For instance, the first of the account aggregators to receive their license, Onemoney, is expected to go live in April.
By Hariprasad Radhakrishnan
After the Reserve Bank of India (RBI) issued licenses to three account aggregators (AA), the platforms are gearing up for launch, and would come out with their client-facing mobile or web application soon, with one of the aggregators to go live as early as April. Account aggregators help unlock data from various financial information providers (FIP), including banks, NBFCs, mutual funds, insurance, GST department, among others, and provide them to financial information users (FIU) that offer various products and services in the banking, financial planning, investments, insurance and other sectors, based on consent from the customer.
For instance, the first of the account aggregators to receive their license, Onemoney, is expected to go live in April. It is working with more than 30 partners across various segments of the financial services industry, says A Krishna Prasad, founder-CEO of Finsec AA Solutions, which owns Onemoney. Meanwhile, CAMS FinServ, another AA platform, which received the RBI licence recently, is expected to be operational by June, says Anuj Kumar, president & CEO, CAMS. “We have started the efforts to onboard financial information users and providers, and as enthusiasm and excitement builds in the industry, we expect more and more banks, NBFCs, insurance companies and mutual funds to join in,” he said.
Cookiejar Technologies, which has a product named FinVu, also recently received its licence from the central bank. Four other platforms – Jio Information Solutions, NESL Asset Data, Perfios Account Aggregation Services and Yodlee Finsoft – have received in-principle approval.
Currently, Axis Bank, Bajaj Finserv, ICICI Bank, IDFC First Bank, HDFC Bank, Indusind Bank, Kotak Mahindra Bank and State Bank of India are in various stages of their FIU/FIP implementation, according to Sahamati, a collective of the account aggregator ecosystem. “The initial reluctance of FIPs to share the data, when the account aggregation domain was evolving, is not there anymore. The data belongs to the people, and FIPs are ready to share the data that they are custodians of,” said Prasad.
BG Mahesh, co-founder of Sahamati, says that the AA platforms are in the final leg of the ‘wave one marathon’. “They passed the proof-of-concept stage last year. Now, the largest public sector bank (SBI) and a few large private banks are in the pre-production stage. In the coming month, they are expected to go into production,” he said.
While the FIPs currently belong to the financial services sector, he expects other FIPs including the GST, CBDT and Trai to join the ecosystem, once the policy framework is in place. Mahesh said that the number of AAs is expected to increase substantially this calendar year. “I am reasonably sure that big techs are also watching this exciting space closely. Chances are they want to be part of wave two and not wave one of the next big wave of fintech in India.”