Govt offers tech aid to account aggregators facing fraud deluge
cyber criminals are targeting almost every facet of the fintech industry to gain access to critical customer data.
Non-banking finance companies — account aggregators (NBFC-AAs), which has just started to take off, has now become the latest target of fraudsters.
Two people in the know said the Indian Cyber Crime Coordination Centre (I4C) recently met top executives of some of the major NBFC-AAs to address issues of cyber fraud attacks and ways to tackle them.
Consequently, the AA participants decided to shut access to certain features like balance enquiry, and customer profile, which they were offering previously on their consumer-facing applications in a bid to protect customer data.
NBFC-AAs are a newly regulated sector directly under the purview of the Reserve Bank of India. They are tasked with managing a consent-based architecture for free flow of financial data between multiple financial services entities.
Consumers seeking credit from a particular bank can give consent for fetching their financial statements from a second bank, which can help in better underwriting. With the help of the AA ecosystem, consumers do not need to depend solely on their banks to get the best services and can use any financial services provider.
The RBI has licenced 16 companies to offer account aggregation as a service. Perfios Account Aggregation Services, Finvu, Cams Finserv and NeSL Asset Data Ltd are some of the major AA licence holders. PhonePe, DigiO and Setu are other prominent fintechs which recently received AA
