The Account Aggregator (AA) framework has facilitated loans amounting to Rs 42,300 crore since its launch three years back, said Sahamati, the industry alliance for the ecosystem.
During the same period till March 2024, about 4.22 million loans have been disbursed on the platform. The cumulative average ticket size of loans facilitated on the framework has been pegged at Rs 1,00,237.
In comparison, in the second half of the financial year (H2FY24), 2.12 million loans amounting to Rs 22,100 crore were facilitated on the framework. This is nearly half of the lifetime disbursement value and volume on the AA framework.
Lending firms use the AA framework for a customer’s loan journey, such as onboarding, underwriting, and monitoring of customers.
Sahamati claims transaction costs for lenders can come down by 20 to 25 per cent on the AA framework.
“The numbers represent the data submitted by nine top-performing FIUs, representing about 60 per cent of consents fulfilled for H2 FY24. The numbers, if extrapolated for the ecosystem, are much higher,” Sahamati said in a statement.
At present, the Account Aggregator ecosystem has 163 Financial Information Providers (FIPs) across banks, insurance firms, investments, pensions, and taxes, and 475 Financial Information Users (FIUs).
There are 2.12 billion financial accounts, including 1.64 billion bank accounts, in the AA ecosystem.
In India, AAs act as consent managers that operate independently of FIUs, which allows users and businesses to consensually share their financial data and manage consents in one place.
AAs use technology to ensure there is a secure exchange of data between financial institutions like banks, insurance agencies, or mutual fund companies.
The data can only be shared after securing a customer’s consent, following which it can be used to access financial services.
AA collects a user’s digital financial data from one or multiple accounts and shares it with a financial institution that may provide services such as loans or insurance.
“We have seen a steady 15 per cent monthly growth in the number of cumulative consent requests being fulfilled on the AA framework. Each consent request represents the fact that more and more individuals are now in control of their data and are using it for accessing financial services,” said B.G. Mahesh, chief executive officer (CEO), Sahamati.
In August, the AA ecosystem surpassed 100 million consents on the AA framework, with about 80-90 million Indians using the system in the country.
First Published: Sep 16 2024 | 4:56 PM IST
