On the fourth anniversary of India’s Account Aggregator (AA) ecosystem, the government announced that over 11 crore (112 million) users have linked their financial information through AAs. This digital framework enables secure, consent-based sharing of financial data, allowing seamless access to financial services while maintaining user privacy.
Key Highlights
- Users Linked: 11 crore users have connected bank accounts, loans, investments, and insurance data via the AA ecosystem.
- Functionality: AAs do not store data but act as intermediaries between:
- Financial Information Providers (FIPs): Banks, NBFCs, insurers
- Financial Information Users (FIUs): Wealth managers, lenders, insurance providers
- Consent-Based Model: Ensures privacy, security, and control for users while enabling real-time data sharing for financial decision-making.
Adoption Across Financial Institutions
- Total Institutions Engaged: 578
- Dual Role (FIP & FIU): 112 entities
- Exclusive FIPs: 56 entities
- Exclusive FIUs: 410 entities
- Insurance Sector: Growing adoption in underwriting, particularly for term insurance, allowing insurers to design more relevant, affordable, and accessible products based on real-time financial data.
Strategic Significance
- Digital Public Infrastructure: AAs serve as a critical layer of India’s Digital Public Infrastructure (DPI), enhancing financial ecosystem efficiency.
- Financial Inclusion: Supports initiatives like “Insurance for All by 2047” by extending coverage to underserved populations.
- Innovation: Facilitates data-driven product design and smarter financial decision-making across banking, lending, and insurance sectors.
Summary
India’s Account Aggregator ecosystem has reached a significant milestone, connecting over 11 crore users and engaging 578 financial institutions. Its consent-based, secure model not only safeguards user privacy but also promotes financial inclusion and innovation, reinforcing India’s push toward a digitally empowered and inclusive financial economy.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.