Open finance is a niche that offers various features and makes it effortless for fintech service developers to perform more tasks. One of those tasks is to create their clients’ financial profiles. This financial profile is important, and its work is to ease companies in running a demographic study of their users, like income, utilization capability, credit score, etc. So, there come Account Aggregation services, which make profile making easier.
Since the present open API service grows, fintech developers do not need to trouble creating features like Account Aggregation as they can avail of infrastructure solutions from trustworthy Open Finance developers. In place of saving more costs and resources, using these ready-to-use features lets organizations concentrate on their key business targets. The reason is that creating financial features—specifically those closely associated with users—is not simple, as they must fulfil particular norms from regulators.
Different Scenarios of Using Account Aggregation Services
Account Aggregation can be used on many financial products—for example, personal financial services in documenting user cash flows. With Account Aggregation, app developers can let users link their digital wallets or bank accounts. Therefore, when there is an earning or expenditure, it will be documented automatically — users will not require entering it manually right away. Furthermore, the Account Aggregation service model quickly integrates data changes in user accounts. Thus, the app's data will be revised in real time when there is the latest transaction.
In one more scenario, by having a user's financial profile, fintech loan-providing services will be capable of providing a fairer credit evaluation. It is simpler to establish their true ability to pay from the customer side, so manual processes, such as uploading bank invoices, can be removed. Consequently, the method will be quicker and more effective.
Benefits of Account Aggregation Services in Open Finance
Fundamentally, for final consumers, Account Aggregation is a platform to allocate online financial data simply and link financial accounts kept in an intrinsic container. In the meantime, it makes it simpler for developers to view prospective customers' financial situation quickly.
Fascinatingly, different infrastructure services in the Open Finance environment also help the financial niche. One must know the importance of account aggregation services. So, the use of account aggregation services by Open Finance providers has various benefits for developers; such as:
- There is an accessible integration method with an easy API.
- They can obtain support for end-to-end service, from authentication to payment.
- It fulfils the requirements of diverse scenarios and developing fintech business models.
- It is a cost-savvy and time-effective alternative for creating cutting-edge digital finance attributes.
Conclusion
As more users connect with the account aggregation ecosystem, more use cases of quick products and services would be produced for the customer. In the condition of small businesses searching for loans to increase their business standard, using account aggregation services will benefit them in the sense of competitiveness. Thus, the account aggregation framework can potentially bring a massive change in the financial outlook of India.
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