Is your lending platform Account Aggregator ready?
Account Aggregators are here to transform the digital lending sector as they bring absolute control for borrowers along with great convenience for lenders making it a win-win for both. Regulated and mandated by RBI, the Account Aggregation framework can be best defined as a platform collecting user’s personal financial data from Financial Information Providers (FIP) with consent and sharing it with the Financial Information Users (FIU) such as lenders making the process much faster while ensuring data is secured.
What does this mean for a User?
User-Controlled Data Sharing:
AA framework gives the users control of their data like nothing ever has. Known as an interoperable data-blind consent manager, this platform cannot read, use or sell consumer data which is encrypted by the user with digital signatures. The AA simply collects data and transfers it to FIUs who can decrypt and use the data as consented for. It equips the user to share data selectively, for a stipulated duration of time, and even withdraw the data once shared; giving the user complete visibility of when and where the data is being shared.
Simplifying Wealth Management:
Calling the AA system as your one-stop solution for managing multifarious financial assets and transactions wouldn’t be wrong. The user may consolidate all financial data across various applications to create a single touch-point through an account aggregator empowering the user in more ways than one. Along with the ease of sharing data with the service provider, the user gets a wholesome look at the portfolio and is able to closely monitor expenditure thus making wealth management simpler, faster and more secure. Consolidated data showing cash inflows through various sources can also help enhance a user’s credit scoring and underwriting.
Accelerating Lending Operations:
A consolidated system will eventually improve the efficiency of every financial operation. Registering on an AA platform via a financial entity eliminates a lot of time-consuming processes like queuing outside the bank, KYC, stamping documents et al. The lending agency can now quickly pull out borrowers’ accurate financial history, follow due diligence digitally and expedite the lending process.
Data on Fingertips:
The best part about getting on the AA framework? Consent, data-tracking, or connecting to the agency of your choice can now be managed through a simple app on the phone! Finally, feel in control? Yes, you are.
Read More: https://www.novopaybanking.com/blog/is-your-lending-platform-account-aggregator-ready