Account Aggregator Platform went live on 2nd September. Many from the fintech domain, are excited about this. Here is my take on what exactly Account Aggregator is? and why is it been seen as the next digital revolution?

(Explained mostly through Memes)
In our country, getting a loan from traditional sources like banks was very difficult for MSMEs & SMEs due to the current lending infrastructure. Predominantly the sources used to be loan sharks or chit funds that charge exorbitant interest rates.
In order to solve this problem, India’s top regulatory bodies came together and decided to create a framework that will make sharing of financial data through banks, mutual funds, and other sources easy. This gave rise to introducing a new Framework that is Account Aggregator.
Account Aggregator is essentially a mediator that will make sharing the financial data between concerned parties easy. The concerned parties here are Financial Information Providers(FIP) and Financial Information Users(FIU).
FIPS can be :
- Banks
- Mutual Fund house
- Insurance Agency
- Tax/GST platform

FIUS can be :
- NBFCs
- Pension funds
- Wealth Manager
- Insurance Agency
- Robo Advisors
This is a step towards providing better financial products and services to a largely untapped and unorganized market of SME’s, MSMEs

The most important part here is “Consent”. Users will have the power in their hands whether they want to share financial information.
All the data in the Account Aggregator framework will be encrypted and masked. Account Aggregator will not be storing the data

How does this sharing happen? through the magic of API.
There is going to be a centralized API repository between the Account Aggregator participants which will enable sharing of data

This is a step towards users leveraging the power of their data while also having control
What's in it for Fintech Firms?
Fintech firms are welcome to join as
- FIP's
- FIU’s
- AA’s
- TSPs
- Certifiers

Let’s Deep Dive In. What is the benefit for firms to join as AA participants?
Benefits for FIP:
- Gain better access to the user’s data from other information provider entities
- Increase in Addressable market and build for next billion users
- opportunity to build a platform for personalized services, based on consent drove user data on AA apps
Benefits for FIUs :
- All FIPS can become FIUs
- Opportunity to provide personalized services
- Get rich consented data instantly
- Rich verified user data from GST invoices
- Provide faster credit to users, attracting more small businesses
- Remove the physical exam of data, quick access to untampered data
Lending is simpler
- Faster Balance Statements Verification -> Fater onboarding of users
Benefits for AA's?
- 6 account aggregators already approved by RBI
- Business opportunities as the medium which empowers different fintech products and banks
- Build platforms that deploy revolutionary architectures like OCEN, DEPA
Benefits for TSPs?
- Will help in creating processes for AAs
- Help in bringing multiple players together in the AA ecosystem
- Essential part of the AA ecosystem
- Chance to be the backbone of financial experiences
Use cases: Build product catering to next billion users
For a long time, MSME's, SME's have struggled with raising loans for their businesses. Now through the AA platform, they can leverage their data as collateral for raising loans. AA approvers, now entertaining the companies who are in the line of acquiring licenses. 👇
Materials I referred to:
sahamati.org.in/providers/#acc…
the-ken.com/story/sahay-in…

techcrunch.com/2021/09/02/ind…
@sahamati a volunteer organization has been the driving force for delivering this. A new phase of financial inclusion awaits because of their contribution.
That's it, folks! I believe memes can be an effective way to learn complex concepts. I try to break down and explain anything that interests me ranging from Finance, Education, Product Management domain every Wednesday. Follow me for such more deconstructs 🚀

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More from @rahuldeshpande2

11 Apr
Just Finished 2nd Week of Cohort 2 @StoaHQ. Within a week the learnings have been immense and here are my experiences till now(Mostly through Memes)
Understanding Business Concepts together:
- Learn core business concepts
- Collaborate as a Team on Case Studies
- Flexibility to ask questions however dumb/silly it might be
- Platform to promote Ideas, thoughts and understandings
Community and Camaraderie:
- Diverse people with different backgrounds, interests, and age groups yet the amount of “OMG, Same!” being used while conversing is infinity
- Highly collaborative environment
- Place to share, learn, fail and grow
- At times Bakchodi
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