Indian launches account aggregator system

India launched the Account Aggregator framework on Thursday which promises to consolidate all financial data of clients in a single place and extend credit services to them dependent on that information rather than collateral.

Four significant Indian banks HDFC, ICICI, Axis and IndusInd are as of now live on the record aggregator organization, which represents around 40% of all ledgers in India, and different banks like SBI, IDFC First Bank, Federal Bank and Kotak Mahindra Bank are currently joining the system.

Record aggregators are basically non-banking financial organizations, authorized by RBI, that go about as a delegate to collect and consolidate information from all Financial Information Providers (FIP) that hold clients’ very own financial information like banks and offer that with Financial Information Users (FIU) like loaning offices or wealth management organizations that provide financial services.

It is significant that account aggregators will approach information from a client’s current and bank account, which separates them from customary credit departments like CIBIL and Experian which gather just loaning items information or risk side information. Nonetheless, not at all like credit authorities, for the time being, account aggregators don’t have a rating system, however it very well may be built into the system.