Tally Solutions launches account aggregator services to facilitate bank credit to MSMEs

Account Aggregator for MSMEs: The business management software company Tally Solutions, on Friday, announced the launch of its subsidiary Tally Account Aggregator Services, with its product TallyEdge. The new product will work in conjunction with banks and NBFCs or Financial Information Users (FIUs), and help with consent-based data sharing for small businesses.

The platform will allow businesses to consolidate their financial information from various entities in one place, with the option of viewing and sharing the information safely. The platform operates under the framework of NBFC-AA, which ensures digital data access, and consent-based data sharing with the financial intermediaries.

Also read: ‘Rapid adoption of Account Aggregator network signals new era in financial inclusion, especially for MSMEs’

Following the central bank’s directions back in 2016 on AAs, revised in 2021, the AA network was introduced as a financial data-sharing system to facilitate credit and investment, giving consumers access and control over their financial records and expanding the potential pool of users for financial sector entities and fintech companies.

According to the RBI, account aggregators (AAs) are a new class of non-banking financial companies (NBFCs) that offers account aggregation services — retrieving or collecting information of its customer about their financial assets and consolidating, organizing, presenting it to the customer (for instance a bank) or any other person as per the instructions of the customer — in exchange for a fee. The service could be for purposes such as credit to MSMEs.

Also read: Why a targeted training in tech and finance for MSMEs is critical

The platform plans to partner with Banks, NBFCs, GSTN, insurance companies, payment banks, and others to ensure effortless consolidation and consensual sharing of financial information of small businesses with financial institutions.

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