Account Aggregators: Busting A Few Myths For Financial Institutions
Updated on Apr 21, 2023
The Account Aggregator ecosystem is an interoperable network of Financial Information Providers (FIPs), Financial Information Users (FIUs), and Account Aggregators (AA)s.
As we collaborate with FIPs and FIUs, we’ve uncovered a few common myths, and wanted to demystify them for everyone’s benefit.
Myth #1: As an FIP, I will lose customers hand over fist if I part with data through AAs
Reality check
- Except for very specific institutions such as GSTN, DPs and RTAs, every FIP is also an FIU. The AA ecosystem works on a principle of reciprocity, and ensures that every institution derives value from participating.
- FIPs are reassured that only legitimate FIUs are seeking data, and customer consents to sharing her data
- FIUs are reassured that the data is fetched with customer consent, is coming untampered straight from the FIP’s systems, and is instantly machine readable
- The data principal has a safe, easy way to share her data for her benefit only with entities she wants to.
Myth #2: I’m an FIP; as the AA ecosystem scales, I will face additional pressure on my core banking systems
Reality check
- Over 80% of the current use cases are in retail and SME lending where T-1 data fetched from an FIP’s data warehouse is sufficient, and there is no additional load on the CBS.
- In specific use cases where real-time data is required, the FIU is bound by fair-use guidelines that limit the frequency and nature of data fetch and thus protects the FIP from overloading their systems
Myth #3: AAs are only for the digitally savvy consumer.
Reality check:
The AA solution is designed to fit into any use case and channel. At Anumati we have deployed working solutions for “assisted journeys” where authorised field personnel of an FIU can raise a consent request during a customer interaction and fetch data digitally within a few seconds. Click <here> to watch a demo
Myth #4: All AAs are the same, there is no need to integrate with more than one of them
Reality check:
- Anumati has invested in making sure that the data fetch fits seamlessly into your existing journeys with minimal disruption or distractions for the consumer. As a result, all things equal, Anumati has consistently delivered the highest success rates in data fetches and is the fastest growing AA in the ecosystem.
- Moreover, consumers should be able to freely choose and use the AA of their choice, and not be restricted by either the FIU or the FIP involved in the transaction.
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