The race to stay ahead of the digital disruption curve has compelled many domains to adopt emerging technologies, and the BFSI sector leads the pack. Technologies that support and enhance the customer-facing processes of BFSI are in major demand around the globe. Account Aggregator is one such initiative that has the potential of revolutionizing the digital experience and convenience of customers while dealing with financial institutions.

An Account Aggregator (AA) is an RBI regulated entity (with an NBFC-AA license) that enables customers to securely and digitally access and share information from one financial institution they have an account with to any other regulated financial institution using the AA network to extend the credit and other banking services. To ensure security and control in hands of the customer, data can only be shared with consent from the customer. Built on the theme of Unified Payments Interface (UPI), financial experts are projecting AA as another game-changer in providing financial products.

Banks that have joined the AA network

Eight banks have joined the AA network so far, namely, Axis, ICICI, HDFC, IndusInd Bank, State Bank of India, Kotak Mahindra Bank, IDFC First Bank and Federal Bank.

How does it work?

In simple words, the Account Aggregator System acts as an intermediary to collect data from Financial Information Providers (FIP) that hold the customer’s personal financial data and share the same with Financial Information Users (FIU) such as lenders that offer financial products. There are hundreds of use cases that are emerging from the AA access.

6 Benefits of Account Aggregator for customers looking for loans

As mentioned earlier, there will be many Account Aggregators an individual can choose between. Account Aggregator can make lending and wealth management a lot faster and cheaper while ensuring the customers’ data security.

  1. Expedite loan processing and enhance the efficacy of credit services:

The customer’s consented financial data accessed by the AA system will allow lenders to thoroughly assess the customer’s financial history and process loan applications faster by following due processes and diligence digitally.

  1. No paperwork or KYC required:

Once a customer’s financial institution is registered with the AA network, the customer doesn’t need to undergo the KYC process when applying for loans subsequently. The borrower only has to give consent to the AA, who can pull all the details, including KYC and provide the same to the lender where the borrower is applying for a loan.   

  1. Secured data processing:

The RBI has defined strict data sharing and privacy guidelines for the AA framework to follow. The data shared by the AA system will have secured digital signatures. The data will be fully encrypted while in transit from the originating bank to the institution the customer is seeking a loan or other financial product from. An AA is data-blind as whatever data gets processed through it is encrypted and can be processed only by the FIU who has sought the data. The AA cannot see or store the data. 

  1. Streamlining customer’s data:

It is highly painstaking and cumbersome to retrieve the financial data of a borrower scattered across different financial institutions. Here, an AA plays a major role by consolidating and bringing large amounts of data in one place with the customer’s consent and further providing it to the specific bank or lender as requested.

  1. Single dashboard to access:

AA systems enable the customer to access various financial services scores of institutions on a single portal. Depending on the customer’s consent and choice, AA chooses what financial information to fetch and share with which bank/lender. The borrower has full control over the data and can even set a timeframe for which the data sharing will be open for the bank to pull and share in the system.

  1. Quick and hassle-free:

Since the AA system replaces manual data collection, gathering, and updating with digital and quick data processing, it saves time, improves coordination and reduces confusion among banks or customers.


Undoubtedly, the AA is a game-changer in the lending space. It’s surely a step in the right direction towards creating a robust and revolutionary lending ecosystem. With the escalating rise of digitalization in the financial hemisphere, banks and financial institutions are turning themselves into digital lending powerhouses. However, many are still struggling to kickstart their digital lending journey, and others want to step up their digital lending game. Here, Decimal Technologies enters the frame. It helps banks and other lenders have an end-to-end digital approach for loan processing. It’s digital lending solutions enable their customers to access loans anywhere, anytime, with omnichannel support and device-agnostic features.

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