Account Aggregators -Putting Customers First


To kickstart economic growth in the post-pandemic era, simplification of business loans for SMEs turns out to be a crucial step. Longer timeframes for loan processing will put lenders at a competitive disadvantage. Additionally, they are also one of the leading factors that affect customer satisfaction. In this aspect, the use of reliable data analytics software solutions can help out.


What is Data or Account Aggregator?
Account Aggregator or an advanced data analytics platform serves to be a dedicated framework that has been designed to ensure the respective financial service providers to share data centric to applicants seamlessly across different stages of the credit-related decision-making process.  

The RBI recently started offering licenses to specialized NBFCs -referred to as AAs or Account Aggregators. The primary purpose of Account Aggregators is to gather consumer-centric financial data like bank statements, utility payments, frequency of online shopping, IT returns, and so more. This data is eventually made available to lenders for the evaluation of loan applications -only after receiving the consent from the respective borrowers -the SME owner.  


What are the Roles of Account Aggregators? 

Account aggregators are concerned with facilitating the free flow of ample credit in the given economy while offering lenders ample resources to improve the quality of decisions. It is a part of the core strategy of the Reserve Bank of India to bring the enormous volumes of NPA in the financial services domain under proper control. 

Account aggregators remain completely liable to share data only with the explicit permission of the borrower. Here are some more responsibilities for you to look out: 

  • Seamless, Real-time Data Sharing 

Account aggregators are given the responsibility of improving the accuracy as well as efficiency of ample credit scoring across diverse financial services -like personal finance applications, data analysis, personal finance management, wealth management, account reconciliation, and so more. 

A number of financial regulators have come up with a dedicated mechanism for ensuring cross-channel data sharing between the entities governing them. Due to this, there is the assurance of efficient regulatory compliance, minimal overheads, and effective resource utilization. 

  • Rapid Turnaround for Loan Applications 

Loan applicants are no longer required to spend hours in the processes of collecting and submitting financial documents to the respective lenders. Back-office, error-prone methods like screen scraping ensure the delivery of high-speed, secure consumer-centric data that is delivered directly to the lenders through account aggregators.  

It will make it easier for lenders to monitor the respective loan portfolios throughout the entire customer lifecycle. From the perspective of loss mitigation, it will be a major step-up from the conventional manual credit assessment mechanism.  

  • Improved Flow of Working Capital 

The SME domain is especially under immense stress since the advent of the global pandemic. The absence of proper credit history has served against them with respect to obtaining access to relevant business financing. Account Aggregators will assist lenders in predicting risks effectively while minimizing the overall exposure to poor debt.  

Most significantly, it will allow lenders to offer support to borrowers in both semi-urban and rural areas that will be vulnerable to exploitation by conventional money lenders. 

  • Privacy Protection 

Users of financial services applications might be discouraged from the potential of sharing the login credentials of their bank accounts to access in-app data analytics and reports. Account Aggregators serve as the ultimate solution to the given issue. It is because they offer customers the chance to select on the case-by-case basis while sharing sensitive financial data.


Conclusion 

There are several benefits of an advanced data analytics platform for lenders and other small-scale businesses. It can help in improving the overall customer experience while boosting revenues at the same time. 

Comments

Post a Comment

Popular posts from this blog

Financial data analysis: Why is it so important to you?

Image
The transformation process that brings technological advances, automation, and economic development, makes it difficult for businesses to remain and progress in their environment. The demands implicit in these changes make it essential that business units are prepared to manage their financial resources adequately so that their objectives make rational economic decisions. As we know, having a robust social presence and healthy financial background are both important for a business to grow in this market full of competition. What should an organization know? However, organizations are vulnerable to some unforeseen financial imbalance, characterized by insolvency and low liquidity, resulting from ineffective monetary policies or strategic, administrative, productive or financial performance deficiencies. Therefore, every company must know its economic and financial condition to identify existing problems, significant variations, and the factors that cause them. For this, it must have an ...
Read more

Simplified data solutions for complex business challenges.

Image
Some details, like Google Analytics and Google Advertising, fit together naturally. But, like email and customer relationship manager info, not all streams match perfectly. This is where the aggregation of data comes into play. What is the aggregation of data? To paint a better image of the marketing and business results, data aggregation is the way to gather data from multiple sources. In the simplest form, aggregation is collecting volumes of data from a given database and arranging it into a more consumable and detailed medium. To summarise data and draw observations based on data-rich results, data aggregation can be implemented at any size, from pivot tables to data lakes. Why is data aggregation significant? You take crucial steps towards achieving the best result that reaches your goals by aggregating and modelling your data. In most situations, after the cost of marketing and other expenses, this would be something such as return on investment or calculation to establish the ...
Read more

Data aggregation- One of the most beneficial tools in data analysis.

Image
For each triggered input and output, data is continually changing in our technologically advanced environment and getting more convoluted. Information is one of the most precious currencies of our time, but it is ultimately worthless without structure, segmentation, and comprehension. Data aggregation is how different types of data are gathered to represent in a summarised format. This process is mostly used in various sectors to perform other tasks according to their requirement. We all live in a world full of different people with different mindsets, preferences, choices, habits, etc. In such a diversified population, it gets tough to take out meaningful information, and that's where the data aggregation comes to the rescue. This is one of the crucial steps to perform any analysis. It helps the researchers to take out the insights with accuracy.  Big companies, governments, and many research institutes use this method to extract vital information for their research or surveys. D...
Read more