Bengaluru, Aug 20. A report released on Tuesday said that the total number of successful approvals on the Account Aggregator (AA) framework has crossed the 100 million mark within three years (as of August 15), a remarkable achievement by the country’s fintech ecosystem.
According to DigiSahamati Foundation (Sahamati), an industry alliance for the AA ecosystem, about 80 to 90 million people use AA in India, which is nearly 8 percent of the adult population.
In FY 2024, AA approvals increased by 1,059 percent, underscoring the phenomenal adoption and progress of open finance in India and making the country the fastest growing open finance ecosystem in the world.
According to the report, the current usage and adoption of the Open Finance/AA framework is expected to reach a penetration of 25-30 percent of the Indian population by the end of FY 2025.
“The use cases have expanded with FIUs (Financial Intelligence Units) leveraging AA for streamlined tasks like new customer onboarding to specialized tasks like anti-fraud,” said BG Mahesh, CEO of Sahamati.
The increase in consent requests by customers from 5.5 million in FY 2022-23 to 63.75 million in FY 2023-24 “indicates a higher level of comfort and acceptance of the system,” he added.
The AA network was introduced by the Reserve Bank of India (RBI) as a system for exchanging financial data. AA is a non-banking financial company (NBFC) engaged in providing services for retrieving or collecting financial information about customers.
Open Finance is defined as a framework that enables customers to share their financial data with third parties, enabling the development of new financial products and services.
“Our goal is to make AA accessible to customers in the most remote parts of India, thereby democratizing financial services and data sharing,” said Mahesh.
Usage has expanded from the basic use case of lending to include personal finance management, portfolio management, evaluating early warning signals and monitoring loan accounts, loan collection, issuing insurance policies, opening dematerial accounts, and investment advice.
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