Several banks in India will roll out account aggregators (AA) next month to centrally manage customer data and enable easy access to financial services, Bloomberg has reported.
After experimenting with data technologies for a year, at least three private banks will launch AA services next month.
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In the first phase of the launch, AA services will be restricted to opening current and savings accounts.
Later, the AA service will allow opening recurring and term deposits, the report added citing people familiar with the development.
Presently, 12 banks are working with four licensed AA providers in the country. These AA providers are said to be non-banking financial companies (NBFCs).
NBFCs are the technology medium between companies seeking customers’ financial data (FIUs) and those that hold that data (FIPs).
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By GlobalDataThese companies include banks and non-banks, insurance companies, and mutual funds.
Through the AA service, one lender can digitally send documents to another lender with the customer’s consent.
This removes the need for paperwork for customers who intend to open accounts, get loans, or access other financial products.
OneMoney – the AA service of FinSec AA Solutions – and Perfios Account Aggregation Services is one of the AA service providers, the Bloomberg report added.
NBFC institution Cookiejar Technologies also aims to launch an AA service called Finvu next month.
According to Bloomberg, one of the banks that will implement the account aggregator system is Kotak Mahindra Bank.
Kotak Mahindra Bank president and CDO Deepak Sharma said: “We shall plan commercial roll-out in the coming months.
“This may take time because we need to see how the network shapes up, how other banks and institutions come on board for the system to attain critical mass.”
Additionally, Axis Bank said it will be one of the early adopters of AA service, once the ecosystem goes live.
Axis Bank head of digital banking Sameer Shetty said: “We are in the testing phase with our AA systems and are working on multiple use-cases, especially in the areas of loans and liabilities.”
