Account aggregator framework: MSMEs want value-added services in return for sharing data, says survey  | The Financial Express

Account aggregator framework: MSMEs want value-added services in return for sharing data, says survey 

Credit and finance for MSMEs: 39 per cent respondents said they would expect personalised offers from banks in exchange for sharing their data.

Account aggregator framework: MSMEs want value-added services in return for sharing data, says survey 
Currently, CAMSFinServe, Cookiejar Technologies, FinSec AA Solutions, NESL Asset Data, Perfios Account Aggregation Services, and Yodlee Finsoft are the NBFC AAs in India with an operating license.

Credit and finance for MSMEs: A survey of over 1,000 MSMEs by Boston Consulting Group on Wednesday said a number of MSMEs are comfortable sharing their business data with banks under the Reserve Bank of India’s (RBI) account aggregator framework, however, they expect technology-enabled value-added services in return. The BCG India MSME Survey 2022, part of a BCG and FICCI report, noted that around 40 per cent of respondents were willing to share their data in exchange for personalised offers from banks as sought by 39 per cent of respondents.

24 per cent of respondents said they would be looking for lower interest rates while a discount on processing charges was sought by 21 per cent of MSMEs part of the survey and 16 per cent expected a better customer experience.

According to the RBI, account aggregators (AAs) are a new class of non-banking financial companies (NBFCs) that offers account aggregation services — retrieving or collecting information of its customer pertaining to their financial assets and consolidating, organizing, presenting it to the customer (for instance a bank) or any other person as per the instructions of the customer — in exchange for a fee. The service could be for purposes such as credit to MSMEs.

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Financial assets are referred to as bank deposits including fixed deposits, saving deposits, recurring deposits, current deposits, equity shares, bonds, ETFs, insurance policies, etc. With AA services, the user is not required to physically share hard copies of documents from various entities or confidential login details of his/her documents or browse through different sites for information required by financial service providers.  

According to V. Anantha Nageswaran, the Chief Economic Advisor to the Government of India, the lending potential to MSMEs may reach around Rs 3 trillion next year based on GST Invoices and bank statements made available on account aggregator and banks adopting OCEN (Open Credit Enablement Network). Nageswaran was speaking at the Global Fintech Festival (GFF) in Mumbai in September this year. 

Currently, CAMSFinServe, Cookiejar Technologies, FinSec AA Solutions, NESL Asset Data, Perfios Account Aggregation Services, and Yodlee Finsoft are the NBFC AAs in India with an operating license.

Also read: RBI looks to digitise SME loans end-to-end in 2023: Governor Shaktikanta Das

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First published on: 02-11-2022 at 18:43 IST