Lending companies have used the AA framework to facilitate loans worth Rs 42,300 crore from September 2021 to March 2024, with the cumulative average loan ticket size for the same period being Rs 1,00,237, as agreed, the AA ecosystem An industry alliance for the country.
The disbursements provided by AA in the second half of this financial year (FY25) stood at Rs 22,100 crore, indicating an increase from the total disbursed loans of Rs 21.2 lakh.
The average loan ticket size in this period was Rs 1,04,245 and is expected to decline “as we expect more cash flow based loans to MSMEs and unsecured loans to new credit customers,” the report noted.
As of August there are 163 financial information providers on the AA system, including banks, insurance firms, mutual funds, depository and pension funds and tax/GST.
The total number of successful consents on AA crossed 100 million in three years (as of 15 August).
“We have seen a consistent 15 percent monthly growth in the number of cumulative consent requests completed on the AA framework,” said BG Mahesh, CEO of Consent.
Each consent request represents the fact that more and more individuals are now in control of their data and are using it to access financial services, he said.
The reliability, convenience and security of data sharing through AA platforms has reduced transaction costs for lenders by approximately 20-25 per cent.
Lending companies have been the first few players to adopt the AA framework for their ongoing business.
According to Mahesh, authenticity of data on the AA framework, along with ease of use, leads to higher operational efficiency and higher reduction in cases of fraud through tampered documents.
The disbursements provided by AA in the second half of this financial year (FY25) stood at Rs 22,100 crore, indicating an increase from the total disbursed loans of Rs 21.2 lakh.
The average loan ticket size in this period was Rs 1,04,245 and is expected to decline “as we expect more cash flow based loans to MSMEs and unsecured loans to new credit customers,” the report noted.
As of August there are 163 financial information providers on the AA system, including banks, insurance firms, mutual funds, depository and pension funds and tax/GST.
The total number of successful consents on AA crossed 100 million in three years (as of 15 August).
“We have seen a consistent 15 percent monthly growth in the number of cumulative consent requests completed on the AA framework,” said BG Mahesh, CEO of Consent.
Each consent request represents the fact that more and more individuals are now in control of their data and are using it to access financial services, he said.
The reliability, convenience and security of data sharing through AA platforms has reduced transaction costs for lenders by approximately 20-25 per cent.
Lending companies have been the first few players to adopt the AA framework for their ongoing business.
According to Mahesh, authenticity of data on the AA framework, along with ease of use, leads to higher operational efficiency and higher reduction in cases of fraud through tampered documents.
