Advertising agencies in the form of account aggregators can play a responsible role. They need to reinvent themselves and believe that they can play the role of account aggregators and not leave it to the technology service providers to do that job, writes our columnist
Subscription revenues are growing but in a market like India, ad funded content will remain salient for some time to come. It is advertising that will continue to fund the publishing ecosystem. Image: Shutterstock
As a consumer, our financial information is extremely valuable. Secure exchange of our financial data creates better value for us across our banking, financial and insurance needs. A very strong ecosystem is emerging now to manage this value exchange and some of the biggest and the best innovations in India are coming out of this ecosystem.
The main participants of this ecosystem are all the Financial Information Providers (500+ FIPs) like Private Sector Banks, Public Sector Banks, Foreign Banks, Health Insurers, HFC, NBFCs etc., and the Financial Information User (FIUs), technology service providers (50+ TSPs) and account aggregators (13+ AAs). Typically most of the FIPs on the supply side are FIUs as well on the demand side, making this a tightly closed loop ecosystem. All the members of this 1000+ strong and growing FinTech ecosystem are regulated by the Reserve Bank of India under a clear operating license.
In the FinTech ecosystem, account aggregators have played a critical role in connecting the demand side with the supply side without any friction. An average consumer need not have to travel hundreds of kilometres from their hometown to the nearest city just to give their collateral papers or bank statement to lending banks.
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Download the AA App and share your data directly with the lending bank. Skip sharing personal and sensitive information with intermediaries and agents. Sahmati, through a harmonious adoption of an account aggregator framework, enables this value exchange. When a customer gives consent to an account aggregator (AA), it collects your digital financial data from one or more of your accounts, and delivers it to the financial institution that is providing services like loan or insurance to you.