An account aggregator is a type of financial system that has revolutionized investing and credit. It is an RBI-regulated entity which helps individuals securely access and share their financial information digitally.
More than 34 Million accounts have been created in the country’s account aggregator ecosystem, including public and private bank accounts. The account aggregator ecosystem allows individuals to protect and control their financial data. The revolutionary concept will not only help the customers but also businesses and financial institutions.
How Does the Account Aggregator Ecosystem Work?
In the account aggregator ecosystem, the FIPs (Financial Information Providers) work as the source of all the data as they store all the customer’s financial information. After that, the data is shared with FIUs (Financial Information Users), such as financial institutions like lending banks and NBFCs.
Some of the most essential sections of the account aggregator ecosystem are:
- Technology Service Provider (TSP)
TSPs are an integral part of the account aggregator ecosystem. Technology Service Providers collaborate with FIUs and FIPs to develop modules that connect these two. By establishing this connection TSPs deliver several account aggregator services and products.
Other than strengthening the AA framework, TSPs provide assistance to fintech companies by developing underwriting models, maintaining SME Scorecards and creating product designs of apps.
- Financial Information Provider (FIP)
Financial Information Providers ensure the safety of sensitive user data. They protect the financial information of banks, NBFCs, mutual fund depositories, insurance and pension fund repositories, asset management companies, and more. FIP provides valuable data to financial intelligence units, ensuring the safety and security of the financial systems of the country.
- Financial Information User (FIU)
The main responsibility of FIU is to provide different services to the end consumer by consuming data from an FIP. For example, if a lending bank wants to determine whether a borrower qualifies for a loan, they can access the borrower's data through the FIU. In this scenario, the lending bank serves as the FIU. It is essential to choose an FIU that understands your needs and enables you to access and share your financial information responsibly.
Account Aggregator Service at Mobile App?
In the account aggregator ecosystem, many mobile apps offer consent-based data-sharing services in India. Many account aggregator apps in India provide similar services. Protean SurakshAA is considered one of the best account aggregator mobile apps.
Protean SurakshAA is an account aggregator platform that enables secure and seamless access to your financial data. It operates under the Account Aggregator framework approved by RBI. The main goal of the application is to empower Indians to have control over their sensitive financial data.
The app is available on the Web, iOS, and Android and allows users to provide their explicit consent for sharing data with various financial institutions like banks and NBFCs. They do not share your personal financial data without your definite permission.
What Are the Benefits of Account Aggregator Mobile Apps?
With the account aggregator mobile apps, users can get an overview of all their financial accounts with just one click. Here are some of the most essential advantages the account aggregator mobile app offers:
- User-friendly Dashboard
With the account aggregator platform, you can now conveniently view all your bank accounts in a single location with just a simple click. Other than that, you do not have to gather banking documents when applying for loans or other financial products. It helps to make financial management more easy and convenient for the users.
- Digital Framework
With the help of the account aggregator ecosystem, users can very easily share their financial data with financial service providers and FIUs. It will help the service providers to bring the data of the customers in one place and create an extending digital framework to share it in real time.
- Sharing of Data with User’s Approval
In the account aggregator ecosystem, user privacy and data protection is the top priority. The app developers understand the importance of consent in terms of data sharing. FIUs can access the data and information only after the customer gives permission. The apps allow customers complete control over their data and provide them with the ability to access, approve and revoke all consents given.
- Easy Controls
Account aggregator ecosystem makes it easy and safe for users to share their financial data with Financial Information Users (FIUs). Consumers are always in control of their data and can see exactly who it is being shared with, why, and for how long.
Currently, only banking financial data can be shared through the account aggregator ecosystem. However, in the future, it may be possible to share other financial data, such as investment, insurance, and tax data. This allows FIUs and NBFC lenders a more complete view of a borrower's financial situation, making it easier for them to make credit decisions.
- Data Security
The AA framework is expected to lower cases of misuse of account-related data shared in physical form, and the data being shared is encrypted and decrypted only at the receiver’s end. The FIUs need to adhere to the data governance guidelines to prevent instances of data misuse.
What Are the Benefits Of Account Aggregator Mobile Apps?
Account aggregator mobile apps can be used for a variety of purposes, including
- Applying for Loans
If you want to apply for a loan from a lender bank, you need to provide all types of banking-related data in hard copies or soft copy format. After receiving the copies, the lender needs to verify all the documents and screen applications based on that. This is an ancient method that is both time-consuming and impractical.
Here are some of the ways in which the account aggregator ecosystem helps in the lending process:
- The account aggregator ecosystem allows banks and NBFCs to process loan applications faster.
- Lenders receive accurate and real-time data about the borrower that is signed by the FIP or Financial Information Provider.
- The bank aggregator ecosystem helps to reduce the risk of Non-Performing Assets significantly.
- With the help of the account aggregator ecosystem, lenders can offer their customers personalized loan products.
- Managing Personal Finances
PFMs, or Personal Finance Management apps, are also a part of the account aggregator ecosystem. A good PFM app will help you make informed choices about your personal finances such as opening a savings account, availing a home loan or personal loan, buying or selling mutual funds and insurance policies, etc. These apps not only graphically present the data but also provide actionable reports.
- Financial Data Aggregation
Account aggregators act as an intermediary or exchange platform for banks and NBFCs. They use and share financial data from the account aggregator ecosystem. For a bank or NBFC to access the information, they need to be a part of the active account aggregator ecosystem. All financial data flow through the ecosystem, and it only acts as an information custodian.
- Identity Verification
If you give access to the account aggregator ecosystem to share your data with banks and NBFCs, the application will extract your financial data digitally from the bank or NBFC server and provide the information to the FIU.
Once you register your information with the account aggregator ecosystem, you do not have to submit your paperwork or KYC each time you inquire about a new insurance, mutual fund or loan.
- New Financial Products and Services
The account aggregator ecosystem is now being used to create and enable new financial products and services, such as credit scoring and personalized investment advice. These apps will help to create an advanced financial ecosystem that is going to ease out the whole lending and other financial process.
How does Protean SurakshAA Operate?
Here is a step-by-step guide on how to operate Protean SurakshAA, an Account Aggregator app:
- Register
If you want a convenient and secure way to register for the services of Protean SurakshAA, you need to Download their mobile app or visit their website (www.proteansurakshaa.in) for hassle-free registration.
- Add Bank Accounts
With the help of the intuitive interface of the app and OTP-based authentication, linking bank accounts has become very easy.
- Approval or Rejection of Consent
You can approve or reject consent requests with just one click and verification. It will help you to always stay in control of your information.
What Are the Advantages of the Account Aggregator ecosystem?
The account aggregator ecosystem or framework is created through an inter-regulatory decision by the Reserve Bank of India, Pension Fund Regulatory and Development Authority, Securities and Exchange Board of India, Insurance Regulatory and Development Authority and Financial Stability Development Council.
The account aggregator ecosystem has been making financial services like loans and credit facilities accessible and seamless. Just as UPI changed the whole financial ecosystem of the country, the AA framework is expected to have a similar effect. Here are the most essential advantages of the account aggregator ecosystem:
- Hassle-Free Data Processing
The account aggregator ecosystem makes it very easy to gather and enter data from both the user’s and the service provider’s end.
- Fast
It helps in the processing of financial data faster, giving service providers such as banks and NBFCs quicker access to their products or services.
- Comprehensive
FIU or Financial Information Users can access the entire financial profile of an individual in one place with the help of the account aggregator ecosystem.
- Real-Time Information
The AA framework provides real-time information that is up-to-date and available online to significantly reduce the margin for errors.
- Verified
The AA framework fetches and delivers financial data directly from authorized accounts of banks and NBFCs, which eliminates chances of marginal, or in some cases, major data errors.
- Transparent
When it comes to finances, it is very important to be transparent. The AA framework ensures that all the information that is transmitted through the ecosystem is transparent for all users to see. The ecosystem has helped in increasing transparency by helping users to get a better picture of their finances.
The account aggregator ecosystem has changed how financial data is processed and fetched. The framework will ease the distribution and monitoring of credit. Not only will it affect seasoned borrowers but also new-to-credit and under-banked borrowers. The country is preparing to make the account aggregator ecosystem a Universal Data Interface, just like the UPI.
If you want to install an account aggregator app to manage your personal financial data, you should install Protean SurakshAA. It is one of the safest account aggregator applications in the market.
- Story by Kakoli Laha
Frequently Asked Questions
1. Which is the first public sector bank to enter the account aggregator ecosystem?
Union Bank of India was the first public sector bank to enter the account aggregator ecosystem on 29 April 2022.
2. How to create an account on Protean SurakshAA?
To create an account on Protean SurakshAA, first, you need to visit their website or download their app. Then, you need to register with all the necessary credentials and add all your accounts. After that, you need to approve or reject consent regarding data sharing with other platforms.
3. Is my financial data safe with account aggregator mobile apps?
The account aggregator ecosystem does not store any data in its database. It fetches the financial data of a user from a financial institution like a bank or NBFC and delivers it to another FIU.
4. What is the most critical benefit of using an account aggregator?
Account aggregator helps in the collection, consolidation and processing of financial data. This helps businesses and individuals to access credit much more easily.
