Introducing a new network called Account Aggregator Network : Introducing the convenience of integrating your bank accounts and accessing financial services through the network. In the first phase, 8 banks will provide this service.
Introducing Accounts Integration Network
India last week launched a financial data transfer system called the Accounts Integration Network–AIN; It will revolutionize investment and lending; be very accessible to millions of consumers and have control over their financial documents; Extends customer financing to lenders and fintech companies. The accounting coordinator system empowers individuals with control over their personal financial data; Otherwise they will remain in the data collection.
Transparent banking to India
This is the first step towards bringing transparent banking to India; It empowers millions of customers to access information digitally and share their financial data securely and seamlessly with companies.
"Accounts Coordinator System has been introduced in eight major banks in India."
The Accounting Coordinator system will make lending and money management faster and less expensive.
1) What is an Accounts Coordinator System (AAS) ?
Accounts Coordinator System (AAS) is a type of system (with NPFC and AA licensee) regulated by RBI; It is secure and digitally accessible to the individual and enables the transfer of information through a network from one financial institution with which they have an account to another formal financial institution. Data cannot be shared without personal consent.
There will be a lot of account coordinator time; One can choose from them.
Instead of accepting lengthy terms and conditions in the form of ‘unscheduled checks’, the account manager modifies the gradual authorization and control of each use of your data.
2) How will the new accounting coordinating system improve the financial life of the average person?
Transform the account integration network (AIN) into a mobile-based digital data retrieval
Now India’s financial practice causes a lot of problems for customers – directly sharing signed and scanned bank documents, carrying around with notary’s signature or bond documents, or giving their complete financial details using their personal usernames. and sharing passwords with third parties. All of this will easily transform the account integration network into a mobile-based, secure digital data retrieval and sharing. This will create new types of service opportunities – for example new types of lending opportunities.
Integrated into the integration network
An individual’s bank and accounts only need to be integrated into the integration network. Eight banks have already merged – four of which (Axis, ICICI, HDFC, IndusInd Bank) are already sharing data on approval basis; Four more (State Bank of India, Kotak Mahindra Bank, IDFC First Bank, Federal Bank) are to be commissioned soon.
3) How is the account consolidation system different from systems like Aadhaar eKYC data sharing, credit bureau data sharing and CKYC?
Aadhaar eKYC and CKYC allow sharing of only four ‘identifiable’ data (such as name, address, gender) for KYC (Know Your Customer) purpose. Similarly, credit bureau data only shows complete details about loans and/or credit point collections. Account coordinator system–ACS allows sharing of transaction data or banking information from savings/deposit/current accounts.
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4) What kind of data can be shared?
Bank transaction data (such as current or savings account bank data) are currently available for sharing between banks; These go straight to the internet.
The AA framework will gradually make all financial data available to clients including tax data, pension data, stock market data (mutual funds and brokerages) and insurance data. It will also extend health and telecom data beyond the financial sector to the individual through AA.
5) Can AAs view or ‘integrate’ personal data? Is data sharing secure?
The account coordinator cannot view the data; They will simply move it from one financial institution to another based on the guidance and approval of the individual. Contrary to the name, they cannot ‘sync’ your data. AA’s are not like tech companies that integrate your data and your background information.
The data shared by the Accounts Coordinator–AA can only be modified by the sender in the form of a code by the sender. The use of end-to-end technology and use of technology like ‘digital signature’ makes this process more secure than paper documents.
6) Can a customer decide that they do not want to share data?
Yes. Registering with Accounts Coordinator –AA is fully customizable for customers. If the bank used by the customer is affiliated with this network, they can choose to register with AA when ‘approving’ the new lender or financial institution they wish to link, and the data from one of their accounts can share. Through one of the account coordinators for a specific purpose. The customer may refuse to share at any time. If a Customer agrees to share data for a continuous period of time (eg during the borrowing period), this may be canceled at any time at the Customer’s discretion.
7) Once a customer shares their data with a company for how long can they use it?
At the time of approval for data sharing, the receiving company will show the customer the exact duration of the application.
8) How to get customer registration with AA?
You can register with AA through their processor or website. AA will provide the application method (such as username) to use during the approval process.
There are currently four processors (FinVu, OneMoney, .CAMSFinserve, NADL) available for download with the functional license to be AA. Three more processors (PhonePe, Yodlee, Perfios) have received policy approval from RBI; Let’s start the processor soon.
9) Is it necessary for the customer to register with each AA?
No. The customer can register with any AA to receive data from any bank through the network.
10) Is the customer required to pay AA for using this facility?
It will be AA-compatible. Some AA can be free; Because they charge service fee from financial institutions. Some may charge a small fee from the user.
11) What new services can a customer get if their bank connects to a AA network to share data?
There are two major services that can improve an individual’s credit and cash management. Currently if a customer wants to do a small business or personal loan, it is necessary to share a lot of documents with the lender. It is now a difficult and painstaking exercise; This affects the time taken to get the loan and take the loan. Similarly, cash management is now complex; Since data is stored in different locations, it cannot be easily integrated into analysis.
Accounts Coordinator error-free secure data process
Through the Accounts Coordinator, a company can obtain error-free secure data quickly and cost-effectively and the credit related process is quick; Thus a customer can come in a hurry and get the loan. Get customer loans without real estate network with reliable exchange of future invoices or cash receipts directly from government practice like GST or GeM
