I’ve been reading about the Account Aggregator (AA) system introduced by the RBI, but I’m still unclear about how it actually works. How does the Account Aggregator framework function in practice what are the roles of Financial Information Providers (FIPs) and Financial Information Users (FIUs)?
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So here’s a step by step guide on how Account Aggregators work-
1.) Register with an AA-
Firstly you have to register with an account aggregator
2.) Link accounts-
You then link your bank accounts or other financial services (called Financial Information Providers or FIPs) to the AA platform.
3.) Consent request and approval-
When you want to apply for a loan, the Financial Information User or FIU(bank) will request access to your data from AA and then you will have to provide consent to AA to provide your financial data to FIU and you can choose what data to share, for how long, and with whom.
4.) Secure Data Sharing-
Once you give consent, your financial data is shared digitally and securely from the FIP to the FIU.
5.) FIU uses the data-
FIU(lending ba s or apps) uses this data to evaluate your eligibility for services like personal loans, business credit, or financial planning.
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Hey AArav, The Account Aggregator system is basically a secure, digital consent manager introduced by RBI, acting as your personal data gatekeeper. In simple terms, when a lender or financial app (called a Financial Information User or FIU) needs your financial details, say for a loan application, they request your permission through an AA app. You get notified, check exactly what’s being asked for, and decide whether or not to approve. If you give a thumbs-up, the AA securely fetches the required information directly from your bank or other financial providers (called Financial Information Providers or FIPs), and safely transfers it to the FIU. The beauty is, your data stays private and under your control at all times, nothing moves without your consent.