What Is Data Portability in Finance?
Data portability gives you — the user — the right to access, move, and share your financial data securely between institutions. Under Data Portability Framework India, this means your data no longer stays locked within one bank or app; you can transfer it with consent to another service provider easily.
Think of it like switching your SIM card, but for finance. You can now share your loan history, insurance policies, or investment records with another lender or fintech — without filling endless forms. This principle lies at the heart of India’s ongoing fintech revolution, where users control who sees their data, how long, and for what purpose.
Globally, data portability stems from the idea of “data as a right” — pioneered by the EU’s GDPR. India has now localized that concept through the Digital Personal Data Protection Act (DPDP Act 2023) and RBI’s Account Aggregator (AA) framework.
Insight: Data portability means your financial data belongs to you — not your bank.How the Account Aggregator System Powers Data Portability
The backbone of financial data portability in India is the Account Aggregator (AA) system. Under Account Aggregator System, it acts as a digital bridge that allows you to share your financial information — like bank statements, insurance records, or mutual fund data — securely with another regulated entity.
Here’s how it works:
- Consent request: A fintech or lender asks for access to your data via a consent form displayed on the AA app.
- User authorization: You approve the request digitally, specifying which data to share and for how long.
- Secure transfer: The AA platform fetches your data from the Financial Information Providers (like banks or insurers) and shares it with the authorized Financial Information User (like a lender or wealth app).
- Revocation anytime: You can withdraw consent whenever you want — cutting off access immediately.
Major licensed AAs in India include CAMSFinServ, Perfios AA, and Finvu, which connect over 400 financial institutions. They don’t store your data; they simply facilitate encrypted, consent-based sharing between trusted entities.
Tip: Account Aggregators can’t see or store your data — they only transfer it safely with your explicit consent.Your Rights Under India’s New Data Framework
India’s Digital Personal Data Protection Act 2023 and RBI’s AA guidelines empower every user to manage financial data transparently. Under Financial Data Privacy Rules, you now have legal rights that protect both privacy and portability.
Key rights you hold include:
- Right to access: You can view and retrieve all financial data that a regulated institution holds about you.
- Right to correction: If data is inaccurate or outdated, you can request a correction or update directly through the platform.
- Right to data portability: You can move your financial data — such as bank history or credit reports — to another provider without friction.
- Right to revoke consent: You can stop sharing data anytime, even mid-transaction, using your AA dashboard.
- Right to transparency: Every data request must include details on duration, purpose, and authorized recipients.
These rights apply not just to banking, but across digital finance — insurance, mutual funds, pensions, and even GST data sharing for MSMEs. The RBI has positioned data portability as a key pillar of “Digital Public Infrastructure 2.0.”
For businesses and fintechs, this also brings responsibility: they must handle user data ethically, with explicit consent and no hidden profiling.
Insight: Data rights aren’t optional — they’re enforceable. Every fintech now needs user consent logs and audit trails.Why Data Portability Matters for Everyday Users
Data portability is not just a policy — it’s a personal finance tool that gives users control and opportunity. Under Open Finance Ecosystem, open and portable data can unlock faster credit, fairer pricing, and smarter personalization across India’s financial landscape.
How it helps you:
- Better credit access: By sharing verified bank data instantly, users with thin credit files can qualify for loans more easily.
- Simplified onboarding: You no longer need to upload PDF statements — your data moves automatically and securely.
- Personalized products: Fintechs can tailor offers like insurance premiums or savings plans based on your real financial behavior.
- Transparency and control: You can see which institutions access your data and revoke it anytime — all within one dashboard.
- MSME advantage: Small businesses can share cash-flow data directly with lenders to get faster working capital approvals.
According to NPCI and RBI’s 2025 estimates, over 2 billion data-sharing consents have already been processed through the AA network — proof that users are embracing secure, consent-based finance.
As India moves toward an open finance economy, data portability will define how trust and technology coexist. For users, it’s not just about privacy — it’s about financial empowerment.
Tip: The power to share your data safely can unlock access to better loans, savings, and opportunities.Frequently Asked Questions
1. What does data portability mean in finance?
It means you can securely share or move your financial data between regulated entities with your consent.
2. How does the Account Aggregator system work?
It lets users share data between banks, lenders, and fintechs via licensed intermediaries without manual uploads.
3. Can I revoke consent after sharing data?
Yes. You can withdraw consent anytime, and the data flow stops immediately through the AA dashboard.
4. Is my data stored by Account Aggregators?
No. They only facilitate encrypted transfer and don’t store or view your data at any point.
5. How does this benefit Indian users?
It gives you control, transparency, and faster access to customized financial products and credit.