Open finance, which is the next step ahead of open banking, provides a range of features, making it simpler for fintech service creators to perform many things. One of those features is to create financial profiles for customers. This profile is significant, and its work is to ease organizations in doing a demographic study of their users, for example, consumption ability, income, credit score, etc. Therefore, account aggregation services come into the picture that simplifies creating this profile.
Account Aggregation and its Working Process
Account aggregation aims to provide optional data to create the financial outline or profile of fintech customers. This is completed by linking user accounts onto a single dashboard. Account aggregation services can also give helpful customer insights by reviewing trends in financial dealings and using smart technologies like machine learning.
Here is an analysis of the working process that takes place on the account aggregation interface:
- First, the user needs to sign into the account aggregation platform linked to particular financial services. After that, they would be requested for approval related to the use of financial details in their accounts.
- Second, users can connect to any accounts available on the dashboard. They can select a bank account or e-wallet record that they consider best shows their financial situation.
- Third, from the details given, the system would represent a study of financial information. Account aggregation technology can also help fintech firms assess these customers.
Different Outlines of Using Account Aggregation
Account aggregation can be used in different financial products. With the help of account aggregation, application developers can let users link their bank accounts or online wallets. Therefore, when there is an earning or expenditure, it will be registered automatically — users will not require to feed it manually. Furthermore, the account aggregation service provider like Anumati promptly integrates data changes in user accounts. So, when the latest transaction occurs, the details in the application will be revised in real-time.
In one more condition, by including a user’s financial profile, fintech services would be able to offer an impartial credit estimate. It is simpler to represent their true ability to reimburse from the customer side, so manual processes, for example, uploading of bank statements, can be removed. As a consequence, the process will be quicker and more effective.
Benefits of Account Aggregation Services
Fundamentally, for final customers, account aggregation is a platform for sharing digital financial information efficiently and linking financial accounts adhered in centralized storage. In the meantime, it is simpler for developers to get an image of prospective customers’ financial condition right away.
Strikingly, different infrastructure solutions in the open finance environment also help financial organizations. So, the use of account aggregation services gives many benefits to developers; for instance:
- A simple integration method with a simple Application Programming Interface.
- Developers can get end-to-end support, from the authentication process to payment.
- It fulfills the requirements of diverse scenarios and developing fintech business models.
- It is a cost and time-saving alternative for producing cutting-edge digital financial features.
So, if you need more details about account aggregation services and use cases, please stay connected with Anumati.