**India’s Open Finance Revolution: A Rapid Growth in Account Aggregators (AAs)**

India’s open finance revolution has been gaining momentum over the past year, with significant growth in the number of accounts linked through Account Aggregators (AAs), the country’s version of open finance. As of December 2024, a whopping 120 million accounts have been linked, up from 39 million in December 2023. This rapid growth is a testament to the increasing awareness and adoption of AAs among Indian consumers.

**Key Findings: Lending Journey and Data Sharing**

• Respondents are more willing to share data for loan applications through AAs, with 20% saying they have applied for a loan in the last 18 months and 38% recalling being offered the possibility to share data.
• The proportion of respondents choosing to share data for loan applications through AAs doubled between 2023 and 2024.
• The top factors motivating respondents to share their banking data were higher loan amounts and better interest rates.

Figure 1 illustrates the uptake of AA for loans, showing that 20% of respondents who applied for a loan in the last 18 months recalled being offered the possibility to share data through AAs, and 21% actually used it.

Figure 2 highlights the motivation behind sharing data for better loan offers, with respondents primarily doing so to improve the conditions of their offer.

**Awareness of AAs: A Growing Trend**

Awareness of AAs has significantly improved since the first survey, with respondents more willing to share data because of the convenience and trust in the ecosystem.

• 30% of respondents who had not engaged with AAs in the loan process reported having heard of AA services before when they were described to them, up from 12% in 2023.
• Awareness of AAs differed by demographic, with respondents with at least upper secondary education being significantly more aware than those without.

Figure 3 illustrates the awareness of AAs, showing a growth in awareness among male and female respondents, as well as among respondents with at least upper secondary education.

**Willingness to Use AAs: A Key Driver of Adoption**

Most respondents would consider sharing data through AAs in exchange for better loan offers, with 71% saying they would consider sharing data in the future, up from 33% in 2023.

• The primary reasons for respondents’ willingness to share data included convenience and trust in the bank/lender.
• Those who were not willing to use AAs mentioned not understanding the process and not knowing anyone who had used it before.

Figure 4 illustrates the willingness to use AAs, showing an increase in respondents’ willingness to share data and consider using AAs for better loan offers.

**Personal Financial Management (PFM) Journey**

PFM has emerged as an important use case of consent-based data sharing, with over 25% of respondents reporting the use of consent-based processes to track their finances or have an aggregate view of their accounts.

69% of respondents who opted to share data through the consent-based process said they were motivated to use the process due to its convenience and ease of use.

Figure 5 illustrates the uptake of the consent-based process for PFM, showing that 25% of respondents reported using the process, with differences in demographics similar to those found in awareness of AAs.

**Experience: A Positive Experience for Users**

Respondents report a positive experience while using the AA process for both loans and PFM, with 85% finding the experience to be ‘good’ or ‘very good’.

86% of respondents who opted for the consent-based sharing process for PFM applications reported a positive experience overall, with over half of the respondents rating their experience with the consent-based sharing process as ‘good’, and 34% rating it as ‘very good’.

**Conclusion**

India’s open finance revolution is gaining momentum, with growing awareness and willingness to use AAs. To sustain this progress, strengthening trust through transparent communication and increasing awareness of the consent-based AA process will be key.

However, challenges such as gaps in awareness and adoption among women and individuals with limited formal education must be addressed through targeted interventions to make the ecosystem more inclusive.

Continuing to innovate, expanding use cases, and prioritizing inclusivity will be important to achieve the full potential of the ecosystem for financial inclusion.

**Key Takeaways:**

1. India’s open finance revolution is gaining momentum, with 120 million accounts linked through AAs as of December 2024.
2. Awareness of AAs has significantly improved since the first survey, with respondents more willing to share data because of the convenience and trust in the ecosystem.
3. Most respondents would consider sharing data through AAs in exchange for better loan offers, with 71% saying they would consider sharing data in the future.
4. PFM has emerged as an important use case of consent-based data sharing, with over 25% of respondents reporting the use of consent-based processes to track their finances or have an aggregate view of their accounts.
5. Respondents report a positive experience while using the AA process for both loans and PFM, with 85% finding the experience to be ‘good’ or ‘very good’.

This article highlights the rapid growth in India’s open finance revolution, with significant growth in the number of accounts linked through AAs and increasing awareness and adoption among Indian consumers. To sustain this progress, strengthening trust through transparent communication and increasing awareness of the consent-based AA process will be key.

**The Future of Open Finance in India:**

As India’s open finance revolution continues to gain momentum, it’s essential to prioritize inclusivity, innovation, and customer empowerment. By continuing to innovate, expanding use cases, and prioritizing inclusivity, the ecosystem can achieve the full potential of open finance for financial inclusion.

“India’s open finance revolution has the potential to transform financial inclusion by streamlining loan applications, simplifying PFM, and enabling lenders to assess creditworthiness using transactional data.”

This quote highlights the potential of open finance in India to transform financial inclusion.