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 will soon become data-rich before their 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, and IRDAI announced their intent to create NBFC-Account Aggregators.
On 26th April 2019, 7 of these AAs went 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.
Also see,
- Press Release: Sahamati Hosts Account Aggregator Launch Event in 2019
- Media Coverage for July 25 AA Closed User Group Event
- Watch Mr Ajay Prakash Sawhney, Secretary, MeitY addressing the gathering at CUG on July 25, 2019
- Watch Ms Madhabi Puri Buch, Whole Time Member, SEBI addressing the gathering at CUG on July 25, 2019
- Watch Mr Prakash Kumar, CEO GSTN addressing the gathering at CUG on July 25, 2019
- Watch Fireside Chat with Early Adopters Moderator: Ms. Arundhati Bhattacharya, Former Chairperson SBI, Mr. Rajnish Kumar, Chairman SBI, Mr. Amitabh Chaudhary, MD & CEO Axis Bank, Mr. Anup Bagchi, Executive Director, ICICI Board of Directors, Mr. B. Madhivanan, COO, IDFC First