Tally Solutions' Account Aggregator Subsidiary Receives RBI Approval

Tally Solutions has introduced its subsidiary, Tally Account Aggregator Services Pvt. Ltd., along with its product TallyEdge. TallyEdge collaborates with Banks and NBFCs, known as Financial Information Users (FIUs) and Financial Information Providers (FIPs), to simplify access to lending and various financial services for millions of Indians.

India is home to over 64 million MSMEs, and a significant portion lacks access to formal lending and financial services due to absent credit history and weak financial backgrounds. Seeking such services involves tedious paperwork and privacy concerns. Only 14% of these businesses have credit access, indicating a critical need for improved formal credit, wealth management, and personal finance solutions. TallyEdge addresses this gap, enabling users to consolidate and securely share their financial data from multiple sources in real-time with their consent, streamlining the process for businesses and individuals alike.

TallyEdge, functioning under an NBFC-AA license, offers fully secure digital data access and consent-based sharing with financial institutions. Its robust end-to-end encryption and digital signatures eradicate vulnerabilities, ensuring utmost data safety. Users maintain absolute control over their data flow, having the ability to approve, reject, pause, or revoke sharing requests based on their preferences. This empowerment guarantees a secure, personalized experience, enhancing user confidence in managing their financial information. TallyEdge stands as a reliable solution, providing both security and autonomy in data sharing, meeting the diverse needs and concerns of users in the digital financial landscape.

Commenting on this announcement, Mr. Tejas Goenka, Managing Director, of Tally Solutions, said “At Tally, we have been working on our Account Aggregator solution TallyEdge, with the underlying premise of making users the master of their data. We have taken special care to ensure that the user’s data is 100% safe with TallyEdge, with no capability for us to read or store the user’s data at any point. We are also collaborating with FIUs, in discovering new customer segments, product experiences, and financial products for MSMEs and Individuals.

Tally’s leadership position within the MSME ecosystem in the Business Management software category is a testament to the trust and brand loyalty of MSMEs. With the growing AA network, Tally’s foray is expected to play a critical role in building and expanding this ecosystem further.”

Despite the transformative impact of FinTech on the lending sector, small enterprises still struggle to access finance. Increasing NPAs and challenges in verifying loan seekers' financial health have deterred banks from supporting small businesses. The Account Aggregator ecosystem is anticipated to bridge these gaps, fostering synergy and addressing these challenges in the lending landscape.

TallyEdge intends to collaborate closely with Banks, NBFCs, GSTN, insurance firms, payment banks, and other entities. This strategic partnership aims to enable seamless consolidation and secure sharing of financial data for Indian MSMEs and individuals. Through consent-based interactions, the process becomes not only simple but also intelligent and highly secure, ensuring effortless communication between users and financial institutions.