What is Account Aggregator?
An Account Aggregator (AA) is a type of non-banking financial company licensed by the Reserve Bank of India (RBI) under the NBFC-AA framework. It acts as a secure, consent-based bridge that lets individuals and businesses share their financial data such as bank statements, insurance policies, and mutual fund holdings with other regulated financial institutions. Data is never shared without the explicit permission of the customer, ensuring privacy and control over one’s financial information.
Benefits of Account Aggregator
Account Aggregators offer several advantages for users and service providers alike:
- They give customers full control over their financial data, allowing them to grant, revoke, or limit access at any time. This transparency builds trust and reduces the risk of unauthorized data sharing.
- By aggregating data from multiple sources, AAs enable faster and more accurate loan underwriting, leading to quicker approvals and better interest rates.
- Financial institutions gain a unified, real-time view of a customer’s financial health, empowering them to design personalized products like tailored insurance plans or investment recommendations.
- AAs reduce paperwork and manual processes, improving operational efficiency across the banking and finance ecosystem.
Features of Account Aggregator
Account Aggregators are built on robust technology and governance standards. Key features include:
- Consent Management: Users provide explicit, time-bound consent before any data sharing occurs.
- Data Encryption: All data transmitted through the AA network is encrypted end-to-end, ensuring confidentiality and integrity.
- Data-Blind Architecture: AAs never store or process the actual financial data they simply facilitate its secure transfer between FIPs and FIUs.
- Interoperability: Standardized APIs allow seamless connectivity between banks, NBFCs, insurance repositories, and other financial entities.
- Auditability: Every data request and transmission is logged, enabling transparent audit trails and grievance redressal.
- Regulatory Oversight: The RBI, along with sectoral regulators such as SEBI, IRDAI, and PFRDA, governs the AA ecosystem to uphold data protection and compliance.
How does Account Aggregator Work?
When a customer wishes to share data, they use an AA-licensed app to select the specific accounts and duration of access. The AA then sends a digitally signed request to the relevant Financial Information Providers (FIPs) for example, banks or mutual fund houses. Once the customer approves, encrypted data flows from the FIPs to the AA, which immediately forwards it to the designated Financial Information User (FIU), such as a lender or investment advisor. Throughout this process, the AA remains “data-blind,” meaning it never stores the content of the information it transfers. Only metadata such as who shared what, when, and with whom is held, supporting full traceability without compromising privacy.
The Future of Financial Data Access
The AA ecosystem in India is rapidly maturing. As of October 30, 2024, the RBI had granted certificates of registration to fourteen Account Aggregator entities, with over 2.2 billion financial accounts enabled and 112 million users linked on the network. Additionally, more than 112 financial institutions now operate as both FIPs and FIUs, while 410 have come live solely as FIUs, and 56 as FIPs. Looking ahead, the RBI has invited applications to establish a self-regulatory organization for Account Aggregators, with proposals due by June 15, 2025. This SRO will harmonize standards, streamline dispute resolution, and further boost adoption across diverse financial sectors.
How to Use an Account Aggregator?
To get started, choose an RBI-licensed AA app such as CAMS FinServ, Cookiejar (Finvu), or Digio. Download and install the app, then complete a one-time registration using your mobile number and Aadhaar/PAN-based verification. Next, select the financial accounts you wish to link banks, insurers, or mutual funds and specify which institution (for example, a lending bank) can access which data. Approve the digitally signed consent request, and your data will flow securely to the chosen FIU. You can view, modify, or revoke these permissions at any time within the app, giving you granular control over your financial footprint.
How Account Aggregator Differ from Traditional Banking?
In traditional banking, customer data remains siloed within each institution, requiring lengthy paperwork and repeated submissions for loans or insurance. In contrast, Account Aggregators enable seamless, real-time data exchange across multiple entities based on customer consent. Traditional systems demand manual interventions and physical documentation, while AAs automate data retrieval and transfer via standardized APIs. Furthermore, AAs operate with a data-blind principle, ensuring that no single intermediary holds all the information unlike many conventional banks, which maintain full visibility into customer records. This shift fosters a more open, customer-centric model of financial services.
Role of Account Aggregators in Financial Services
Account Aggregators are catalysts for innovation in India’s financial landscape. By providing lenders with instant, consolidated financial profiles, they accelerate credit decisioning and reduce non-performing assets. FinTech startups leverage AA networks to offer cashflow-based lending, robo-advisory, and micro-investment platforms. Insurers use aggregated data to personalize premiums and streamline claims processing. Regulators benefit from transparent audit trails and standardized reporting. Ultimately, AAs support financial inclusion by simplifying access to credit and insurance for underserved segments, bridging gaps between consumers, banks, and emerging digital services.