An Account Aggregator (AA) is an RBI-recognised non-banking financial entity that acts as a bridge between your financial information and financial institutions, like banks, with your consent. It allows you to securely share your financial data, such as bank statements, tax information or salary records, with banks when applying for a loan.

Previously, sharing such information involved gathering multiple documents from various banks. With AA, all of this information can be shared in a few clicks from your bank accounts to the lender without needing physical paperwork, as long as both you and the lender are part of the AA network.

What is Account Aggregator? – Sahamati

The AA network operates through regulated entities, including banks and other financial institutions, known as Financial Information Providers (FIPs) or Financial Information User (FIU). Here’s how it works:

• Register on the AA Network:Once you decide to apply for a Loan, you can choose to register with an AA.
• Consent-Based Data Sharing:Using your consent, the AA enables you to grant access to specific financial data from your bank accounts or other financial institutions to the lender. You control what data to share, and access can be revoked anytime.
• Encrypted Data Exchange:Once you provide consent, the AA fetches the necessary information from your FIP (such as your bank) and securely shares it with the FIU (like the lender) using strong encryption. Your data is never stored with the AA. This way, the transaction remains private and secure.
• Loan Processing: With the required information in hand, the lender can quickly assess your eligibility, verify your income, and process your loan application.

Opting for an Account Aggregator provides several benefits for Loan applicants:

• Simplified Documentation: You can avoid the hassle of collating multiple physical documents from different banks. The AA platform lets you provide digital access to your financial records, simplifying the documentation process for a Loan.
• Enhanced Privacy and Security: AAs don’t store your financial data and use end-to-end encryption for data sharing.
• Reduced Processing Time:By quickly sharing verified data with the lender, the AA network reduces the time it takes to process your loan application.
• Transparency and Control: The consent-based model allows you to decide exactly what data to share and with whom, giving you transparency and control over your personal information.

With an AA-enabled loan application, you can speed up the process of getting access to funds at Hiranandani Financial Services Private Limited, you can apply for Business Loans and opt for document verification through secure AA channels and get access to your Loan faster.

1. Is Account Aggregator safe in India?

The Account Aggregator framework is regulated by the RBI, ensuring that data sharing is compliant with strict guidelines. Also, AAs use end-to-end encryption and do not store any personal or financial data.

2. Is it necessary for a customer to register with all of the AAs?

It’s not mandatory to register with all AAs. You can choose any licensed AA service provider to register and share your financial data with the lender. Once registered, you’ll be able to use the AA platform to share your data with lenders within the network.

Below are some regulatory aspects associated with account aggregator systems:

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

1. Login: Use your registered mobile number to log in to the Account Aggregator website or app (e.g., Onemoney or Finvu).
2. Check active consents: View the details of your active consent.
3. Review details: Confirm the consent and its associated details.
4. Revoke consent: Select the consent you wish to revoke and click on “Revoke.”
5. Revoke confirmation: Confirm your action by clicking “Revoke Consent” to proceed.
6. Confirmation notification: Receive a notification or SMS once the consent has been successfully revoked.

• 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 shamelessly 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

*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Loan shall be sanctioned at the sole discretion of HFS. Loan disbursal is subject to documentation and verification as per Company’s requirement.