Thanks for sharing. My reading of this is actually the opposite. The Account Aggregator (AA) system that Mr. Nilekani talks about seems to aim at removing information asymmetry and create a level playing field.
Paytm has been the beneficiary of this information asymmetry, having near exclusive access to transaction data of millions of users and merchants. This is why the company has been making good progress on lending.
When such data is available to everyone, why would financial institutions lend through Paytm? At that time, analytical abilities may be the edge remaining with Paytm, not data. It wouldn’t be difficult to attain this edge for the competition.
As with ONDC, this AA is also aimed at removing monopolies. As ONDC is for Amazon/Flipkart/Swiggy/Zomato, maybe AA is for Paytm/Phonepe. We have to wait and watch.
Disclosure: Invested
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