Over the last few years, account aggregation has been revolutionizing the financial sharing network by providing millions of users the access to managing their finances and expanding the potential pool of customers for fintech companies. They are popular for many reasons as it empowers the individuals to have control over their financial system. Whether you’re an entrepreneur, financial institution, financial advisor, or just an individual. Account aggregation provides or gives quick and easy access to a single view over the internet. It represents and analyzes all of a single customer’s financial data, which is essential these days.
This article will take you through what account aggregation is. The benefits of using it and everything that you must know before involving your finances.
What is Account Aggregation?
Account aggregation in finance is a software that collects and stores financial data from various sources. This includes banks, credit cards, investment accounts etc. It unites every data into a single platform to provide an easy and holistic view as well as analysis of personal finances. This concept has been started off in India with the eight largest banks. This makes wealth management much faster and more secure.
Benefits of Using Account Aggregation Network or Framework
There are myriad benefits of using account aggregation software, including: –
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Insights of All Your Financial Data at One-Place
The foremost and key benefit of using account aggregation software is that it allows the users to view their account information and financial insights in one location at any time and from anywhere. These financial insights on a single page can help the users to make well-informed decisions, which in turn gets more opportunities and ideas to generate or improve revenue.
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Saves Time and Less Manual Work
Account aggregation keeps your data up-to-date and always available online and reduces the manual work of gathering, editing and updating the financial information. This significantly saves time and reduces the errors in storing your significant data, and also reduces client confusion.
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Expanded Revenue and Service Offerings to the Client
As a financial advisor, using the account aggregation software permits you to provide your clients with a full, unfiltered financial picture. This will help you to give access to comprehensive guidance and advice to your clients related to finances and also provide assistance in generating additional revenue faster.
Factors to Look for While Choosing the Best Account Aggregation Software
The demanding use and wide acceptance of using the account aggregation software have led to an increase in the number of available options in the competitive market. So, it becomes challenging to choose anyone for your requirement and need. If you are confused and not sure what to look for, here are certain important aspects that you need to know.
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Know the Size of Account Aggregator Network
For a data aggregation system to be most successful in normalizing financial data across different institutions, it must be exposed to the greatest number of variables. With tens of thousands of data sources and hundreds of thousands of account types in the world, there is a nearly unlimited number of transaction types – most of which are not supported by any sort of industry-standard format. The power of the account aggregation solution is directly linked to the size or breadth of the account aggregator network.
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Ease of Use
Don’t invest in an account aggregation software, which is very complex to use and, and difficult to understand. Your selected account aggregation software must be easy to use for your customers or clients so that they can easily set up their accounts and get started. The tools that enable the account aggregation solution must be user-friendly, credible and loyal. It must drive adoption to any customer or client of yours, which helps with easy registration.
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Data Accuracy is a Must
Your account aggregation platform should offer a high-quality and intelligent data service that can aggregate, cleanse, store and augment consumer data. Data quality is something that takes years to develop and is often contingent on the number of sources that your selected platform is pulling data from. For instance, your selected platform should be able to collect data from banks, credit cards, loans, mortgages, insurance providers, bills and more – all in a range of structured and semi-structured formats like HTML, OFX, or custom feeds. In addition, the financial data aggregation software online transaction processing system database should always be updated with the recent data that is being collected.
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Wide API offerings
The best account aggregation software should offer varieties of APIs (Application Programming Interfaces) to the account, which offers numerous benefits to the financial advisor. Some of the APIs such as: –
Bank Account Verification API
Your selected account aggregation platform should have a verification process that is fast, efficient and secure. This process should securely confirm the available funds in accounts in real-time before funds transfer. Reducing the abandonments during consumer onboarding for funding events.
Categorization Accuracy
Your account aggregation software should ideally have a transaction categorization engine that can quickly and accurately analyze. It categorize each incoming transaction. This will save you a lot of time and energy in the long run, and it will also help you keep track of your spending more effectively.
Geo-Location API
This API is helpful for you to correlate transaction details with a physical location. Such as the merchant’s name to the address.
The Bottom Line!
Anumati is one of the finest account aggregation software that uses your mobile number for registration. Make sure that you use the same mobile number which is registered with your bank. Then, it automatically searches for fixed deposits and current and saving accounts in the banks linked to your mobile number.
Once it is discovered, you can select the ones from the options that you want to add to the system. Otherwise, if you wish, you can also manually add details of the participating financial accounts. The best part about this app is there is no limit on the number of accounts you want to link. With the help of the Anumati account aggregation the end consumers gets benefits like your processing time is reduced, and you will enjoy the enhanced experience of doing business with financial institutions.