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Nandan Nilekani introducing the Account Aggregator at CUG on July 25, 2019

25 Jul 2019

India is at a unique juncture in its history. With the advent of digital technologies and the spread of cheap mobile internet, we are at a point when Indians soon become data-rich, before its people become economically rich.

This is a unique situation globally, and we have to cross uncharted waters to convert this data wealth into real wealth for the users. To do this, we need to think beyond the usual Data Protection conversations happening in the rest of the globe and think of a Data Empowerment & Protection Architecture [DEPA].

Based on the Electronic Data Consent released by MeitY, the Ministry of Finance, RBI, SEBI, PFRDA, IRDAI announced its intent to create NBFC-Account Aggregators.

nandan nilekani
Mr. Nandan Nilekani, Founding Chairman, UIDAI introducing Account Aggregator to the gathering

On 26th April 2019, 7 of these AAs have gone into a closed user group testing. This is an epoch moment when the users in India can claim ownership over their own financial data.

We hope that this will accelerate the revolution of cash flow based lending that will replace the existing paradigm of collateral-based lending. This isn’t only a consumer-centric innovation.

Access to the right data means lenders can proactively monitor and evaluate currently disbursed loans. Such a move will not only increase the quantity of lending through increased access but also the quality of lending through better screening of borrowers, early alerts, etc.

The presentation can be seen here.

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