7 takeaways’ from Sahamati Account Aggregator Workshop in Bengaluru!

         

Sahamati building on the success of events in Chennai and Delhi, announced its first Account Aggregator workshop in Bengaluru.

This workshop took place on 6^th August 2024, i.e today.

I had an opportunity to be part of the workshop today.

There were 7 takeaways from the workshop

Takeaway 01) Keep in mind that traffic can disrupt one's trip plans. There are several reasons why traffic moves slowly.

Takeaway 02) Before attending any workshop, spend some time on the organiser's website reviewing the agenda.

Takeaway 03) The Account Aggregator Framework is a work in progress. In recent years, there has been a greater appreciation of the benefits of Alcoholics Anonymous. Nonetheless, a significant distance must be covered.

Takeaway 04) Data format harmonisation has begun, and it is expected to lead to automated data crunching.

Takeaway 05) Building adequate rail guards is the most important medium-term goal. Adequate rail guards are important to strengthen the trust of the data owners in providing their consent.

Takeaway 06) There are multiple hops to present the data to the Requestor / FIU between the data request step and the final display. The more the hops, the more the chances for failures. Sahamati is taking steps to minimize the failures.

Takeaway 07) Provide feedback to the organisers. Typically, there are two types of feedback. A) Al-Carte feedback. B) Specific feedback in the requested feedback by the organisers.

 

 

To understand the magic of Account Aggregator framework, please refer to this summary

 

**Exploring the Account Aggregator Network: India’s New Frontier in Financial Data Sharing**

 

In the first week of Sept 2021, India took a significant step towards transforming its financial landscape with the introduction of the Account Aggregator (AA) network.

This new financial data-sharing system promises to revolutionize how consumers interact with their financial information, offering unprecedented access and control while expanding opportunities for lenders and fintech companies.

 

**What is an Account Aggregator?**

 

An Account Aggregator (AA) is a regulated entity licensed by the Reserve Bank of India (RBI) under the NBFC-AA category. Its primary role is to securely facilitate the transfer of financial data between institutions based on the explicit consent of the individual. Unlike traditional methods of data sharing, which often involve cumbersome paperwork and manual processes, the AA system introduces a streamlined, digital approach.

 

With the AA network, individuals gain control over their personal financial data, which has traditionally been scattered across various institutions. This system not only enhances privacy but also simplifies the process of sharing data with financial entities.

 

**How Will the AA Network Benefit the Average Person?**

 

Currently, managing and sharing financial information in India can be a hassle. Consumers often need to deal with physical documents, notarization, and even share personal login credentials. The Account Aggregator network simplifies this by enabling a secure, mobile-based digital process. This shift will likely lead to more efficient services, including faster and more affordable loans and wealth management solutions.

 

**What Sets Account Aggregator Apart from Other Systems?**

 

The AA network differs significantly from other data-sharing systems like Aadhaar eKYC, credit bureau data sharing, and CKYC. While Aadhaar eKYC and CKYC are limited to basic identity information, and credit bureau data primarily focuses on loan histories and credit scores, the AA network allows for a comprehensive sharing of transaction data, including bank statements.

 

In the future, the AA framework will expand to cover a broader range of financial data, including tax, pension, securities, and insurance information. It may even extend to non-financial data such as healthcare and telecom information.

 

**Is Data Sharing Secure?**

 

One of the key features of the Account Aggregator network is its emphasis on security. Account Aggregators do not view or aggregate personal data. Their role is solely to facilitate the transfer of data based on user consent. The data is encrypted during transfer and can only be decrypted by the intended recipient. This end-to-end encryption and the use of digital signatures ensure that data sharing is secure and more reliable than traditional paper-based methods.

 

**Can Consumers Opt-Out of Data Sharing?**

 

Yes, participation in the AA network is entirely voluntary. Consumers can choose to register with an AA, select which accounts to link, and specify the purposes for which their data can be shared. They also have the flexibility to revoke consent at any time, whether for one-time data sharing or ongoing access.

 

**How Long Can Data Be Used by Institutions?**

 

The duration for which a recipient institution can use shared data will be clearly communicated to the consumer at the time of consent. This transparency ensures that individuals are aware of how long their data will be accessible.

 

**How to Get Registered with an AA?**

 

Consumers can register with an AA through their respective apps or websites. Upon registration, they receive a handle (similar to a username) for use during the consent process.

 

**Do Consumers Need to Register with Multiple AAs?**

 

No, a single registration with any AA allows access to data from all participating banks and institutions within the network.

 

**Are There Costs Associated with Using an AA?**

 

The cost structure may vary depending on the AA. Some might offer free services while generating revenue from financial institutions, while others may charge a small fee to consumers.

 

**What New Services Can Be Expected?**

 

The Account Aggregator network is set to enhance several key financial services. Access to loans will become faster and more efficient, reducing the need for extensive paperwork and collateral. Additionally, money management will improve as individuals can consolidate their financial data from various sources, making it easier to track and analyze their investments.

 

By enabling seamless digital sharing of financial data, Account Aggregators pave the way for more innovative financial products and services. They act as consent brokers, ensuring that users have control over their financial information and how it is used.

 

In summary, the Account Aggregator network is a transformative development in India’s financial sector, offering enhanced security, control, and efficiency in managing and sharing personal financial data.

As the network grows and evolves, it will likely become a cornerstone of the country’s financial infrastructure, benefiting both consumers and financial institutions alike.

For more information, this is a useful link @ https://sahamati.org.in/what-is-account-aggregator/.

I am advocating for World Safe ePay Day.

The final goal of all my Blog Posts and social media interactions is to have a Day declared as World Safe ePay Day.

 

 

Safe and Stylish: Unveiling World SafeePay and Blouse Day Delights

 

The need for observing World SafeePay Day and World Blouse Day arises from the absence of dedicated global celebrations for these concepts.

World SafeePay Day aims to celebrate the joy of safe electronic payments in all financial transactions, representing an abstract celebration that highlights the significance of secure and efficient digital financial interactions. As the world increasingly relies on electronic payment systems, having a designated day for SafeePay emphasizes the importance of secure and reliable digital financial transactions.

 

On the other hand, World Blouse Day seeks to celebrate the joys of wearing blouses in a more lively and visually impactful manner. The concept involves a powerful display of togetherness, with millions of people stepping out wearing blouses based on a chosen theme. This display celebration not only promotes a sense of unity but also serves as a unique and creative expression of shared identity through clothing.

 

The introduction of these days aligns with the United Nations' approach to designating specific days to raise awareness, promote action, and celebrate achievements related to various global issues.

While international days often focus on serious matters, World SafeePay Day and World Blouse Day offer a mix of abstract and lively celebrations, catering to the diverse interests and aspects of modern life.

In a world where electronic transactions and cultural expressions are integral parts of daily living, these designated days would contribute to fostering awareness and appreciation for safe ePayments and the joy of wearing blouses.

 

Disclaimer: These are my thoughts only. The only Bliss is promoting the Joy of Safe ePayments. World Safe ePay Day  is a medium to experience the Joy of Safe ePayments.

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