Union Bank of India – The First PSB to join the Account Aggregator Ecosystem

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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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