How Account Aggregators Are Revolutionizing the Financial Industry
List of Licensed Account Aggregators
The Account Aggregator - a game changer for FIUs
The financial industry has undergone significant changes over the years, with new technologies and innovations continuously emerging. One such innovation is account aggregators, which are revolutionizing the way we manage our finances. Account aggregators are digital platforms, and part of the India Stack along with UPI, Aadhaar etc, that allow users to consolidate their financial data from multiple banking & investment accounts in one place. This has resulted in consumers benefitting from significant ease & security and financial service providers benefitting by being able to offer innovative services. Let's take a closer look at how account aggregators are changing the financial industry.
|Perfios Account Aggregation Services Pvt Ltd
(Product titled Anumati)
|Anumati is a brand owned and offered by Perfios Account Aggregation Services Pvt Ltd, the NBFC-AA licensed by RBI.|
|CAMS FinServ||A subsidiary of Computer Age Management Services (CAMS), which is India's largest registrar and transfer agent for mutual funds.|
|CRIF Connect Private Limited||CRIF connect is an RBI licensed NBFC Account Aggregator|
|Dashboard Account Aggregation Services Private Limited (Product name Saafe)||Saafe is an empowering one-stop solution for providing a real-time aggregated view of financial assets for individuals and businesses.|
|FinSec AA Solutions Private Limited (Product titled OneMoney)||India's First Account Aggregator, Licensed by RBI. There parent company, FinTech, is building a data governance platform for data fiduciaries.|
|NESL Asset Data Limited||NeSL Asset Data Limited (NADL), a wholly owned subsidiary of NeSL, has been given the certificate of registration* by RBI to provide the services of an Account Aggregator (AA) duly retrieving or collecting, consolidating,organizing and presenting financial information|
|Protean (formerly NSDL E-Governance Account Aggregator Limited) (Product titled Protean SurakshAA)||Protean’s wholly owned subsidiary receives RBI’s license to operate as Account Aggregator|
|PhonePe Technology Services Private Limited||PhonePe Account Aggregator Pvt Ltd, a fully owned subsidiary of the PhonePe Group, has got in-principle approval from RBI to operate as an account aggregator (AA)|
|Yodlee Finsoft Private Limited||A subsidiary of Envestnet Yodlee, a global leader in financial data aggregation and analytics|
|Cookiejar Technologies( Brand name Finvu)||Cookiejar Technologies Pvt Ltd (brand name Finvu) has been given the NBFC-AA (NBFC Account Aggregator) certificate of registration|
These account aggregators are regulated by the Reserve Bank of India (RBI) and are required to comply with strict data privacy and security guidelines. By providing citizens with a platform to consolidate their financial data, account aggregators in India are helping to drive innovation and improve financial inclusion in the country.
Account aggregators have made it much easier for individuals and businesses to manage their finances. Instead of having to log into multiple accounts to view transactions, balances, and other data, users can now consolidate their data in one place using services powered by account aggregators. This not only saves time but also helps users make more informed financial decisions.
By democratizing financial data, account aggregators have created a level playing field among competitors by making it easier for users to compare products and services. With all their financial data in one place, users can easily compare interest rates, fees, and other charges from different financial institutions. This transparency & increased competition has resulted in better products and services as well as highly tailored services for consumers in real time.
Account aggregators have made financial planning easier and more accurate. By consolidating all financial data in one place, account aggregators can provide users with a comprehensive view of their financial situation. This information can be used by financial planners & investment advisors to create accurate plans, make better recommendations, track progress, and adjust strategies as necessary.
Account aggregators have also improved security and reduced fraud in the financial industry. By moving to a paperless flow for data sharing & by using secure connections and encryption technologies, account aggregators can protect sensitive financial data from unauthorized access. Users can also grant access to their financial data on a need-to-know basis, reducing the risk of data misuse.
Account aggregators have played a significant role in the rise of open banking. Open banking is a concept that allows third-party providers to access financial data from banks and other financial institutions to provide banking services. Account aggregators act as intermediaries between financial institutions and third-party providers, making it easier for users to share their financial data with different apps and services.
Open finance is a broader concept that encompasses not just banking, but also other types of financial services, such as lending and insurance. Like open banking, open finance involves the use of APIs to facilitate data sharing between financial institutions and third-party providers. However, it goes beyond banking to encompass a wider range of financial products and services. With account aggregators covering all types of financial data types including banking, investment & insurance data, open finance has received a significant boost leading to more ease, more transparency and better services to end customers.
Financial Information Users (FIUs) such as banks, fintechs, NBFCs, neobanks, wealth advisors etc can immensely benefit from account aggregators in several ways:
● With the help of account aggregators, FIUs can simplify their processes by gaining access to consolidated financial data. Data collection and analysis can be streamlined, and possible financial frauds can be identified more easily.
● By providing standardized data sets that are consistent across multiple sources, account aggregators can help improve the quality of financial data.
● A number of account aggregators provide FIUs with real-time financial data, enabling them to identify risks and respond accordingly.
● Anti Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations can be met by account aggregators, which can assist FIUs in meeting regulatory requirements. Providing a secure and standardized platform for data aggregation can reduce non-compliance risks and prevent regulatory fines.
In conclusion, account aggregators are revolutionizing the financial industry by providing a more convenient, secure, and transparent way to manage financial data. As a result, these entities are increasingly partnering with financial institutions to streamline their operations, improve their offerings to customers and improve their financial crime prevention capabilities. They have increased customer choice & services received, improved financial planning, and played a significant role in the rise of open banking. While there may be some limitations to account aggregators, their benefits are significant, and they are undoubtedly changing the way we manage our finances.