Private sector IndusInd Bank said it has gone live as a Financial Information Provider (FIP) under the new Account Aggregator Framework of the Reserve Bank of India (RBI).
“As an ‘FIP’, IndusInd Bank will facilitate customers to share their financial information with Financial Information Users on the Account Aggregator Ecosystem in a secure and seamless manner, basis exclusive consent from the customer,” the lender said in a statement, adding that once the other financial institutions go live on the AA framework, it will eliminate the need for collecting and submitting physical documents for getting loans or accessing other financial products and services.
The RBI first announced the Account Aggregator (AA) framework via a Master Directive in June 2016. It will enable customers to avail benefits like viewing statements of their accounts, track deposits, plan investments and avail credit cards on a single window.
Soumitra Sen, Head – Consumer Banking, IndusInd Bank said:
“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 and service from banks and other participating players. We are happy to collaborate with the DigiSahamati Foundation”
BG Mahesh, Co-Founder of DigiSahamati Foundation, a Collective of the Account Aggregator Ecosystem commented:
“As an early mover in this space, they (IndusInd Bank) 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.
Listing the benefits of the AA framework for customers, IndusInd Bank said it would eliminate the existing process of physical document submission, enable individuals and SME customers to share their financial information digitally with regulated financial institutions like banks, and NBFCs among others, within a secure framework and also allow customers to have better control on financial information shared by providing their explicit consent before sharing the information.