| |
|
|
Latest events and updates about Account Aggregator ecosystem
|
|
|
|
|
97.39 million
Consent requests fulfilled
|
|
84.75 million
Accounts linked on AA
|
|
613 FIs
Actively engaged in AA adoption
|
|
534 REs
Live on AA
|
|
155 FIPs
Live on AA
|
|
475 FIUs
Live on AA
|
|
87 FIPs
Available on 4 or more AAs
|
|
|
381 FIs
Sahamati Certification Framework
|
|
192 Signatories
AA Participation Terms
|
|
1,650 UAT
739 Prod
Entries in AA Registry
|
|
44,000+ (cumulative)
Grievances handled
|
|
18,000+ (cumulative)
Grievances resolved
323
Dashboards disseminated
|
|
|
|
|
|
|
|
|
In July, the highly anticipated Union Budget for FY24-25 was released. While the budget outlined key focus areas such as Employment and Skilling, Productivity and Resilience in Agriculture, Inclusive Human Resource Development, and Social Justice, it also notably highlighted the government’s efforts to advance micro, small, and medium enterprises (MSMEs).
Finance Minister Nirmala Sitharaman presented the government’s intention to ramp up financial inclusion schemes such as PM Mudra Yojana, TReDS, PM SVANidhi. These initiatives present a unique opportunity for the application of the AA Framework into MSME lending schemes. Prospective implementation of AAs is poised to reduce drop-off rates, bring down costs for both parties and enable the risk monitoring process to be more robust, thereby ensuring viable lending to MSMEs. Not only this, the cost of guarantee will also be lower for the government.
Furthermore, as presented in the budget, Public Sector Banks (PSBs) are set to develop in-house mechanisms for conducting credit-risk analysis for MSMEs. They will also lead the development of a new credit assessment model based on the analysis of MSMEs’ digital footprints in the economy. The potential implementation of the AA Framework to execute this scheme is expected to enable access to cross-sectoral structured data in real time. It would also equip PSBs to leverage this structured data in a machine-readable manner to innovate novel assessment models to better analyze the financial standing of the MSMEs. Thus, it’s worth emphasizing that AAs have the potential to be utilized in versatile ways to streamline and improve current data exchange methods.
Along similar lines, a recent report on the benefits of the Account Aggregator framework in the MSME Sector published by the Indian Council for Research on International Economic Relations (ICRIER) and the Asian Development Bank (ADB) explored in great detail the positive impact of the first phase of AA rollout the MSMEs. The report states that The AA ecosystem has simplified MSMEs’ access to credit by enabling secure, consent-driven data sharing between financial information providers (FIPs) and financial information users (FIUs).
The report further highlights that the AA network has simplified business processes by cutting costs, minimizing paperwork, and enabling loans to be processed digitally in just 3-5 clicks. In addition to providing a straightforward and secure consent mechanism for MSMEs seeking credit, the AA network is expected to foster increased competition among regulated lenders. This framework promotes fairness between banks and non-banking financial companies, thereby driving enhanced competitiveness in the financial sector.
To read the full report click here
In a separate update, Sahamati has unveiled the June edition of the Ecosystem Map. Overall, the ecosystem comprises over 600 entities, including both regulated entities comprising of Financial Information Providers (FIPs), Financial Information Users (FIUs), and Account Aggregators (AAs), as well as unregulated entities which comprises of Technology Service Providers (TSPs). This robust expansion underscores the maturity and ongoing development of the AA ecosystem, reinforcing our commitment to enhancing its scalability and success.
|
|
|
Report on Personal Finance Management (PFM) facilitated by Account Aggregators (AAs)
‘Sahamati released its first report on the impact of Account Aggregators (AAs) on Personal Finance Management (PFM) as a use case. The report delves deeper into the steady growth of SEBI FIUs in the AA ecosystem. The report underscores that in FY24, Registered Investment Advisors (RIAs) experienced a steady growth of 16% per month, while Stockbrokers, starting from a lower base, saw rapid growth at 32% per month, reflecting increased adoption of Account Aggregators (AAs) across various Financial Institution Users (FIUs) thereby signaling ecosystem maturation. The PFM report also emphasizes how AAs have the potential to democratize advisory services in India by enabling trusted entities like RIAs to provide scalable and accessible advisory solutions.
|
|
|
|
|
|
|
Account Aggregator (AA) workshop in Bengaluru
Following the success of our previous roadshows in Chennai and Delhi, Sahamati proudly hosted its third workshop in Bengaluru on August 6, 2024. This engaging event was attended by 45+ organizations, including NBFCs, banks, LSPs, stockbrokers, RIAs and TSPs. The workshop provided a dynamic platform for in-depth exploration of the AA ecosystem, featuring discussions on adoption status, insights, and practical demonstrations of AAs across various use cases such as lending, insurance, PFM, and assisted journeys.
Key highlights included a presentation on the technical roadmap for supporting 100 million consents, a dedicated session on the fair use system and code of conduct, and an interactive discussion on best practices to optimize the AA journey and boost success rates.
|
|
|
|
|
Sahamati joins the dialogue on DPDPA Rules in Bengaluru
On July 27th, Foundation of Data Protection Professionals in Indi ( FDPPI) and Naavi hosted a hybrid event in Bengaluru that drove discussions around Digital Personal Data Protection Act (DPDPA) rules across a wide range of industries. The full-day event featured esteemed panelists who shared insights on the new rules and gathered feedback from various industries, including Fintech, Healthcare, Digital Marketing, Education, Startups, MSMEs, and Manufacturing. Mr. BG Mahesh, CEO of Sahamati, discussed how Consent Managers (CMs) from the DPDP Act align with the AA ecosystem’s goals. He also delved into the AA ecosystem’s strategic roadmap, highlighting the integration of CMs and their role post-DPDPA implementation.
|
|
|
|
|
Pragati session on “Leveraging AA for Digital lenders” in collaboration with DLAI
Sahamati, in association with Digital Lenders Association of India (DLAI), conducted a webinar exclusively for DLAI Members. The webinar included a comprehensive array of sessions that provided valuable insights into the AA ecosystem. The event began with an overview of the AA Framework, highlighting ecosystem progress. It featured demos on the Lending Journey and discussions on the Current State of the Ecosystem, sparking active conversations on scalability. Real-world Use Cases and Case Studies across various sectors were explored, emphasizing the potential of AAs to bridge financial gaps. The webinar concluded with a showcase of the LSP-AA Flow, demonstrating the value derived from this association.
|
|
|
|
|
Sahamati Intensifies Efforts to improve risk management in the AA ecosystem
Sahamati is actively engaging in discussions to implement robust measures aimed at mitigating fraud within the financial sector through Account Aggregators (AAs). In tandem, AA Tech Leads group (a collaboration of practitioners from AAs) is developing and enhancing risk management for AA applications, ensuring a secure and reliable experience for users accessing the AA platform.
Parallely, Sahamati also addressed the concerns raised by the Reserve Bank of India (RBI) on recent fraud incidents. These incidents involved fraudsters exploiting compromised SIMS and devices to use AA applications for targeted phishing attacks. Therefore, it becomes crucial to address that this issue is not a breach of Account Aggregator systems but rather a consequence of the compromised SIMs.
Read the complete response from Sahamati and the Account Aggregator (AA) Steering Committee of the ecosystem below.
|
|
|
|
|
Consent Template Update:
What’s New
In the past month, the Lending, Personal Finance Management (PFM), and Cross-Sectoral Use Case Councils successfully finalized three consent template discussions. Additionally, the Insurance Use-Case Council reviewed and refined the bank verification template, which has been integrated into the Cross-Sectoral Consent Template. Furthermore, technical guardrails have been introduced for PFM to enhance security and streamline the process, reinforcing the need for fair use of AA for the PFM use case.
|
|
|
|
|
Strengthening the Tech-Infra for the
Ecosystem through Proxy
Sahamati Proxy is an open-source proposed technology intervention that is layered on top of the standard, open protocols of the ecosystem. It aims to foster interoperability through a routing mechanism for API requests and responses amongst FIPs, FIUs, and AAs. We are actively engaged in concept testing for the Proxy feature. Our focus is on collaborating with stakeholders across the ecosystem to evaluate and refine the usability of Proxy, ensuring it meets the needs and expectations of all users. This collaborative effort is aimed at optimizing the functionality and effectiveness of Proxy before its broader implementation.
|
|
|
|
|
|
|
|
 |
|
Github
|
|
|
|
 |
|
Twitter
|
|
|
|
 |
|
LinkedIn
|
|
|
|
 |
|
Youtube
|
|
|
|
|
|
|
|
Do not wish to receive mails from Sahamati? Click here to unsubscribe
|
|
|
|
|
