Axis, ICICI, Bajaj Finserv And SBI Likely To Adopt Account Aggregator Framework
A platform for financial services to reach out to consumers, account aggregators aim to seek consent before using a consumer’s personal data, in order to optimise their product offerings.
As per reports, Axis, Bajaj Finserv, ICICI, IDFC First, HDFC, IndusInd, Kotak Mahindra, and State Bank of India, are in stages of discussions of adopting the account aggregator (AA) framework. This was as per an industry body, just ahead of a public rollout of the new technology product in May.
Responsible for transferring and not storing client data, account aggregators are expected to perform well. According to the Reserve Bank of India, an AA ecosystem would be a platform for financial service companies to contact customers to ask for consent before using a consumer’s personal data to optimise their product offerings.
As of now, Cams Finserv, FinSec AA Solutions and Cookiejar Technologies have received operating licenses from the Reserve Bank of India. Also, the Kotak Mahindra Group said that it would be launching a pilot among 50,000 employees, in order to test use cases for the AA framework in banking, broking, wealth management, and insurance.
Talking of Kotak Mahindra, they have designed a testing app for the pilot, wherein employees can generate an AA ID, and also view their portfolio across all its entities. It also sees use cases in lending, including small and medium enterprises (SMEs), personal financial management and underwriting.
Several fintech startups like Lendingkart has also set up a sandbox within the company to test AA use cases on internal company data.