A Billion Accounts are now on AA. Now what?
Updated on Aug 8, 2022
Thanks to a concerted effort across the Finance Ministry, RBI, and banks, all major PSU and private sector banks are now on the account aggregator network as FIPs. By some estimates, that opens up over a billion bank accounts that customers can link and share data from for their own benefit. As new data sources such as GSTN, SEBI- and IRDAI – regulated entities join the network, the scale and scope of data available on the network will be truly staggering.
Are service providers ready to compete in this new world? Here are a few points worth considering.
Financial inclusion will accelerate and expand in scope
For decades, financial inclusion meant opening bank accounts for the poor and making sure that welfare payments reached them directly. With the JAM trinity having solved this efficiently at scale, these bank accounts are creating digital data – payments, remittances, loan servicing, etc. – for the hitherto excluded. Account Aggregators will make it easier and safer for these customers to share their data for their benefit – for example securing low value, low-tenure, cash-flow based credit using their banking and GSTN data.
Soon, as insurance, securities, and pension sectors join the network, the scope of financial inclusion can increase to understand not just a customer’s immediate needs but also long-term financial health.
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