Mumbai, Sep 16 (SocialNews.XYZ) In a remarkable achievement of the country’s fintech ecosystem, the Account Aggregator (AA) framework is now being used to facilitate loan disbursement worth about Rs 4,000 crore a month, a report showed on Monday.
The lending firms have used the AA framework to facilitate loans worth Rs 42,300 crore since September 2021 till March 2024, with cumulative average loan ticket size at Rs 1,00,237 for the same period, according to Sahamati, an industry alliance for the AA ecosystem in the country.
The growth surge is indicated by total loans disbursed at 21.2 lakh with Rs 22,100 crore in disbursements facilitated by AAs in the second half of this fiscal (FY25).
Average loan ticket size in this period stood at Rs 1,04,245 and is expected to reduce “as we expect more cash- flow based lending to MSMEs and unsecured loans to new to credit customers,” the report mentioned.
There are 163 financial information providers on the AA system as of August, which includes banks, insurance firms, mutual funds, depositories and pension funds and tax/GST.
The total number of successful consents on the AA crossed 100 million in three years (as of August 15).
“We have seen a steady 15 per cent monthly growth on the number of cumulative consent requests being fulfilled on the AA framework,” said BG Mahesh, CEO, Sahamati.
Each consent request represents the fact that more and more individuals are now in control of their data and are using it for accessing financial services, he added.
The reliability, convenience and security of data sharing through AA platforms have brought down the transaction costs for the lenders by nearly 20-25 per cent.
Lending firms have been the first few players who have adopted the AA framework for their on-going business.
According to Mahesh, the authenticity of data on AA framework, along with the ease of use, results in higher operational efficiencies and a high reduction in fraud cases through tampered documentations.
Source: IANS
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