Around 160,000 bank accounts linked to at least one a/c aggregator
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Mumbai: Initial data on user sign-ups suggests that around 160,000 bank accounts have been linked to at least one of the account aggregators, Kotak Institutional Equities said in a report. However, the actual number of users who have signed up with an account aggregator is likely to be quite lower, it added. An account aggregator enables individuals, small and mid-sized businesses to avail services such as sharing their financial information digitally with regulated financial institutions such as banks, and nonbanking financial companies,
among others, within a secure framework. There are about five account aggregators that have launched operations. Around 25 institutions and most of the large private banks are live on account aggregator, whereas data on mutual funds, insurance and goods and service tax is not linked yet, which limits the utility of account aggregators, Kotak Equities said.
"These are still early days given that some of the large banks (like State Bank of India and Bank of Baroda) are yet to go live and most of the nonbank data is yet to be made available." Kotak Equities said. From its interaction with ecosystem participants, Kotak Equities said that the adoption of account aggregators will likely happen in two ways--user-initiated sign-up through mobile application download and linking their accounts or during the process of service delivery.
financial information users will request for a consent to fetch data from such aggregators and if the user is not signed-up, then a profile would get created on the fly.
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