Punjab National Bank onboards Account Aggregator (AA) Ecosystem

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Punjab National Bank onboards Account Aggregator (AA) Ecosystem

Punjab National Bank has announced that it has on-boarded Account Aggregator (AA) platform to help customers digitally access and share information from one financial institution to other regulated such entities.

The initial benefit of AA Ecosystem can be the 83,00,000+ customers onboarded during the last few months through Digital Apnayen Campaign.



The AA system helps banks leverage data acquired digitally through customers' consent. It thus eliminates the need for physical documentation furnishing by a customer for other financial usages.

Punjab National Bank is the second public sector lender to go live in the ecosystem, acting as Financial Information User (FIU) and Financial Information Provider (FIP), the bank said on Thursday.

An FIU can request data from the FIP based on a simple consent given by the customers on their Account Aggregator handle.

QUOTE

"Punjab National Bank is working on multiple business use cases, which can leverage the AA ecosystem and offer interesting products to its customers. This will further enhance the outreach of the bank to provide customised digital products to its customers," Atul Kumar Goel, MD and CEO of PNB, said.

 

UNQUOTE

 

Punjab National Bank (PNB), India’s first Swadeshi Bank, commenced its operations on April 12, 1895 from Lahore, with an authorized capital of INR2,00,000/- and working capital of INR20,000.

The Bank was established by the spirit of nationalism and was the first bank purely managed by Indians with Indian Capital.

During the long history of the Bank, 9 banks have been merged/ amalgamated with PNB.

DOMESTIC BRANCH NETWORK - As at the end of March’ 2022, Bank has total 39,167 delivery channels with a network of 10,098 domestic branches, 2 International branches, 13,350 ATMs & 15,719 Business Correspondents.

 

Read more about Punjab National Bank's 'Digital Apnayen', campaign @ https://www.business-standard.com/article/finance/digital-apnayen-pnb-launches-campaign-to-encourage-digital-banking-120081500963_1.html

Punjab National Bank kickstarted its AA journey with a Request For Proposal released on 20th November 2021.

The Go-Live in the Account Aggregator Ecosystem is the culmination of the RFP.  

If more curious:

FIP stands for ‘Financial Information Provider’ – the data fiduciary. FIPs are the institutions which hold your data, for e.g. For example, your Bank, NBFC, Mutual Fund Depository, Insurance Repository, Pension Fund Repository, etc

 

FIU stands for “Financial Information User’. An FIU consumes the data from an FIP to provide various services to the end consumer. For e.g. a lending Bank wants access to the borrower’s data to determine if a borrower qualifies for a loan. The lending Bank is the FIU. Banks play a dual role – both as an FIP and an FIU.

 

Can an entity consume data but not share data. Can it be just an FIU and not a FIP?

Strictly, No. As per the principle of reciprocity, the entity needs to be a FIP first and then an FIU.

Examples include issuer/acquirer in UPI or a bank must report to then access credit bureau data.

 

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