Account Aggregator Framework: The number of bank accounts joining the Account Aggregator (AA) framework has seen a more than eight-fold increase in the last 20 weeks. However, India’s largest lender State Bank of India (SBI) is yet to go live on it. This framework is expected to bring about a paradigm shift in the sharing of financial data in India.
80,000 linked accounts in 20 weeks
According to data released by Sahmati, a not-for-profit self-organized collective for the AA ecosystem, the number of linked bank accounts has now risen to 80,000, from 10,000 in the second week of September. The ecosystem has completed 67,000 requests so far.
Account aggregator that shares financial information
Account aggregator facilitates sharing of financial information among regulated entities on a real time basis. AA is licensed by the Reserve Bank, which enables the flow of data between Financial Information Providers (FIPs) and Financial Information Users (FIUs).
FIPs are institutions that have customer data and FIUs are entities that use the data for better services, lending, etc.
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More work done on testing in the last five months
Srikanth Rajagopalan, Chief Executive Officer, Perfios Account Aggregation Services, said, “Most of the systems have been tested in the last five months to ensure that the system is running smoothly. Click-through rates, success rates were good. Now our first task is to increase FIP and different types of accounts.”
As of now, only current and savings accounts and deposits can be linked. Large pool of Small and Medium Enterprises (SME) accounts and asset classes like securities, insurance and mutual funds need to be opened for AA. It may start in the next few months.
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Now emphasis on adding more banks
BG Mahesh, Co-Founder and CEO, Sahamati, said, “Our focus now is to go live with more banks. We also have to work on deployment, product and user experience across sectors. Insurance companies have started working on its implementation. As for mutual fund companies, we are in talks with them right now.”
However, SBI with the largest number of accounts in India is working on a pricing model as the bank seeks compensation. The reason for this is that it is the largest information provider.