Union Bank of India – The First PSB to join the Account Aggregator Ecosystem
Union Bank of India – The First PSB to join the Account Aggregator Ecosystem
Just
before my Birthday i.e 29th April 2022, Union Bank of India released
a Press Release.
This press
release in an important landmark in India’s banking industry.
Union Bank of
India vide Press Release dt. 29/04/2022, announced to the world that it has become
the first public sector Bank to go live on the Account Aggregator Ecosystem for
participating in Govt. of India’s Digital Initiatives.
In brief,
Account Aggregator is an Ecosystem to assist the Lenders to leverage on Digital
data acquired with the consent from the Customers for providing them a seamless
journey and eliminating the need of physical documentation.
The key is
customer consent. The major participants in the Account Aggregator Ecosystem
are FIUs and FIPs
Financial
Information User (FIU) can request for data from the Financial Information
Provider (FIP) based on a simple consent given by the Customer on their Account
Aggregator handle.
Union Bank of
India plans to be both FIP and FIU enabling its customers to share Data
digitally on real time basis.
Union Bank has
implemented the technology stack as per the Reserve Bank Information Technology
(ReBIT) guidelines.
Union
Bank of India has partnered with Perfios Software Solutions Pvt. Ltd., a
Sahamati empanelled TSP, to implement a full-stack solution for Financial
Information Providers (FIP) and Financial Information Users (FIU) as per the
ReBIT guidelines on the bank's premises.
The
development was completed in a record-breaking time of under 3 months. The
solution implemented at the bank is highly scalable with capability to process
a large number of requests. This feature will be necessary when Union Bank Of
India’s spread over India, start to see the benefits of Account Aggregator Ecosystem.
The foundation
modules to be developed in the Account Aggregator Framework for Financial
Information Providers (FIP) and Financial Information Users (FIU) are the FIP
and FIU modules that connect to the account aggregators in the ecosystem.
Financial
Institutions can choose to develop the FIP and FIU modules internally. This
process may be long drawn and also not the most efficient option.
To overcome
the associated challenges, most institutions prefer to use the services of
technology service providers (TSP) to come onboard the Account Aggregator
Ecosystem. After the implementation of the FIP/FIU module at the client site
certification is recommended from Sahamati empanelled certifiers.
A TSP is not
required to have an NBFC-AA license to offer its services.
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