Account aggregator expands credit access for first-time borrowers and smaller cities: Report

A joint report by CRIF Credit Information Services and Sahamati found that AA-enabled lending is associated with greater participation by new-to-credit borrowers and customers in smaller cities, offering a potential route to more inclusive credit growth.

On October 7, the RBI announced plans to enable interoperability between Account Aggregators by December 2026, so users can share financial data through a single AA rather than onboarding separately across platforms. An Account Aggregator (AA) is an RBI-regulated system in India that allows individuals and businesses to securely share their financial datasuch as bank statements, deposits and investmentswith lenders or other financial institutions only with their consent.

The report, Consent to Credit: The Account Aggregator Impact Report, highlights the frameworks role in serving people whose financial activity may be visible in bank accounts but not adequately captured by traditional credit bureau records. By enabling customers to share financial information digitally with their explicit consent, AA allows lenders to assess cash flows and income patterns that paper-based processes may overlook.

Among the reports findings, AA-enabled lender cohorts recorded a 28.5 per cent share of new-to-credit borrowers in mid-ticket business loans of Rs 10 lakh to Rs 25 lakh during the 12 months ending June 2026, compared with 8.6 per cent among non-AA cohorts. In personal loans, the corresponding shares were 9 per cent and 3.8 per cent. The report also finds that, in several loan categories, AA-enabled lending accounted for a higher share of originations from Tier-3 and smaller locations.

The frameworks potential extends to women borrowers and informal-sector workers, many of whom may have limited access to conventional documentation. At the local-market level, greater exposure to the expanding AA ecosystem was associated with higher lending to women, new-to-credit customers and borrowers in Tier-3-and-beyond locations, particularly across retail credit products.

However, wider access must not be confused with uniform outcomes. The report notes that the higher share of women borrowers in certain AA-enabled loan categories cannot necessarily be attributed entirely to the framework. It also identifies differences in repayment performance across products, underlining the need for careful underwriting.

The next stage of financial inclusion will depend on expanding the range of usable financial information, improving participation across institutions and making digital consent journeys accessible to customers with limited digital familiarity. Greater integration of business-related data could be especially important for small enterprises whose income is not fully reflected in conventional records.

For Indias credit market, the opportunity is to make financial activity more visible to lenders without compromising borrower choice. Sustained progress will depend on responsible lending, clear consent and evidence that broader access can translate into durable financial inclusion. (ANI)