August 2024 marked an important ecosystem milestone for the Account Aggregator (AA) industry—100 million successful cumulative consent-based data-sharing transactions! In less than three years since its public launch in September 2021, the ecosystem has crossed this significant milestone. This achievement marks the AA ecosystem as one of the fastest-growing Open Finance implementations globally.
As of August 2024, with 106.23 million successful consents, the AA ecosystem has experienced an exponential Year-over-Year growth of 425%. Furthermore, as of August 15, 2024, Sahamati estimates that around 80-90 million people, roughly 8% of India’s adult population, are utilizing the Account Aggregator (AA) framework. These statistics are outcomes of the dedication, diligence, and drive of the industry to institutionalize data empowerment in the financial sector!
This vision is strongly supported by regulators, policymakers, and key decision-makers who recognize the critical role of the Account Aggregator (AA) framework as India’s Digital Public Infrastructure (DPI). India’s Honorable Prime Minister, Shri Narendra Modi, speaking at the Global Fintech Fest (GFF) in Mumbai, highlighted how the AA framework simplifies data-sharing and expands access to financial products, particularly for underserved communities. Similarly, at the Global Conference on DPI and Emerging Technologies in Bengaluru, Honorable Governor Shri Shaktikanta Das acknowledged the AA framework as a pivotal lever for transforming the financial sector.
The FY25 Sahamati Governing Council made key decisions to address ecosystem challenges that hinder the further realization of this vision. The council has urged Sahamati to fast-track the Proxy architecture and the billing and reconciliation infrastructure for the ecosystem as part of the SahamatiNet initiative. The GC has extended its in-principle support for SahamatiNet to bolster the technology infrastructure of the ecosystem. SahamatiNet will receive final ratification from the GC after a comprehensive review from the Technology Advisory Council (TAC) and regulatory approval.
In another significant development, the Reserve Bank of India has recognized the Fintech Association for Consumer Empowerment (FACE) as the self-regulatory organization (SRO) for the fintech ecosystem. On similar lines, there is a discussion to come up with a SRO framework dedicated towards the AA ecosystem. In the latest meeting, GC has unanimously supported the corporate structural changes in our alliance, like the membership drive and equity fundraising, to conform with RBI’s Omnibus SRO Framework.
The diverse range of ecosystem participants across sectors, use cases, and scale of operations makes the SRO-AA a one of its kind framework. Institutionalizing a cross-sectoral ecosystem requires significant efforts across advocacy, operations, technology, and governance. The alliance has stabilized and expanded the ecosystem from a nascent to a nebulous industry. However, for the next scale-up phase, the SRO framework enables strengthening the alliance to tackle complex ecosystem-building challenges effectively.
We look forward to continuous cooperation and support from the ecosystem to establish the world’s most sophisticated Open Finance regime!
Moreover, we are also very pleased to announce the Sahamati BuildAAthon 2024, a hackathon which is part of the annual SamvAAd 2024, focused on driving financial inclusion, data empowerment, and financial sector resilience through innovative solutions within the Account Aggregator (AA) ecosystem. The BuildAAthon is an exciting platform for young entrepreneurs, builders, and technology enthusiasts to envision the future of Open finance in the country. We urge the ecosystem members to spread the word within your network and encourage innovators to participate. This is a great opportunity for teams to develop impactful solutions and showcase their innovations in the Open Finance Space!
