Account Aggregator Framework

Context :

Banks are adopting Account Aggregator Framework on Data 

Extract :

Ø  Account aggregators are responsible for transferring, but not storing, client data. An AA ecosystem, as envisaged by the Reserve Bank of India (RBI), would be a platform for financial services companies to reach out to the consumer to seek consent before using their personal data to optimise their product offerings.

Ø  “As we speak we are launching a pilot with our employees before we launch it for our customers. We see many use cases for seamlessly integrating personal finance journeys. We want to see how employees across entities are using it so we can fine-tune the experience,” Kotak Mahindra Bank chief digital officer Deepak Sharma said.

Ø  The company has designed a testing app for the pilot, where employees can generate an AA ID and view their portfolio across all its entities. It sees use cases in lending including to small and medium enterprises (SMEs), personal financial management and underwriting.

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It is only a matter of time before this ACCOUNT  AGGREGATOR  framework, morphs into a Mobile Wallet  [ AutoInvestAlgo  ?  ], as described in my following blog :

 A Matter of Time    / 03 Jan 2017

Extract :

So, just wait to find out which Mobile Wallet comes up with following " innovations " first :

*  All bank accounts of a person ( in different banks ) become inter- operable / fungible ,

   through seamless interlinking , using Aadhar / UPI Interface in a Mobile Wallet

   No need to " select " a particular bank name

  

*  All transactions using a Mobile Wallet, automatically entered in BLOCK-CHAIN database

   commonly shared by ALL banks

*  Wallet based algorithm will  move funds across different bank accounts  for best yield ,

   constantly searching for best interest rates offered by banks on Fixed Deposits

   This will happen automatically , much like algorithm-based sharetrading , taking

   advantage of price differences in two bourses located 300 km apart ( in one thousandths

   of a second ! )

{ Above link added on 19 May 2020  }

   No rocket science here considering availability of " best price " apps for thousands of

   goods and services

  And since computing power of mobiles are doubling every 18 months ( Moore's Law ),

  nothing will stop algo-trading through a Mobile Wallet , as well ! ( Demat A/C on Wallet ? )

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27  March  2020

hcp@RecruitGuru.com