Benefits of Account Aggregator (AA) System

The Account Aggregator framework could be a financial data-sharing system aggregating a customer’s financial information at one portal and facilitating the consented flow of information between regulated entities, Banks and NBFCs. It empowers customers to digitally access and control their financial records and eases the method of knowledge sharing and exchange with financiers. This framework creates the road for Open Banking in India, and it’s a reliable, transparent, and efficient platform for consent-based data sharing amongst regulated entities.

The Account Aggregator (AA) is expected to make the credit risk assessment process simpler for Financial Information Users. The benefits of Account Aggregator (AA) can be beneficial to individuals and financial service providers and are as follows:

Accelerates loan processing and enhances the efficacy of credit services - The customer’s consented financial data accessed by the AA system will allow lenders to thoroughly assess the customer’s financial transactions history and process loan applications faster by following due processes and diligence digitally.
One digital framework - With the assistance of AAs, users can share data easily with the financial service providers like lenders, or portfolio management service/wealth service providers and other financial institutions by bringing together one’s data at one place and by extending a single digital framework to share it in the real time.
Consented data sharing of users’ - This is one of the important benefit of the AA system i.e. no data can be shared without the user’s consent. Customer can access all consents given and all consent provided through AAs are also designed to be revocable anytime. In case where the individual revokes his consent for personal or business data, then the FIU can connect with the borrower offline and find a solution. Therefore the customer becomes the owner of his data and promotes consented data sharing system.
No paperwork or KYC required - Once a customer’s financial institution is registered with the AA network which whom one has bank account with, the customer doesn’t need to undergo the KYC process when applying for loans subsequently. The borrower only has to give consent to the AA, who can extract all the details, including KYC and provide the same to the lender where the borrower is applying for a loan.
High Data Safety & Security - The AA framework is expected to lower and almost reduces it to negligible cases of breach of account related data shared in physical form and the data being shared is encrypted and is decrypted only at the receiver’s end. The FIUs need to adhere to the data governance guidelines and norms that are now drafted to prevent instances of data misuse.
Staying technologically updated – We know how technology and innovation is transforming and disrupting technologies and the way we work. The system of customer and process transformations & innovations has always been interdependent. AA provide ease to the customer experience by staying up-to-date with the dynamic and fast-moving industry competition and trends.
The AA framework will allow customers to get different financial services from various providers on a single portal based consent method under which consumers can select what financial data to share and that too with which entity. It allows users to control as to who can access their data and track and log its movement and reduce the risk of data leakage.

Conclusion
The AA framework allows clients to grant or revoke access, and manage the visibility of private and sensitive financial information. The AA also supports the financial inclusion of poor MSMEs by providing financial institutions with an expanded view of their financial profile within seconds of being approved by the borrower. Greater visibility into MSME's financial information makes it easier for MSMEs to access formal financing. we've also expanded our lender's customer base, which provides access to large amounts of monetary information to assess customer creditworthiness. the last word goal of the Account Aggregator Framework is to hurry up the credit valuation process, enable tamper-proof, secure data exchange, and reduce general financial information asymmetry.