Financial institutions in India have the ability to connect and play with the Account Aggregator Platform.

TSP SaaS solutions like Sterling Finduit permit financial institutions to be part of the Account Aggregator ecosystem and gain access to customer's financial records without a problem with integration.

What exactly is Account Aggregator?

Account Aggregator is one of the most discussed Fintech disruptive technology in recent years. It's a concept proposed by the RBI in the past, and it is the first digital framework that is based on consent which can gather customer's full financial information that is stored in silos, shared with various organizations, and provide the data to financial institutions with encrypted data. By having this access to data, Financial Information Users (FIU) like loan lenders and wealth managers will be able to make informed loans and offer better informed choices for investing.

The A (Account Aggregator) system allows clients to provide their financial data with encryption through several financial Information Providers (FIP) to an FIU via a central API-based system.

The AA program can reduce costs and delay for banks when it comes to their approval of loans, making loans with smaller ticket sizes possible. Additionally, the periodic approval allows banks to design new loan models that are based on cash flow, not credit history by itself. The platform helps service providers to eliminate the risk of fraud by removing paper or PDF-based reports.

Top banks from India such as Axis, ICICI, HDFC as well as others being part of in the Account Aggregation framework and could be a transformative program for millions of people as well as businesses.

Integration into the Account Aggregator System

Although the benefits of AA are immense for both clients and institutions However, it is necessary to have a solid technical infrastructure for transferring and decoding the information effectively. Customers interact with the application(web-based or app) (AA client) for permission. The ecosystem is also operated by using standard APIs to facilitate safe, effortless and based on consent sharing of different kinds of financial data between different participants.

In order to create this structure and create the APIs needed to be integrated into the AA system Financial Information Users and Financial Information Providers are able to seek Tech Service Providers (TSP) that specialize for the AA.

Technical Service Providers: What and Why? What and the Why

TSP (also known as Technical Service Providers) are businesses that provide integrated solutions for connecting FIU as well as FIP to the framework for account aggregators.

Some financial institutions may come up with their own ways to join the AA framework Here are a few motives why the majority of financial institutions opt for a TSP in order to join the AA system

TSP solution includes modules that connect seamlessly the existing system of a business to the AA ecosystem. They act as a central point that handles all aspects of the interfaces, assisting financial institutions speed up the process of integrating. This permits the FIP (Financial Information Providers) as well as FIU (Financial Information Users) to focus on the core of their operations.

Partnering with a TSP supplier who is experienced expert on AA architecture can help in the speedier rollout of features and also offer timely updates to features. It also helps ensure that your company is up to date with constantly evolving AA technology standards, as stipulated through ReBIT (Reserve Banking Information Technology Private Limited).

At present, ReBIT mandated APIs are difficult for businesses to set up since they require the digital signature of the user and sophisticated cryptography. TSP solves the issues so that FIP and FIU are able to easily gain access to the AA platform through an easy plug and play set up.

TSP solutions are able to provide ready-made models, dashboards, and scorecards to analyze data that can provide inputs to customized analytical tools from the FIU.

TSP solutions can be interoperable this means they can integrate with any account aggregaters, and can be used in all situations that FIUs can use. They also can help to refine and enhance the customer experience in order to improve trust, and allow banks to make their customer service more accessible for the user to use.

Then why do you have to take staircase when you can use an elevator instead?

One-stop access into this world Financial Institutions CAMSfinserv & Sterling Finduit

If you are a bank seeking to join the AA system, picking the best AA and TSP could be an overwhelming job. There are seven authorized Account Aggregators within India, CAMSfinserv AA stands with its focus on helping make the process of registering easy for its customers.

To make the onboarding process easier for its partner institutions, CAMSfinserv has partnered with Sterling Software, a Technology Service Provider to offer Finduit as a straightforward and ReBIT compliant plug & play application to the platform of AA. Finduit has RBI authorized APIs and digital signatures, which will facilitate seamless onboarding and flow of data to institution partners. Sterling Software Private Limited is an entirely owned affiliate part of the CAMS group. It has many years of market knowledge and trust by the biggest banks in the nation.