MUMBAI:
IndusInd Bank announced that it has gone live as a ‘Financial Information Provider’ (FIP) under the new ‘Account Aggregator Framework’ of the Reserve Bank of India (RBI), making it the first bank in the country to do so.
Taking a step towards India’s entry into the world of open Banking, RBI first announced the Account Aggregator (AA) framework via a Master Directive in June 2016. The initiative is a path breaking step taken by the RBI which will enable individuals as well as small and mid–sized businesses to avail services that will help them fulfil their financial requirements in a seamless way. With this, customers can now avail a host of benefits such as viewing statements of their accounts, track deposits, plan investments (such as shares, mutual funds, Insurance, EPF, PPF), avail credit cards, etc. on a single window, thereby empowering them to take informed decisions pertaining to their finances.
As an ‘FIP’, IndusInd Bank will facilitate customers to share their financial information with Financial Information Users (FIUs) on the Account Aggregator Ecosystem in a secure and seamless manner, basis an exclusive consent from the customer. Once the other financial institutions go live on the AA framework, it will eliminate the need for collecting/submitting physical documents for getting loans or accessing other financial products and services.
Talking about the new initiative, Soumitra Sen, Head – Consumer Banking, IndusInd Bank, IndusInd Bank, said “We at IndusInd Bank have always focused on innovation in technology for customer empowerment. The Account Aggregator framework is an important step towards that direction which will empower the customer to view as well as choose their preferred product & service from banks and other participating players. We are happy to collaborate with the DigiSahamati Foundation in this exciting journey and look forward to contributing to the vision in a significant way. We strongly believe, this new proposition will bring in unparalleled convenience to customers and provide them with a rewarding banking experience.”
Also added, BG Mahesh, Co-Founder, DigiSahamati Foundation, “It’s no surprise that IndusInd has led the way in adopting the Account Aggregator Framework – they saw the game-changing ability of AA framework to India’s financial services market early on and led the industry with that conviction. As an early mover in this space, they have the opportunity to bring diverse and innovative products to market”, said BG Mahesh, Co-Founder of DigiSahamati Foundation, a Collective of the Account Aggregator Ecosystem.”
The Account Aggregator system offers the following benefits to customers:
- Eliminates the existing process of physical document submission which is time consuming
- Enables individuals and SME customers to share their financial information digitally with regulated financial institutions like banks, NBFC’s among others, within a secure framework
- Allows customers to have better control on financial information shared by providing his/her explicit consent before sharing the information
