CRED – Account Aggregrator

Recently I read a report which suggested that CRED is applying for account aggregator license to RBI. I have heard of payment aggregator license, banking license and NBFC license. However, never heard about the account aggregator. Let’s deep dive into it. I am late as et was launched a long time back.

Account aggregator (AA) is a data sharing platform where the banks and the NBFCs can exchange data between each other. The major aim of this platform is to share data so that it becomes easier for other interested banks to provide loans, thereby increasing credit penetration. For instance, you are sitting in a remote village and have a bank account in SBI. Through the AA, you can see what loans you can get from the registered entities. The SBI more of act as your credit score. It will share the financial transactions of your accounts. The bank will take your consent before sharing the data. It will make easier for other institutions to penetrate the under-penetrated market.

However, I think SBI is at a loss here if is not getting any commission. Because it has been doing all the hard work of KYC and maintaining other data of the customers. Whereas all the creamy income from the loan will go to another bank.