After watching this presentation, I am quite confused as to how this is giving Indian users more control over their data. From a common-man’s perspective, this will only be pushing his costs high and making him lose his privacy even more. FIP’s life will be simplified but common-man primarily deals with FIU on a regular basis. In this model, FIU would need additional compliance, certification yada yada for Account Aggregator (AA), the cost for which will be shifted to the common-man in some form. FIUs are basically startups that AA will look to exploit/benefit from. FIP would be celebrating as it has to deal only with AA now relieving them from the main headache brought in by the diversity and scale of dealing with common-man and FIUs. On the privacy side, while AA does not see the specific transactions, it does have a good view of who is transacting with who and how many times.
Manish Anand it’s two step process. The information gathering in consensual manner allows companies/banks to give out loans to people who were previously unbanked segment of consumers. For the reference only 3.5 percent of Indians file for taxes, even less percentage people pay taxes. For the remaining 96% of Indians a loan is available only from loan sharks or chit funds. Neither are the desirable long term options. Govt has to strike a balance between completely private, as in US where three companies make all the rules about credit score, VS Govt regulated one, like in China where your credit score dips if you are found posting online something against “social good”. What is proposed is, a structure of sharing the data in consensual and secure manner. Govt acts as roads where People and companies choose destinations and mode of transportation. You wouldn’t want your car owned by govt or a private company. But you still like to use Uber.
@@ajeetajeet The question posed is not around the timely need to make banking available to the masses but around the need to have an AA in this structure! In your Uber analogy, FIU is already that "Uber" mode of convenience between the unbanked user and FIP so my issue is primarily with this artificial need for another middle-man like an AA in this structure that acts as nothing more than an unwanted big brother in it all.
@@manishanand2337ok lets see, you have a bank account and your GST returns are with a govt body. Loan approval process for you will be simplified and may happen in real time because AA can now provide a unified data from the bank and GSTN governing body. The loan providing institute will get access to your bank account data and GST data without moving a muscle.
Your data cannot be shared without your consent. Assume you are a SME and are looking for funds. Typically, you would collect all you bank acc details,assests,GST filling records,e-way bills generated by your company, tax filled, etc from different sources like your bank and other entities and apply for a loan.It takes around 2 to 3 weeks for your loan to get approved or request for other documents. Now FIPs are like your bank where you hold your account and other govt entities like income tax dept. Now FIUs are entities like the place where you are applying for a loan,etc. An Account aggregator is like Dunzo carrying your encrypted data with your consent. So the bank or finance entity you apply for loan (FIU) will use an account aggregator they would have tied with to fetch your information from all these entites. The AA will inform you that there is a request for your say income tax data and would ask for your consent and provide the transfer of data between FIPs and FIUs once you provide the consent. If we take UPI as an example, the role of AA is like your UPI app. It takes your information like transfer x amount to B but gets your consent through the PIN. This is similar. Your data is protected as it is encrypted all the way.This this mechanism, the turn around time for loans,etc will decrease to days. Hope this is clear.
Brilliant idea. 👏 congratulations
After watching this presentation, I am quite confused as to how this is giving Indian users more control over their data. From a common-man’s perspective, this will only be pushing his costs high and making him lose his privacy even more. FIP’s life will be simplified but common-man primarily deals with FIU on a regular basis. In this model, FIU would need additional compliance, certification yada yada for Account Aggregator (AA), the cost for which will be shifted to the common-man in some form. FIUs are basically startups that AA will look to exploit/benefit from. FIP would be celebrating as it has to deal only with AA now relieving them from the main headache brought in by the diversity and scale of dealing with common-man and FIUs. On the privacy side, while AA does not see the specific transactions, it does have a good view of who is transacting with who and how many times.
Manish Anand it’s two step process. The information gathering in consensual manner allows companies/banks to give out loans to people who were previously unbanked segment of consumers.
For the reference only 3.5 percent of Indians file for taxes, even less percentage people pay taxes.
For the remaining 96% of Indians a loan is available only from loan sharks or chit funds. Neither are the desirable long term options.
Govt has to strike a balance between completely private, as in US where three companies make all the rules about credit score, VS Govt regulated one, like in China where your credit score dips if you are found posting online something against “social good”.
What is proposed is, a structure of sharing the data in consensual and secure manner. Govt acts as roads where People and companies choose destinations and mode of transportation.
You wouldn’t want your car owned by govt or a private company. But you still like to use Uber.
@@ajeetajeet The question posed is not around the timely need to make banking available to the masses but around the need to have an AA in this structure! In your Uber analogy, FIU is already that "Uber" mode of convenience between the unbanked user and FIP so my issue is primarily with this artificial need for another middle-man like an AA in this structure that acts as nothing more than an unwanted big brother in it all.
Manish Anand AA not being govt agency nor necessarily a bank helps create an agency that actually cares about customer and can move fast.
@@manishanand2337ok lets see, you have a bank account and your GST returns are with a govt body. Loan approval process for you will be simplified and may happen in real time because AA can now provide a unified data from the bank and GSTN governing body.
The loan providing institute will get access to your bank account data and GST data without moving a muscle.
Your data cannot be shared without your consent. Assume you are a SME and are looking for funds. Typically, you would collect all you bank acc details,assests,GST filling records,e-way bills generated by your company, tax filled, etc from different sources like your bank and other entities and apply for a loan.It takes around 2 to 3 weeks for your loan to get approved or request for other documents. Now FIPs are like your bank where you hold your account and other govt entities like income tax dept. Now FIUs are entities like the place where you are applying for a loan,etc. An Account aggregator is like Dunzo carrying your encrypted data with your consent. So the bank or finance entity you apply for loan (FIU) will use an account aggregator they would have tied with to fetch your information from all these entites. The AA will inform you that there is a request for your say income tax data and would ask for your consent and provide the transfer of data between FIPs and FIUs once you provide the consent. If we take UPI as an example, the role of AA is like your UPI app. It takes your information like transfer x amount to B but gets your consent through the PIN. This is similar. Your data is protected as it is encrypted all the way.This this mechanism, the turn around time for loans,etc will decrease to days. Hope this is clear.