India's big banks have taken the open banking plunge, launching an Account Aggregator (AA) data sharing system.
HDFC, Kotak, ICICI, Axis, SBI, IndusInd, IDFC and Federal have launched the system, which gives their customers the option to share their financial data with other firms through an API-based repository.
Years in the making, AA will be open to firms that secure licenses from the Reserve Bank of India. The system connects account aggregators, financial information providers and financial information users.
Rajeshwar Rao, deputy governor, RBI, says: "The Account Aggregator model will help in the democratisation of data and shift the power over data accessibility and usage to owners of data rather than the holders of data."
The RBI hopes that by increasing access to data it can boost financial inclusion, particularly by making it easier for people and small businesses to secure loans in a market with a patchy credit rating system.