This makes CRIF Connect the seventh licensed AA operating in India, alongside FinSec AA Solutions, Yodlee Finsoft, CAMSFinServe, NESL Asset Data, Cookiejar Technologies, and Perfios Account Aggregation Services. The AA network was introduced as a financial data-sharing system to facilitate credit and investment, giving consumers access and control over their financial records and expanding the potential pool of users for financial sector entities and fintech companies.
Through the CRIF Connect App, users can view their financial data in one place and choose which information to share with financial institutions. Users can make changes to their consent at any time, including denying or revoking it altogether. The AA framework seeks to put the customer at the centre of the ecosystem, to give them control over reportedly secured and hassle-free data sharing. According to the Senior Director of CRIF India and South Asia, the AA framework is a ‘game-changer’ for increasing digital adoption, financial inclusion, and providing financial services with higher operational efficiencies.
As of 12 December 2022, 94 financial institutions were onboarded on the AA platform as Financial Information Users (FIU), while 26 financial institutions were onboarded as Financial Information Providers (FIP). Among these were 12 public sector banks, 10 private banks, one small finance bank, and three life insurance companies. The consent-based information collected by AAs for MSME or other business users relates to their bank or NBFC (non-bank financial company) deposits, SIPs (systematic investment plans), government securities, equity shares, bonds, mutual funds, insurance policies, exchange-traded funds (ETFs), debentures, and more.
In November 2022, the RBI included the Goods and Services Tax Network (GSTN) as the latest FIP (financial information provider) to enable information on GST Returns, viz. form GSTR-1 and GSTR-3B, to be available. Other FIPs include banks, NBFCs, asset management companies, depositories, insurance companies, and pension funds, all of which provide related information to AAs.
CRIF Connect's entry into the AA space is expected to further expand the reach of financial services and provide consumers with greater access and control over their financial records.
Recently, CRIF and iwoca partnered to provide small and medium-sized businesses (SMEs) in the UK with instant lending powered by Open Banking, in an effort to assist those struggling with the current cost of living crisis.
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