The account aggregator or multiple accounts wallet, might change business management, credit and investment significantly. It will be done by granting millions of people better access to and control over their financial records and enlarging the potential market for lenders and fintech firms in Nigeria. Account aggregators empower people by giving people authority over their overall financial data, which would otherwise stay in silos.
The method can significantly speed up and reduce the cost of lending and business management.
What is account aggregation?
Collecting a customer’s financial information under one roof is known as account aggregation.
Account aggregation services essentially serve a wallet where it gathers information related to transactions, savings and the account.
Consider how much of your life revolves around your email account, including work and personal communication, purchases, fund transfers, Uber rides, and late-night sushi food orders.
Account aggregators try to fill the same purpose while providing a more detailed look at all of the financial areas of a Business Owners life from a single dashboard.
The network effect also propels account aggregation apps, making them more valuable to new partners and customers the more connections they provide.
Top Benefits of Bank Account Aggregator
Process financing faster and make credit services more effective
Lenders in Nigeria will be able to evaluate a customer’s financial history thoroughly and process loan applications more quickly by using the customer’s consented financial data accessed by the AA system.
No more paperwork for greater business efficiency
Lenders will be able to evaluate a customer’s financial history thoroughly and process loan applications more quickly by using the customer’s consented financial data accessed by the AA system.
When a customer’s financial institution is linked with the AA network, no documentation or KYC is necessary when the customer subsequently applies for loans. The borrower merely needs to give the AA permission to access all of their information, including their KYC, and then offer that information to the lender to which they are asking for a loan.
Secure data processing
The AA framework must adhere to solid data sharing and privacy norms. The AA system will use protected digital signatures to identify shared data. While being sent from the originating institution to the company the customer is looking to borrow money from or purchase another financial product from, the data will be completely encrypted.
An AA is data-blind because all the data it processes is encrypted and can only be decoded by the FIU requesting the data. Data cannot be viewed or saved by the AA.
Streamlining client data
Finding a borrower’s financial information dispersed across several financial institutions is time-consuming and challenging. With the customer’s permission, an AA plays a vital role in this situation by gathering and putting a lot of data in one place and then giving it to the specified bank or lender upon request.
Single dashboard for more efficient access
An SME owner can access numerous financial service providers through a single interface using AA systems. AA determines which financial data to obtain and communicate with which bank or lender based on the customer’s approval and preference. The borrower has complete control over the data and may choose a period during which the bank may pull and share the data in the system.
AA is unquestionably a game-changer in the loan industry. It’s undoubtedly a positive start toward developing a solid and innovative loan ecosystem. Banks and other financial institutions are becoming digital lending powerhouses due to the financial sector’s rapid emergence of digitization. However, many people still need help with digital lending, while others want to enhance their game.
For the best account aggregator experience, Sign- up to Lidya Wallet today.