Are Account Aggregators interoperable?

Several Founders, Co-Founders, CXO Bankers, CXO Fintech professional & people who participated in the ePanel discussions:

  • Mr. Anupam Mishra, SVP- Product Management, Transaction Banking at IndusInd Bank
  • Mr. Murtuza Jadliwala, Head of Software Development at IndusInd IT
  • Mr. Abhishek Arun, Chief Operating Officer, Paytm Payments Bank
  • Mr. Narayan Rao, Chief Services Officer, Suryoday Small Finance Bank
  • Mr. Sony A, Jt. General Manager, South Indian Bank
  • Mr. Rajiv Rai, former Chief Digital Officer, Edelweiss Financial Services
  • Mr. Anupam Varghese, Chief Tinkerer, Tinkerbee Innovations
  • Mr. Arun Nair, AGM-Business Development, Smart Chip Pvt Ltd
  • Mr. Himanshu Khare, former Head Corporate Legal & Advisory, VISPL
  • Mr. Abhishek Mody, former Associate Director-Payment & Digital Initiatives, IDFC FIRST Bank
  • Mr. Vikas R Panditrao, Co-Founder, Forum of Industry and Academic Knowledge Sharing (FIAKS)
  • Many other CEO/CXO Bankers & Fintech professionals on FIAKS Forum requested to remain anonymous

Recently, IndusInd Bank went live on the Account Aggregator Framework. So, what is an Account Aggregator? Well, an Account Aggregator is a Consent Manager for Financial Data: a new class of NBFC approved by RBI to manage consent for financial data sharing. [1]

So, the FIAKS community raises some questions on Account Aggregator Interoperability;

Question 1: Are these account aggregators (AA) interoperable i.e. if customer X wants to shift from AA1 to another aggregator AA2.

Question 2: Will this happen instantly?

Question 3: Why can’t consent move from AA1 (eg Finvu) to AA2 (Karvy)? So that I need not have to keep giving 100’s of consent again to the new AA2. (Just for information, AA can be anyone from- Perfios, Finvu, KARVY, Reliance Jio, etc)

Question 4: Isn’t there a need to create a central body like NPCI or UIDAI to make it interoperable?

Now say for instance, If I submitted all my mark sheets to college A to get an admission and later get to know that I have got an admission in better college say B so again I have to submit all the certificates to college B. Isn’t this painful? Why can’t the central body be created in which all my mark sheets are kept with a unique ID number like Aadhaar number? I just give that number and consent to shift from college A to College B. In the case of Central KYC, I need not submit the same set of documents again to shift bank accounts.

Is interoperability possible? From one AA to another?

  • Yes, it depends on which AA id the user uses to fetch the details.  All AA will connect to all FIP, customers can also create another ID on another AA. Eventually, all banks and lenders will need to be connected to all AAs, as per mandate. The objective is to present complete alternate scoring. AA is just one part of the OCEN ecosystem.
  • All FIP and FIU need to connect to all AA (FIP=Financial Information Provider; FIU=Financial Information User). FIP and FIU = all banks and lenders. Unless one becomes FIP, they cannot be FIU (Consumer of Data) – consent-driven.
  • A member questioned is question one of these- (a) interoperability between one AA and another AA or (b) whether can the data format used for one AA be used with another AA or does it require different developments for each AA. For this scenario, the example is of credit bureau data submission – the same format for all bureaus, no difference.
  • Data and API formats are the same, if you connect with one AA you can connect with any AA with, same specifications. Exactly. Then what is the definition of interoperability here? One AA cannot talk to another AA as per current regulations. There won’t be cross AA talk, one-to-one integration of all AAs to FIP. Today Cibil and Experian don’t talk to each other. Right.! And they don’t need to as well.

Now here’s a query put forth by a member– Customer ABC is having an account with Bank X which is on Perfios as an account aggregator wants to shift to Bank Y which uses Finvu as an account aggregator. Can customer ABC shift from Bank X to Bank Y? Will this shift be instant?

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2021-03-12T17:50:33+05:30March 12th, 2021|Categories: FIAKS bespoke|Tags: |Comments Off on Are Account Aggregators interoperable?

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