country have joined the network. Through this network, they can share bank data of customers and can also use account aggregator system to acquire new customers. If you are a customer of SBI, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IndusInd, Federal Bank and IDFC First Bank If so, to take advantage of the schemes and discounts, benefits launched by these banks, consent will have to be given in the account aggregator system. With this, banks will be able to share your credit information and other information. Let us know how this system works.
AA acts as an information exchange
The account aggregator system is licensed by RBI and acts as an intermediary or exchange platform for data sharing between banks and other entities and access to the data contained in the system. The job of this platform is to collect all the financial data in one place. It acts like an information custodian for the customer. For example, only a bank, insurance company or mutual fund sharing the data with the account aggregator (AA) will be allowed to use the data of this system. If data from the account aggregator system is to be used, then your bank or financial institution will also have to be a part of it.
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No KYC or paperwork required
Data sharing becomes easy once the bank or financial institution is registered with it. Through the API, this work runs very smoothly. If you want to take a new loan or insurance policy or invest in mutual funds, then you will not need to provide any KYC document. You just have to give your consent to AA and your data will be shared with bank and financial institution. AA will collect your data from your bank and share it with the bank or financial institution where you applied for loan or any other financial product.
This system is completely safe
Privacy concerns abound regarding data sharing through the AA system, but it completely follows the privacy guidelines. The data shared by AA will be fully encrypted by your bank. Only that bank or financial institution will be able to see the information where the customer has applied for a loan or any other financial product.
Customer will have control over data sharing
The customer will have complete control over the data that is shared. Whatever data you want to share on the AA platform, that data will be shared. You can also select the timeframe for data sharing. You can also just share loan details. If you want, you can not share the credit card details. The lending bank or financial institution can take your information from the credit bureaus.
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