Pragati August 2023: Depositories Data on AA

04 Sep 2023

The recent Pragati session focusing on Depositories as Financial Information Providers (FIPs) within the Account Aggregator (AA) network unveiled a pivotal development in the AA ecosystem. The session delved into the complexities and consequences of accessing and using depository data through AA and how it will shift in the financial landscape.

Keynote Session by Mr. Nehal Vora, MD & CEO @ CDSL

Mr. Nehal Vora, MD & CEO of Central Depository Services (India) Ltd. (CDSL), initiated the discussion with a keynote address that shed light on why depositories embrace the FIP role within the AA ecosystem. He underscored the importance of investors comprehending the reasons behind granting data access consent. The keynote speaker laid the foundation for two fundamental questions: the purpose of data access and the extent of data required. Mr. Vora emphasized the shared responsibility of data holders and users in ensuring the security of this information, including the ability to withdraw consent at any time. Notably, the Data Protection and Privacy Act was brought into focus, placing data protection firmly on the shoulders of data providers.

Ecosystem Updates and Use Cases

A presentation on the comprehensive overview of the AA ecosystem while exploring the roles of consent managers, FIPs, FIUs, and account aggregators kickstarted the discussion on the importance of cross-sectoral data on the AA Network. As the conversation progressed, attention turned to the multifaceted use cases of depository data across industries. These use cases spanned from wealth management and lending to insurance. The presentation highlighted the critical role of depository data in wealth management, enabling advisors to offer precise advice on asset allocation, goal tracking, portfolio rebalancing, and even inheritance management. This holistic view of financial health enhances the quality of advisory services.

Securities-related Schema Discussion and Demonstration

Rachna Dhadda, Senior Manager of Business Development and New Projects at CDSL delved deep into the intricacies of data retrieval using the AA network. The process involved data fetch flows, consent management, and secure personal and transactional data transfer. A live demonstration illustrated linking accounts, obtaining customer consent, and securely sharing equity data. This hands-on exploration gave participants a practical understanding of how data flows within the AA network.

The presentation delved into the difference between the incumbent process of fetching depository data through Consolidated Account Statements (CAS) and the up-and-coming AA framework. In essence, CAS provides consolidated monthly statements, whereas AA offers real-time data with more flexible data retrieval options and explicit consent requirements. AA covers a broader range of FI types and is vital in securely managing user data in the financial ecosystem.

TSP Spotlight Session by Finarkein Analytics: Harnessing Data for Insights

Nikhil Kurhe, Co-Founder and CEO of Finarkein Analytics, spotlighted depository data’s practical applications. He emphasized that high-quality data forms the foundation of robust analytics tools, empowering businesses in risk profiling, product creation, and more. Mr. Kurhe discussed the immense potential of using depository data for credit evaluation, corporate treasury management, and partnership firm evaluations. He showcased how data insights enable businesses to make informed decisions across various financial domains.

Towards a Data-Empowered Future

The Pragati session on “Depositories as FIPs on AA Network” marked a significant leap forward in financial data utilization. By embracing the role of FIPs, depositories are driving a data revolution that empowers individuals and businesses to make more informed financial decisions. The session encapsulated the AA ecosystem’s evolving responsibilities, opportunities, and challenges.

As the financial landscape continues its digital transformation journey, the session served as a pivotal moment for participants to understand and harness the potential of depositories as FIPs. This evolving ecosystem is poised to reshape how data is accessed, managed, and utilized, opening up new horizons for data-driven financial insights.

To watch the entire recorded session with the demos presented, check out the link below:

Check out the presentation on the use cases of depository data on AA here: Depositories on AA.pptx
Find the data and the schema for the depositories data here – Data & Schema for Depositories