So, how does AA solve this?
AA are RBI authorised applications that allows digital sharing of financial data to third parties with the user's consent.
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Some terminologies to understand:
Financial Information User (FIUs):
A third-party organisation that requests the user data. This could be an NBFC willing to give you a loan or a Mutual Fund broker requesting your data.
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Financial Information Provide (FIP):
Institutions that hold your data and are eligible to share them with an FIU via an AA. This could be your banks, GST network, Mutual fund brokers with whom you have a previous account.
AA's merely facilitate the data transfer.
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How does data-sharing work?
A FIP sends a consent request to the AA. The consent request contains the kind of financial information required along with date range, frequency, data type and data life (i.e) time period that the FIU has permission to use the data
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A user can choose to share the a/c's of their choice and accept the consent for the data to flow.
AA's are data blind by default (i.e) they do not have the ability to view, store or process the data. For AA's to access the user's data, they will have to raise a consent.
GIF
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This seamless way to data sharing is expected to open up many new use cases in Fintech. For example, uses cases like expense tracker and lending would become a feature integrated with other apps. The impact of AA is expected to be bigger than what UPI did to India.
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Here is an illustrated use case of performing lending on WhatsApp via AA that I wrote about for
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Designing workflows for data sharing requires ground-up thinking and at we worked on deriving designing principles for data sharing via AA.
futureofdatasharing.com
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Refer to the REBIT specs to understand the possibilities of AA and the consent artefact
api.rebit.org.in
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- The Collective for AA ecosystem conducts workshops, events on the topic. Follow them here
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Replying to
Do share your thoughts/queries about the AA ecosystem. Can help you get the appropriate answers :)
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And there are also AA memes:
Quote Tweet
At @d91labs, we had closed roundtable on consumer lending with few startups and this meme made it to our notes :D
Courtesy: @meLakshme
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