India is a country that is well aware of consumer rights and has strict norms related to the access and use of its citizens’ financial or banking data. RBI has introduced a data-sharing interface known as Account Aggregator (AA) to resolve privacy issues and create ways and mediums to address the monetary requirements of its citizens.
The RBI account aggregator ecosystem is a financial and banking data sharing network that authorises customers to be in charge of their monetary details. It is expected that this system will extend the prospective customer base of banks, fintech companies, and NBFC. It is regarded as the base for open banking in India. The system will allow users to safely transfer their banking information between various institutions digitally. Thus making investment, lending, and wealth management faster and more economical. Definitely, the AA framework will reform the way fiscal services are offered in India.
What is the RBI Account Aggregator Framework?
The RBI account aggregator framework is a financial data sharing platform that allows you to keep all of your accounts in a single place. Once you have linked your accounts, it will automatically match your information and give you an overview of your finances. You will be able to see all of your account transactions, balances, and due dates in a single place.
Benefits of Using RBI Account Aggregator Network
Here is a list of the most essential benefits of the AA ecosystem:
Quick Loan Processing
With the help of the RBI account aggregator ecosystem, loan providers can now fast access a customer’s account history. Having the details assists in processing loan applications quicker by digitally following the due diligence and compliance processes. This is accomplished by accessing the customer’s approved account info, which is allocated in the AA framework.
Zero Paperwork
If a financial organisation of a customer is listed in the AA system, the customer does not need to fulfil the KYC during the application process. They are only required to give their consent to the RBI account aggregator to access all the details.
Safe Data Processing
The RBI has fixed strict information allocation and privacy norms for the AA framework. All details allocated by the ecosystem will have safe digital signatures and be completely encrypted. When sending from the source bank to the FIU that wishes to offer some service to the customer, the details have to go through many layers of encryption and verification. The AA framework is data-blind as all details processed via it are encoded and can only be processed by the FIU that asked for the info.
Safe Customer Data
Manual tracking is very time-taking and tough, as collecting a borrower’s banking info from diverse monetary institutions can be a tiring task. The AA system plays an essential role in this process by aggregating a huge sum of information. The detail is allocated with a specific FIU when the customer asks for it, and the customer provides their permission and then shares it.
Easy Dashboard
AAs let customers check their scores for financial services from various institutions on one dashboard. With the customer’s permission, AAs can allocate particular account information to banks and NBFCs. Borrowers have complete control of their info and can fix a timeframe for how long banks can go through their details.
Simple Onboarding
The RBI account aggregator system will entirely change the manual procedure of data gathering and updating with digital and fast information processing. This will save enough time and resources for both banks and customers, thus enhancing coordination among them.
What is the Manual Financial Data Tracking?
Manual tracking includes recording and tracking monetary transactions and accounts without the use of automatic tools or software. This process needs people to rely on traditional recordkeeping and human interference to accumulate, organise, and assess their account information.
While manual tracking can offer a sense of control and detailed knowledge of your finances, it has been changed by the AA framework. It gives increased efficiency, ease, and accuracy. It can automatically import and classify transactions, generate reports in real time, and provide with useful insights into your finances.
What are the Disadvantages?
Error Sensitive
Manual data entry is a tiring task, and even wise people can make mistakes. This can lead to inappropriate fiscal details, which can have severe outcomes for your business.
Tough to Assess
Once you have gathered and arranged your monetary info, it can be hard to assess it manually. This can make it tough to check trends and patterns in your expenses.
Increased Costs
If you still employ manual accounting methods, companies generally think you are saving cash by ignoring contemporary systems. Moreover, manual accounting is costlier than they consider.
Time-Consuming Process
Manually accumulating and arranging your fiscal data can be very time-consuming, specifically if you have many accounts.
Difficulty to Manage Financial Decisions
Without the capability of analysing your account details, you will miss helpful insights into your spending behaviours. This can make it hard to make effective financial decisions.
How can Generative AI Accompany Account Aggregator for Financial Services?
Generative AI for financial services can increase awareness among users in rural areas. It can be used to discuss the advantages of the account aggregator ecosystem. By employing a knowledge base and information recovery systems, users can get feedback on their questions in their selected language. It is hugely used in personalising customer service. For personalised financial advice, AI assesses customer details to provide tailored financial suggestions.
Generative AI goes further than sentiment analysis, allowing financial organisations to gain a deeper understanding from discussions with customers. For example, throughout a discussion with a customer who is facing difficulty in loan reimbursement, the system can identify the dialogue, check prospective problems, and even retrieve appropriate news information. This allows a more successful response, assisting in addressing monetary challenges and offering relevant solutions.
Final Words
The RBI account aggregator framework will be a significant tool for people who have many accounts and find it tough to check their finances manually. Thus, employing AAs like Anumati automates the procedure of gathering and organising your account or banking data, which will save you more time and effort and prove profitable in the long run.
