Union Bank of India goes live on Account Aggregator Ecosystem

Union Bank of India goes live on Account Aggregator Ecosystem

Union Bank of India became the first public sector bank to go live on the Account Aggregator (AA) ecosystem. The AA framework ensures swift data sharing with the consent of the user and eliminates the need for physical documents. The framework facilitates sharing of financial information on a real-time basis between regulated entities. AAs are licensed by the Reserve Bank of India to enable the flow of data between Financial Information Providers (FIPs) and Financial Information Users (FIUs).

FIPs are institutions that hold customer data and FIUs are entities that consume data to offer better service, underwrite loans, and so on. Banks and other financial institutions must become FIPs to be able to also become users of data from other financial institutions.

An AA is data blind and only receives encrypted data which is decrypted only by the FIU. Union Bank of India has said that it will work both as an FIU and FIP to allow its customers to share data digitally on a real-time basis.

“Union Bank of India endeavours to work both as financial information provider and as FIU enabling its customers to share Data digitally on a real-time basis. UBI has implemented the technology stack as per the Reserve Bank Information Technology (ReBIT) guidelines,” the bank said.

What is an account aggregator?

An account aggregator is a dashboard of all your financial data. You can present this dashboard to any entity whose services you need. Say, you want a loan. Your bank will want to check your monthly salary, income-tax returns, account statements, and so on. All you need to do is to share your dashboard with the bank, instead of having to share attested printouts of various documents.

Account Aggregator (AA) Framework went live in September 2021

Major private sector banks like HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank are already live as FIPs and FIUs. There are 34 banks, non-banking financial companies (NBFCs) and other institutions so far live on AA, including Federal Bank, IDFC First Bank, and IndusInd Bank. Since it went live in September 2021, 332,000 customer accounts have been linked and over 310,000 consent requests have been fulfilled.

swati sharma

Swati Sharma writes for online publications, and newspapers covering business, technology, health, career, fitness, and sports. She holds a Master of Business Administration degree from one of the reputed universities. She loves to write about every aspect of technology and recent market trends.

Related Posts