What Is an Account Aggregator and Why It Matters
Imagine seeing all your bank balances, loan accounts, and insurance details in one app — that’s what an Account Aggregator (AA) does. It’s a secure RBI-regulated framework that lets you share your financial data with lenders or advisors only when you give consent.
As explained in Rbi Account Aggregator Framework, RBI launched this network to help people, especially in smaller cities, access credit faster without endless paperwork. Instead of emailing bank statements, users can just approve a data-sharing request digitally. The idea is brilliant — but in practice, it still feels confusing for many first-time users.
By 2025, over 90 crore accounts were linked under the AA network through Sahamati, but actual usage remains limited. Many Indians downloaded AA apps, tried linking their banks, and stopped halfway due to login failures or unclear steps.
Insight: The Account Aggregator idea is powerful — but simplicity, not just security, will decide how many Indians truly use it.Common Gaps Tier-2 and Tier-3 Users Still Face
In metros, users link accounts easily. But in Tier-2 and Tier-3 cities — Jaipur, Indore, Guwahati, Surat — the experience is often patchy. People there face small yet critical barriers that break trust in digital finance.
According to Sahamati User Onboarding, the biggest challenge is consent confusion. Many users can’t tell what data they are sharing, with whom, or for how long. The consent screens often read like legal documents, not simple instructions.
Top usability pain points reported by users:
- Failed logins: Some banks’ net-banking credentials don’t work or time out mid-flow.
- Missing banks: Smaller cooperative or regional banks aren’t yet onboarded as FIPs.
- Unclear permissions: Users worry they’re “giving away all data” permanently.
- Slow app performance: Low-end phones and patchy internet make consent screens freeze.
- No local-language help: Most AA apps are still English-only, leaving rural users lost.
Even when everything works, users say the journey feels intimidating. The apps lack friendly design, visual cues, or local-language guidance — all crucial for financial confidence in smaller towns.
Tip: Simple design and regional language support can do more for digital inclusion than any policy tweak.Why Banks and Apps Don’t Always Sync Smoothly
Account Aggregators depend on perfect coordination between two entities — the data-holder bank (FIP) and the data-receiver app (FIU). If either side lags, the user experience breaks.
Experts writing in Data Consent Management note that some banks update their systems slowly, causing “pending consent” messages even after approval. Users often assume the app failed, but it’s actually a delay at the bank’s end.
Key reasons for sync failures:
- API inconsistencies: Banks still use mixed technical standards; some follow Sahamati’s latest spec, others don’t.
- Security overrides: Extra OTP or KYC layers confuse users who already gave consent.
- Delayed FIP onboarding: Only about 75 % of major banks are live; rural co-ops and RRBs are catching up.
- Limited support: When users face errors, help desks often redirect them between the AA app and the bank.
For tech-savvy users, these are minor glitches. But for a shop owner in Bhopal or a homemaker in Kochi, such errors feel like rejection by the system itself. One failed attempt, and trust collapses.
Insight: The Account Aggregator system is only as strong as the slowest bank API behind it.How India Can Fix the Last-Mile Experience
The RBI and Sahamati are aware of these challenges and are working to make the system smoother. As discussed in Digital Finance Inclusion India, the next phase of AA innovation focuses on usability — language options, offline onboarding, and visual consent dashboards.
Solutions emerging across the ecosystem:
- Localized UX: Translating screens into 10+ Indian languages and using icons to explain data categories.
- Offline verification: Assisted onboarding at bank branches and customer-service kiosks.
- Unified help center: One helpline for both banks and AAs, instead of passing users around.
- Transparent dashboards: Letting users view, pause, or delete existing consents easily.
Fintech startups are also experimenting with “AA-lite” models — smaller apps focused on single use cases like loan eligibility or mutual-fund tracking. These are easier for first-time users who don’t need the full suite of financial data immediately.
Tip: The best Account Aggregator app will be the one that feels invisible — fast, clear, and friendly enough that users forget it’s there.As India deepens digital credit access beyond metros, fixing these everyday gaps will decide how inclusive the fintech revolution truly becomes. For the system to work, it must speak every user’s language — literally and digitally.
Frequently Asked Questions
1. What is an Account Aggregator?
It’s an RBI-regulated platform that lets you share your financial data securely between banks, lenders, and advisors after your consent.
2. Why are some users facing errors while linking accounts?
Because some banks’ systems or APIs are not yet fully live on the AA network, leading to failed logins or delayed approvals.
3. Are Account Aggregator apps safe to use?
Yes. They follow RBI’s consent-based framework, where data is encrypted and shared only with your permission.
4. Can users revoke consent later?
Absolutely. You can pause or delete consent anytime from within your AA app dashboard.
5. How will RBI improve the user experience?
By pushing for language localization, faster bank onboarding, and better customer support under the Sahamati ecosystem.