The advent of technology and the internet has promoted competition among companies to stay one step ahead of each other and embrace technology to disrupt the industry. Many domains are adopting emerging technologies to sustain and thrive in this cutthroat competition, and BFSI sectors are leading the pack. The BFSI sector is eagerly looking for technologies that will simplify how customers perform their financial transactions and provide a user-friendly and hassle-free experience to their customers. The account aggregator framework is one such technology that shows a promising future and has the potential to revolutionize the digital transaction experience of customers.
An account aggregator (AA) is an entity regulated by the RBI and has the NBFC-AA license. An AA enables its customers to digitally and securely access and share their financial information from the financial institution they are part of to any other financial institution. The AA network helps customers maintain the privacy of their vital financial information by allowing the account aggregator to securely share the information with financial institutions that need financial data to validate financial services like insurance, credits, debts, investments, etc. Account aggregators like Anumati act as consent managers for the customers and organize, protect and share their financial information based on their consent. AA can simplify how financial information is shared and help customers have more options when looking for financial solutions. Here are five benefits of the account aggregator framework to customers that you must know.
- One digital network for all
People once used to face many problems when securing a loan, getting insurance and investing money. There was no single, trusted way to determine the safe and trustworthy financial institutions and solutions that customers could trust. The lack of visibility in the sectors resulted in the customers having limited options when it came to getting the best financial solution. For example, due to the lack of financial and medical information about the customers, financial service providers like insurance companies couldn’t access critical data. Additionally, the customers didn’t have many options to choose from as the lack of data visibility limited their exposure to various financial service providers.
The account aggregators framework has changed, bringing the scattered financial information into a single system. The AA framework allows financial services providers to securely access the customer’s accurate financial data through an account aggregator like Anumati. They can securely use this data to determine and validate the eligibility of the customer’s application. The customers don’t have to go through the hectic process of presenting, gathering all the financial information and submitting it to the bank or insurance company. The AA shares all necessary financial data of customers to the financial institutes based on the customer’s consent.
- User-friendly dashboard
Financial processes like applying for a loan, getting insurance and investing money can be complicated. Despite the massive amount of financial knowledge on the internet and the ease of banking the technology offers, many people still find it challenging to use these software, platforms or apps. A major part of these financial processes is financial information collection. Customers had a lot of difficulties collecting and sharing information with financial institutes. But AA platforms offer a user-friendly dashboard that can help simplify the process. They can easily manage, access, secure, and share financial data with various app and software features. The customers don’t have to circle around to gather various banking documents. They can quickly share the information from the dashboard within a few minutes.
- User-consented data sharing
Many users are unaware that they have the highest authority on their financial data and have the right to protect it from illegitimate access. Modern customers understand the importance of the privacy of information. They make intelligent choices when it comes to sharing their financial information. So instead of sharing their information manually without any security, the account aggregator framework allows the customers to share their financial information securely. But they don’t have to deal with the financial information to share the data directly. The account aggregators work as consent managers who acquire consent from the customer and only then share the information with financial institutions like banks, credit agencies and insurance providers.
- Improved data security
Like every coin has two sides, technology also has a dark side. Due to the rising dependence on the internet to make financial transactions or acquire financial services, online financial frauds and scams are also rising. Every day there are new instances of digital finance fraud, data branches, ad identity thefts. In such a time, the AA framework offers improved data security to secure your financial data from identity theft, scams and frauds.
The consent-based data access method offered by the AA framework helps to limit and restrict access to critical financial data based on the customer’s consent. That means the AA cannot share the data with any Financial Information Users like banks, credit agencies or insurance providers unless the customer consents to share the data. This way, the data stays secure with the AA, and the customer can avoid their data being illegitimately shared with any third party without their consent.
- Exposure to more and better financial services
A central organization of financial data can ensure the chances of getting better financial solutions. Financial institutes need the customers’ financial data to determine their eligibility for certain financial services. They struggle to offer the right option if they lack financial information. It can lead to poor options such as loans with higher interest rates or insurance with minimum coverage. The AA helps avoid these problems by providing service providers with critical financial data. This information helps the service providers find the best solutions for customers based on their financial data. That means customers can get better financial solutions, such as insurance with higher coverage or a loan with lower interest rates.
The benefits of the account aggregator framework to customers are too prominent to ignore. AA is no less than a blessing for customers who plan to acquire financial services or products. With the rising dependence on technology, account aggregates like Anumati are the right choice to collect, access, and share your financial data securely.