Simplifying Financial Access in Nepal with Account Aggregators and Blockchain

With the theme 'Banking Tomorrow and Beyond', Banker’s Meetup 2025 brought together industry experts and innovators to envision the future of the banking sector. The event featured a series of insightful presentations, among which, Fonepay shared what banking might look like in days to come with Account Aggregator frameworks and Blockchain technology as a way to enhance and simplify financial access in Nepal.

In Nepal, accessing financial services remains a tedious and time-consuming process. Whether it is applying for a loan or opening a bank account, individuals must navigate a web of paper-based formalities - submitting salary slips, tax returns, and identity documents. For many, especially informal workers and micro, small, and medium enterprises (MSMEs), this process is a barrier to financial inclusion. A large portion of the population lacks formal credit histories or collateral, while financial data remains fragmented across multiple institutions.

Despite a rise in digital transactions, much of this financial data is underutilized due to manual processes and privacy concerns. The need for a secure, streamlined, and inclusive financial infrastructure has never been greater.

Enter the Account Aggregator (AA) Framework

An Account Aggregator is a revolutionary digital platform that acts as a secure, real-time bridge, enabling individuals and businesses to consolidate and share their financial data—from banks, insurance providers, investment firms, and other financial institutions—with their explicit consent. By unifying digital footprints across multiple sources, the AA framework reduces dependency on physical paperwork, enhances data transparency, and accelerates access to financial services such as loans, insurance, and wealth management, all while prioritizing user control and data privacy.

AAs empower users with full control over their data—deciding what to share, with whom, and for how long. Importantly, they do not store any data themselves. With end-to-end encryption and consent-driven sharing, AAs ensure high levels of security and privacy.

Use Cases Across the Financial Ecosystem

1. Banks and Financial Institutions: AAs provide banks with real-time, consent-based access to consolidated financial data, enhancing credit assessment, loan processing, and fraud detection. This not only improves operational efficiency but also enables the design of personalized financial products for underserved segments.
2. KYC Compliance: AAs simplify the Know Your Customer (KYC) process by enabling real-time verification using consolidated financial data. This reduces the burden of multiple document submissions and significantly speeds up account opening and onboarding.
3. Credit Companies: Credit providers benefit from faster and more accurate loan approvals, using real-time insights into borrowers’ cash flows. This opens up formal credit to MSMEs and gig workers who often lack traditional credit scores.
4. Personal Finance & Wealth Advisory: By aggregating financial data from diverse accounts, AAs offer individuals and advisors a holistic view of their financial health. This enables smarter budgeting, investment planning, and tailored financial advice.
5. Customers: An Account Aggregator simplifies financial management by providing users with a centralized, secure platform to access all their financial data in one place. With just a click, users can view their bank accounts, investments, loans, and insurance policies, making it easier to track spending, plan budgets, and make informed decisions. It ensures secure data sharing with consent, speeds up loan approvals, and offers personalized insights, all while giving users full control over their financial information.

Enhancing Trust with Blockchain

Integrating Hyperledger Fabric, a permissioned blockchain, ensures transparency and trust in the AA ecosystem. Every consent and transaction is recorded on an immutable ledger, enhancing data integrity and auditability. Smart contracts automate business logic, while private channels protect sensitive user data. This decentralized, tamper-proof infrastructure is ideal for secure and compliant financial data sharing.

The synergy between Account Aggregators and blockchain technology promises a transformative shift in Nepal’s financial landscape. By enabling secure, real-time, and consent-based data sharing, this framework not only simplifies access to financial services but also promotes financial inclusion, especially for those previously left out of the formal economy.