Customer Awareness and Perceptions of the AA Framework

A recent CGAP and Sahamati survey sheds light on customer awareness and perceptions of India’s Account Aggregator (AA) framework. Based on responses from 1,200 smartphone users, the session dissected critical themes and offered a roadmap for bolstering financial inclusion through data-driven innovation.

Key Insights from the Survey

1. Awareness and Adoption:
   Awareness of the AA framework has grown significantly, increasing from 10% in 2023 to 32% in 2024. About 70% of respondents were willing to leverage AAs for improved loan terms. However, adoption rates remain moderate, with only 40% of eligible users utilising the consent-based data-sharing system.
2. Trust and Barriers:
   While many users appreciated the ease and convenience of AA-enabled processes, data security concerns and trust in consent managers continue to hinder wider adoption. Transparency in consent practices, including data-sharing duration and revocation options, was highlighted as a positive yet insufficiently understood feature.
3. Socio-Demographic Disparities:
   Usage patterns reflect disparities based on gender, education, and occupation. Salaried individuals are more likely to adopt AA tools than self-employed or less financially literate segments. This underscores the need for targeted awareness campaigns to bridge these gaps.
4. Lending and Personal Finance Management:
   The survey revealed that 23% of respondents sought loans in the past 18 months, with 71% offering data-sharing options via AAs. The use of AA systems doubled over a year, signalling growing recognition of its benefits in personal finance management.

The Way Forward
The discussion emphasised the importance of simplifying financial processes and enhancing accessibility. Campaigns led by RBI were lauded for their effectiveness, but further efforts are necessary to address trust barriers and educate underserved segments. The session concluded with a call to integrate survey findings with industry insights to craft actionable strategies for financial inclusion and data empowerment.

The complete session recording is available here.