In a remarkable achievement of the country’s fintech ecosystem, total number of successful consents on the Account Aggregator (AA) framework has crossed 100 million in three years (as of August 15) , a report said on Tuesday.
About 80-90 million people are using AA in India, which translates to nearly 8 per cent of the adult population, according to DigiSahamati Foundation (Sahamati), an industry alliance for the AA ecosystem.
In FY24, AA consents grew by 1,059 per cent, which signifies the phenomenal adoption and inroads of open finance in India, making it the fastest-growing open finance ecosystem in the world.
The research states that by the end of FY25, the present use and penetration of open finance and the AA Framework should reach a penetration rate of 25–30% of the Indian population.
According to BG Mahesh, CEO of Sahamati, “the use cases have been expanding with FIUs (financial Intelligence Units) using AA for streamlined tasks like customer onboarding to specialized tasks like controlling frauds.”
Customers’ consent requests increased from 5.5 million in FY 2022–2023 to 63.75 million in FY 2023–2024, which the speaker said “indicates a higher degree of comfort and acceptance of the system.”
The Reserve Bank of India (RBI) has launched the AA network as a means for exchanging financial data. As a non-bank finance company (NBFC), AA’s business is to provide the service of obtaining or gathering customer-specific financial data.
A system known as “Open Finance” permits users to share their financial information with unaffiliated vendors, hence facilitating the creation of new financial goods and services.
“Our objective is to democratize financial services and data sharing, making AA available to customers in the most remote regions of India,” stated Mahesh.
From the fundamental use case of underwriting loans, the usage has grown to include portfolio management, personal financial management, loan collections, insurance policy issuance, establishing of demat accounts, monitoring of loan accounts, early warning signal assessment, and investment advisory.
