Think about the condition when you need a short-term loan that banks and different financial organisations are not able to provide because you do not have a credit history. Suppose a financial application that verifies your on-time bill payments and offers you a loan depending on that.
To resolve that, the government has introduced the financial account aggregation network, a new financial data allocation system that can change the country’s financial data allocation system in the sense of credit and investment.
In this post, we will explain about a financial account aggregation provider, the AA system, and how to select the best one.
How Does the Financial Account Aggregation System Work?
Account aggregators can allow users to make a number of financial activities paperless and reduce turnaround time. An easy authorization to the AA to exchange information from your bank accounts with an asset management company, for instance, can help in the finishing of a transaction such as a mutual fund investment.
The AA network lets senders send encoded transaction details or bank statements from savings, deposits, or current accounts, which can only be decoded by the recipient. Consumers will eventually have access to all financial data, including tax, pension, securities, and insurance data, all thanks to the AA framework.
Features of Account Aggregation Network
The AA follows an agreement between the requirement for more financial data allocation to enhance financial services and the safety of customer data security.
1. 100% Data Security
The sender encodes the data that Account Aggregators interact with, and only the receiver may decode it. Customers’ information may not be saved, processed, or traded by AAs; in place, it may be sent from one financial organisation to others with the consent of an individual.
2. Repetitive Data Access
At any time, a customer can take back consent to reveal their data. If a customer agrees to allocate data in a repetitive way over a time period, he can revoke that contract.
The customer will be depicted with the correct time for which the receiver organisation will have entry when they permit data allocation. The Reserve Bank of India has made rigid data security regulations on the Account Aggregators in addition to a customer redress system.
3. Cost-effective
At present, fintech companies are employing diverse vendors and API providers to check the bank statements of their clients. Since financial account aggregation is a completely digital standardised solution, complications are very less. Thus, the price to see a bank statement is inexpensive than what different organisations are reimbursing currently.
4. Real-time Service
In the present condition, companies use different processes to see the bank statements of their clients, and all the means are not direct and totally digital. So, just a part of bank statement requests are made accessible on the basis of real-time.
Financial aggregation works through an online API connection among FIP and FIU, simplified by Account aggregators. The complete work occurs digitally via standard APIs described under the Account Aggregator framework. So, the complete procedure is real-time and does not take much time.
5. Customer-friendly
AA architecture is influenced by UPI, which functions with OTP-based verification and automatic bank account connecting and fetching. The accomplishment of UPI is a testimony that AA is going to be customer-friendly and, thus, would provide a higher conversion rate.
Choosing the Right Financial Account Aggregation Provider
Selecting the best AA provider becomes simple when you search for the following features:
1. Cost
Normally, to go through bank statements, FIUs are required to pay access fees for Bank statements and permission management fees. Many businesses check a large part of bank statements on their customers, so the needs are going to be increased in volume. So, ensure the costs charged by your Account Aggregator are competitive.
Selecting Anumati, an account aggregator framework, offers you access to many live account aggregators. At a lower price and best-in-class service, your account aggregation experience is all set to become flawless.
2. Timelines for Integration
Select an aggregator who can make your integration timeliness much easier. The best aggregation provider has knowledge of onboarding a number of financial organisations under AA. It can offer exceptionally quick integration to companies or users eager to join the Account Aggregation network.
3. Support for Different Account Aggregators
Be sure your AA is providing the best solutions and your clients who earlier listed with other AAs are not being requested to re-list on your interface. It will hinder the consumer experience and decrease your conversion rates.
For example, you are working together with AA ‘x’ to run your loan business, and you have attained a customer who has before employed AA to allocate bank statements but with a different AA, say ‘y.’ So, ensure you are not requesting the customer to follow all the stages once more, so all you require is to make them sign in and give consent.
4. Value Added Services
Obtaining the complete bank statement in XML layout may not deal with your business situation. You require an overall technology stack to review those bank statements and produce advantageous insights. Therefore, ensure you get all the solutions in one place.
5. Dedicated Support
It is essential to have a dedicated support group to respond to all your queries. The best AA service provider’s extensive knowledge and professionalism let them fulfil your requirements and work as a powerful base support for any problem or help you may need.
Final Words
Selecting the best financial account aggregation provider is a significant decision that can essentially affect your financial management performance and complete experience. By keeping all the data in a single place and providing one digital framework to swap it in real-time, Account Aggregators Anumati provides you with the power to go through financial data fast on your customers.
