India’s account aggregator framework crosses 100 million consents in three years

In India, Account Aggregators act as consent managers independent of Financial Information Users (FIUs), that enable individuals and businesses to share their financial data with their consent and manage their consents at one place.

The account aggregator (AA) framework of India crossed 100 million consents in three years, Sahamati, the industry alliance for the AA ecosystem, said in a report.

It added that around 80-90 million people or around 8 percent of the adult population are using AA in India. “In the financial year 2023-24, AA consents grew by 1059 percent, making India’s AA ecosystem, the fastest growing open finance ecosystem in the world,” Sahamati said in a report.

Additionally, Sahamati said that the current usage and penetration of open finance and AA framework is expected to achieve a penetration of 25 percent of the Indian population by the end of December 2025.

In India, account aggregators act as consent managers independent of Financial Information Users (FIUs), that enable individuals and businesses to share their financial data with their consent and manage their consents at one place.

BG Mahesh, Chief Executive Officer, Sahamati, said that growth in consent requests from 5.5 million in FY 2022-23 to 63.75 million in FY 2023-24 from customers indicate a higher degree of comfort and acceptance of the system.

Mahesh added that the usage of AA framework has expanded from the basic use case of underwriting loans to personal finance management, portfolio management, assessing early warning signals and monitoring of loan accounts, loan collections, issuance of insurance policies, opening of demat accounts and investment advisory.