Earlier this month, India unveiled the Account Aggregator (AA) network with eight of Indias largest banks participating in the network marking the first step towards bringing open banking in India
The service of AA is available for both individuals and enterprises and any financial institution registered with RBI, SEBI, IRDA and PFRDA can be FIP or FIU
The ensuing status of this ecosystem will depend on several factors like participation of all the stakeholders, the security of the financial data, working of the consent architecture of the customers, different aspects of technology at the end of the Account Aggregators, etc
In todays time, we all deal with a number of financial service providers each one of them providing one or more services which makes it certainly inconvenient for the users to keep track of their finances since all the information cannot be provided at the same place and there is no framework for consolidation of all such financial information. With an aim to resolve this inconvenience, in 2016, the Reserve Bank of India had proposed setting up a framework for account aggregators. These Account Aggregators are expected to fill this gap by collecting data from, Financial Information Providers (FIP) that hold your personal financial data like banks and providing the information of customers financial assets in a consolidated, organized and retrievable manner to the customer or any other Financial Information Users (FIU) like lending agencies etc. Earlier this month, India unveiled the Account Aggregator (AA) network with eight of Indias largest banks participating in the network marking the first step towards bringing open banking in India.
The service of AA is available for both individual and enterprises and any financial institution registered with RBI, SEBI, IRDA and PFRDA can be FIP or FIU. The network also has technical service providers (TSPs) participating in the ecosystem who collaborate with other participants to deliver vide range of fintech products and services.
Sahamati is a self-organized Account Aggregator ecosystem collective that is facilitating the ecosystem and it prescribes standards, promotes interoperability, and prevents participants from engaging in anti-competitive behavior, as well as serves as a source of information for the AA ecosystem. The AA ecosystem is designed so that each FIP and FIU is enabled to work with every AA in the ecosystem network, rather than only with those with whom they have a bilateral agreement. Once any FIP/FIU is certified and added to the Central Registry, any approved AA can connect with them. Registering with AA network is not mandatory for all participants and the network allows complete unmasked information unlike other central registries.
Financial Information means information about all kinds of financial services availed by the user including all kinds of bank/ NBFC deposits, mutual funds, stocks, insurance policies etc. However, currently, only asset-based data is available and other data types shall be added over time.
Every aspect of the AA network will be consent driven. The consent architecture includes one consent artefact to authorize the AA to obtain information from the FIP and other artefact authorizes the FIU/Customer to request aggregated information from the AA. The customers shall also be provided an option to revoke consent to obtain information that is rendered accessible by a consent artefact, including the ability to revoke consent to obtain parts of such information.
Upon receipt of the request with consent and only after the verification of the consent is done, the financial information provider shall digitally sign the financial information and transmit the same to the Account Aggregator in a secure manner in real-time. The customers will also be able to view a dashboard and a list of consents given and revoked in the application to track the information shared with financial institutions.
The data being transmitted through the AA is encrypted by the sender and can be decrypted only by the recipient and AA cannot see the data, they merely take it from one financial institution to another based on an individuals direction and consent. Also, AAs are not allowed to store, process and sell the customers data. This is designed to ensure AAs do not have a conflict of interest when designing processes to obtain consent for access to user data. AAs arenotexpected to aggregate customers data and create detailed profiles however, an AA application, not the AA itself, will have access to the balances of your accounts. The decrypting of this happens on the device of the end customer and very basic analytics may be done on the users app/ device.
Further, in order to ensure greater security and protection of the information the Account Aggregators are prohibited from accessing user credentials, keeping or residing with itself the financial information of the customer accessed by it and indulging in activities such as supporting transactions by customers or undertaking any other business other than the business of account aggregator. This also seems to suggest that the Account Aggregators has no role to play in verifying or reconciling the correctness of the financial information retrieved and shared.
The AA network is primarily based on Data Empowerment and Protection Architecture (DEPA) framework which is built on the premise that users have control over their data, which can be used for their empowerment.The framework for business of an Account Aggregator is designed to be entirely Information Technology (IT) driven and AAs are required to adhere to IT frameworkand interfaces to ensure secure data flows from the financial information providers to their own systems and onwards to the financial information users.The IT systems are also expected to have adequate safeguards to ensure they are protected against unauthorized access, alteration, destruction, disclosure or dissemination of records and data. The AAs shall be subjected to Information System Audit at least once in two years and report is to be submitted to the RBI.
The launch of the AA network has received a positive and welcoming response among the financial service providers especially the lending institutions and is being longed to bring in a revolution in the nature and form of the financial information sought and the manner in which it was shared to the lenders for processing a loan application. An applicant will now be able to share all his financial and transaction information required by a lending institution seamlessly through the AA which shall equip the lender with granular information and facilitate the lender to make quick and more informed decision. Being a completely technology driven network it will reduce the time taken by FIUs to access, verify and analyze the financial information. However, one hitch is that, to understand a customers credit behavior a lender is supposed to have all of the requisite information and since here the customer has the control and option to pick and choose the information he wants to be shared, the customer may avoid to sharing a particular crucial financial information that would impact the lenders decision or it may have to again resort for traditional mode of submission.
To conclude, at the framework and programmatic level, the system of Accounts Aggregators is prepared to achieve its dual goal, first to consolidate the financial information for users and vest with them full control over its information/ data which is being shared through the ecosystem customers and second to digitalize the way in which financial information is shared with financial institutions thereby facilitating real time sharing of information and speedier provision of financial services. The ensuing status of this ecosystem will depend on several factors like participation of all the stakeholders, the security of the financial data, working of the consent architecture of the customers, different aspects of technology at the end of the Account Aggregators, etc.
More here:
- MB Shuffle: X1N0 Places Self-Empowerment in the center of Superstar - More Branches - March 20th, 2024 [March 20th, 2024]
- Oops! I called my boss 'dude.' Career coaches weigh in on tricky ... - NPR - September 17th, 2023 [September 17th, 2023]
- Servant leadership and AI: Agility and empowerment for the CLO - Chief Learning Officer - September 17th, 2023 [September 17th, 2023]
- New Book You Were Born for More Offers a Transformative ... - Digital Journal - September 17th, 2023 [September 17th, 2023]
- New academic year, new faces on campus - Central Michigan University - September 17th, 2023 [September 17th, 2023]
- Vanilla perfumes: the 8 best and long-lasting - Marie Claire UK - September 17th, 2023 [September 17th, 2023]
- Now, CCTV cams must at coaching centres - Times of India - September 17th, 2023 [September 17th, 2023]
- What would have happened if Billie Jean King had lost to Bobby ... - The Boston Globe - September 17th, 2023 [September 17th, 2023]
- Discover the synergy between biotech and medtech in Ghent - Labiotech.eu - September 17th, 2023 [September 17th, 2023]
- Offtrack: The Long Road to Asylum for LGBTQ Refugees in Greece - Pulitzer Center on Crisis Reporting - September 17th, 2023 [September 17th, 2023]
- The rise of solo dates: Why Gen Zs are embracing 'Me Time' - Nairobi News - September 17th, 2023 [September 17th, 2023]
- Libra to Pisces: 4 Nurturing Zodiac Signs Who Prioritize the Needs ... - PINKVILLA - September 17th, 2023 [September 17th, 2023]
- 2023 Northwest Indiana Women's Leadership & Innovation Summit ... - Purdue University Northwest - September 17th, 2023 [September 17th, 2023]
- How Hinewehi Mohi uses te reo and music to bring Aotearoa together - New Zealand Herald - September 17th, 2023 [September 17th, 2023]
- The 20 Most Anticipated Sequel and Reboot Movies Coming in ... - MovieWeb - June 22nd, 2023 [June 22nd, 2023]
- What Taylor Swift teaches girls about taking control of their lives and ... - Morningstar - June 22nd, 2023 [June 22nd, 2023]
- Report Points To Growth Of Asian-American Businesses In ... - iHeart - June 22nd, 2023 [June 22nd, 2023]
- Empowering Women: A Day of Firearms and Firearm Safety | P ... - NewsBreak Original - June 22nd, 2023 [June 22nd, 2023]
- EMBRACING THE SPIRIT OF AFRICAPITALISM: CATALYSING ... - The Tony Elumelu Foundation - June 22nd, 2023 [June 22nd, 2023]
- The best albums of the year so far (2023) - The Vinyl Factory - June 22nd, 2023 [June 22nd, 2023]
- Benton County Sheriff's deputies train to help kids avoid bad situations - Westside Eagle Observer - May 14th, 2023 [May 14th, 2023]
- Too Much Seduction: How to stay pure in a culture that glorifies sex, lust, lewdness - EEW Magazine - May 14th, 2023 [May 14th, 2023]
- The House of Doors by Tan Twan Eng review tragedy in the tropics - The Guardian - May 14th, 2023 [May 14th, 2023]
- More Than Just A Game How Dungeons And Dragons Is Making ... - IFLScience - May 14th, 2023 [May 14th, 2023]
- GoodHeart | 25-y-o Leneka Rhoden is a beacon of service and ... - Jamaica Gleaner - May 14th, 2023 [May 14th, 2023]
- FemTech: technology empowering women's health and well-being - Lexology - May 14th, 2023 [May 14th, 2023]
- NBA Foundation: Uplifting Memphis youth through music - NBA.com - May 14th, 2023 [May 14th, 2023]
- Greek film 'Behind The Haystacks' to be featured at Sydney Film ... - Neos Kosmos - May 14th, 2023 [May 14th, 2023]
- Grants approved for groups in Wellington North exceed budget - Wellington Advertiser - May 14th, 2023 [May 14th, 2023]
- Self-Empowerment: 7 Ways to Empower Yourself | Maryville Online - March 4th, 2023 [March 4th, 2023]
- When you take all that we encompass and the drive that we have, it's ... - March 4th, 2023 [March 4th, 2023]
- Code of Ethics: English - National Association of Social Workers - October 25th, 2022 [October 25th, 2022]
- All children deserve arts and music programs in schools, thats why Prop. 28 should be approved - San Bernardino County Sun - October 13th, 2022 [October 13th, 2022]
- The Body Positive Sex Talk Empowering Women On TikTok - Women's Health - October 13th, 2022 [October 13th, 2022]
- TCL Announces Exciting Collaboration with TCL Brand Ambassador Shyla Heal to Elevate #TCLForHer Platform and Inspire Women to Redefine Greatness -... - October 13th, 2022 [October 13th, 2022]
- The good employer: Creating and living-out a culture of empathy, empowerment and understanding - Digital Journal - October 13th, 2022 [October 13th, 2022]
- International Day of The Girl: Rotary District 9125 Empowers 850 School Girls In Kano THE AUTHORITY NEWS - THE AUTHORITY NEWS - October 13th, 2022 [October 13th, 2022]
- MEET THE CANDIDATES: Charleswood-Westwood-Tuxedo - Winnipeg Sun - October 13th, 2022 [October 13th, 2022]
- Ruth Radelet (ex Chromatics) discusses the inspirations behind her debut solo EP - Brooklyn Vegan - October 13th, 2022 [October 13th, 2022]
- Here to stay! How this OG Tagaytay wellness spa survived the pandemic, is stronger than ever - Rappler - October 13th, 2022 [October 13th, 2022]
- Washtenaw County Board of Commissioners Set to Consider $3.2M in Awards to Local Organizations as Part of the Community Priority Fund -... - October 13th, 2022 [October 13th, 2022]
- FEMALE INCLUSION AND EMPOWERMENT CONFERENCE SPEAKERS - News - htafc.com - October 13th, 2022 [October 13th, 2022]
- Graphic designer works his way to the top - The Herald - October 13th, 2022 [October 13th, 2022]
- Foundation coaches in Tanzania attend in-person training sessions - Real Madrid - October 6th, 2022 [October 6th, 2022]
- Jade Helliwell releases first EP since 2018 in upbeat celebration of women - Music Talkers - October 6th, 2022 [October 6th, 2022]
- Competing interests: protection of transgender rights and freedom of religious beliefs - the Australian perspective - Kennedys - Kennedys Law - October 6th, 2022 [October 6th, 2022]
- Adam Levine and The Try Guys: Cheating scandals hit different right now - Vox.com - October 6th, 2022 [October 6th, 2022]
- Championing the value of time and a future-proof healthcare plan for women - Malaysiakini - October 6th, 2022 [October 6th, 2022]
- Seattle Rep Announces October Programming Featuring WHAT THE CONSTITUTION MEANS TO ME & More - Broadway World - October 6th, 2022 [October 6th, 2022]
- Who are the actors playing Martin Luther King and Malcolm X? - New York Daily News - September 29th, 2022 [September 29th, 2022]
- "One Of A Million" by Softcult - Northern Transmissions - September 29th, 2022 [September 29th, 2022]
- Aesthetic Gynaecology and Regenerative Medicine Training held in Delhi by IASRM (International Association of Stemcell and Regenerative Medicine) -... - September 29th, 2022 [September 29th, 2022]
- 6 Teens Who Make The World A Better Place - Forbes - September 29th, 2022 [September 29th, 2022]
- Earn Your Leisure Partners with Steve Harvey to Assemble an All-Star Financial Lineup for Innovative Festival at London's Historic Royal Albert Hall -... - September 29th, 2022 [September 29th, 2022]
- KNUST-Obuasi campus honours Dr. Love Konadu and 25 others - BusinessGhana - September 29th, 2022 [September 29th, 2022]
- Back-to-the-office moves leave tech uneasy - Axios - September 7th, 2022 [September 7th, 2022]
- FEMALE INCLUSION AND EMPOWERMENT CONFERENCE - News - htafc.com - September 7th, 2022 [September 7th, 2022]
- Neustar and LiveVox Join Forces to Improve Outbound Customer Contactability - Business Wire - September 7th, 2022 [September 7th, 2022]
- 5 Organisations We've Teamed Up With to Empower Africa's Young People - Global Citizen - September 7th, 2022 [September 7th, 2022]
- What is Witchcore? The Aesthetic Gaining Popularity on Social Media, Explained - The Mary Sue - September 7th, 2022 [September 7th, 2022]
- After 10 years of swiping right, what have we gained from Tinder? - Sydney Morning Herald - September 7th, 2022 [September 7th, 2022]
- Sisters of the revolution: the women of the Black Panther party - The Guardian - September 7th, 2022 [September 7th, 2022]
- ANALYSIS | Only SAs elite benefits from black economic empowerment and Covid-19 proved it - News24 - September 7th, 2022 [September 7th, 2022]
- 'We need to be aware of the power of touch' - Nursing Times - September 7th, 2022 [September 7th, 2022]
- Students reminded of University resources to support mental health and wellness - Pennsylvania State University - September 7th, 2022 [September 7th, 2022]
- Boudoir photographer Amanda Robb helps 'terrified' women love their bodies - Stuff - September 7th, 2022 [September 7th, 2022]
- Super Girl Surf Pro returning to Oceanside with global surf stars like Bethany Hamilton and a music festival - The San Diego Union-Tribune - September 7th, 2022 [September 7th, 2022]
- 5 Business Experts to Learn from in 2022 - The Australian Business Journal - September 7th, 2022 [September 7th, 2022]
- Stealthy state crimes during times of disaster - Mail and Guardian - September 7th, 2022 [September 7th, 2022]
- Neha Mujawdiyas Personal Journey In Accessing Basic Education Inspired Her Startup - SheThePeople - September 7th, 2022 [September 7th, 2022]
- The Experience of Pregnant Women in the Health Management Model of Int | IJWH - Dove Medical Press - September 7th, 2022 [September 7th, 2022]
- Men are more prone to suicide than women, reveals NCRB data - The New Indian Express - September 7th, 2022 [September 7th, 2022]
- 25 Empowerment Anthems: Songs for an Extra Boost of Confidence - Billboard - August 15th, 2022 [August 15th, 2022]
- 40 years later, business of healthcare changed in very personal ways PharmaLive - PharmaLive - August 15th, 2022 [August 15th, 2022]
- Setting boundaries in your daily life can protect you from 'harmful experiences': Here are 3 tips to get you started - CNBC - August 15th, 2022 [August 15th, 2022]
- I Tested PUMA's New Frida Kahlo Collection Honoring the Iconic's Legacy - mit - August 15th, 2022 [August 15th, 2022]
- The Activist Offering: Lessons from Kansas - Progressive.org - Progressive.org - August 15th, 2022 [August 15th, 2022]
- 'The Majnu Ka Tilla Diaries' Reveals Tibetan Empowerment in India - The Wire - August 15th, 2022 [August 15th, 2022]
- Kentwood Players announces open auditions for 9 TO 5 the Musical - Culver City Observer - August 15th, 2022 [August 15th, 2022]
- 'They/Them' Review: A Slasher That Isn't as Scary or Subversive as Real Life - CNET - August 15th, 2022 [August 15th, 2022]