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 the control of their data like nothing ever has. Known as an interoperable data-blind consent manager, this digital lending platform cannot read, use or sell consumer data which is encrypted by the user with digital signatures. The AA simply collects data and transfers 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 borrower’s 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 be now be managed through a simple app on the phone! Finally feel in control? Yes you are.

Why is an Account Aggregator Important for NBFCs?

Access and Reach:

All major public and private banks and financial entities are already on AA where the number of accounts has already crossed a billion. This provides a much needed flexibility of connecting to any FIU of choice for the customer who has registered on the AA platform. 

Re-inventing Lending Operations:

Account Aggregators, regulated by RBI can give a new lease of life to lending sector by democratizing credit lending in small towns and rural sectors of the country thus strengthening access and widening market to include a large pocket of credit borrowers who often fail to produce financial records or maintain a portfolio. This can also lead to creating unique products and services to meet the customer’s requirements such as small-sized loans, micro-insurance or even personal finance management.

Parallel Data Universe:

AA framework is said to be looking like the future of data universe as it does not remain consigned to finance sector. The framework can also be used as effectively to access health data providing a fresh opportunity to health sector. We shouldn’t be surprised if telecom and education sector are following in quick footsteps.

Trustt’s Digital Lending platform is equipped to serve its customers all benefits of an AA framework helping lenders create a seamless experience for borrowers while managing data securely at a much lower cost.

Novopay (a Khosla labs venture) was founded by Srikanth Nadhamuni (Founder - CTO Aadhaar) and Gautam Bandyopadhyay (a FinTech industry veteran and former Head of Finacle Innovation Hub at Infosys) . Backed by Vinod Khosla, the legendary silicon-valley venture capitalist, Novopay has built one of the most resilient, scalable banking platforms in the industry.

So much so that our first 2 customers were the largest private banks in India and are enabling 7000+ branches, 60 million transactions and 17,000 internal users with our platform.

To know more about the banking platform, reach out to contact@novopay.in