TSP SaaS solutions like Sterling Finduit enable financial institutions to integrate into the Account Aggregator eco-system and access customers’ financial information with no integration challenges.
What is Account Aggregator?
Account Aggregator is the most talked about Fintech disruption in recent times. It is a framework mooted by RBI, and is a consent based digital framework that can collect customer’s complete financial data residing in silos with multiple entities, and serve it to Financial institutions in an encrypted format. With this data access, Financial Information Users (FIU) such as loan providers and wealth managers can make the right lending decisions and provide more informed investment choices.
The AA (Account Aggregator) system allows the customers to share their financial information in an encrypted format from multiple Financial Information Providers (FIP) to an FIU through a centralized API-based system.
AA can help reduce cost and time for banks in their loan approval process thus enabling lower ticket size loans. Further, periodic consent allows the banks to create new lending models based on cash flow rather than credit history alone. Finally, the AA platform also helps the service providers eliminate fraud risk from paper or pdf based statements.
With top banks in India like Axis, ICICI, HDFC and others joining the Account Aggregation framework, it has the potential to be a truly transformative initiative for millions of individuals and businesses.
Integrating into the Account Aggregator System
While the advantages of AA are tremendous for both institutions and customers, there is the need for a robust technical architecture to transfer and decode the data effectively. The customer interacts with the AA system through an app/ web-based application (AA client) to provide consent. Further, the ecosystem runs using a set of standard APIs that will facilitate secure, seamless and consent-based sharing of various kinds of financial information between the various players.
To create this architecture and generate the APIs required to become integrated with the AA system, Financial Information Users and Financial Information Providers can seek out Technical Service Providers (TSP) specialised in AA.
Technical Service Providers – The What and the Why
TSP or Technical Service Providers are companies that provide integration solutions that connect FIU and FIP to the account aggregator framework.
While some financial institutions can develop their own solutions to participate in AA framework, here are some reasons why most financial entities choose a TSP to on-board the AA system:
- TSP solution has modules that seamlessly connect a company’s existing solution to the AA ecosystem and act as a single point to handle all the integration architecture, helping financial institutions save time in their integrations. This allows the FIP (Financial Information Providers) and FIU (Financial Information users) to concentrate on their core business.
- Working with a TSP partner who is an expert in AA architecture will help with a faster rollout and provide timely feature updates. This also ensures that the enterprise catches up with ever evolving AA tech standards as mandated by ReBIT (Reserve Bank Information Technology Private Limited).
- As of today, ReBIT mandated APIs are a bit tedious for enterprises to implement as it require digital signature and implementation of advanced cryptography. TSP takes care of these challenges so that FIP and FIU can quickly access the AA platform with a plug and play set up.
- TSP solutions can bring readymade dashboards, scorecards and models for data analysis which can serve as inputs for proprietary analytical tools of the FIU.
- TSP solutions are interoperable – which means that they can be integrated with all account aggregators and cover all use cases for FIU. They can also help refine and curate the customer journeys to facilitate trust and enable financial institutions to make their service easier for the end customer to access.
So why take the stairs when you can take the elevator instead?
A one-stop entry to the world of AA for Financial Institutions – CAMSfinserv + Sterling Finduit
For a financial Institution looking to get onboarded to the AA ecosystem, choosing the right AA and TSP might be a cumbersome task. While there are seven licensed Account Aggregators in India, CAMSfinserv AA stands out in its commitment to making the process of onboarding simpler for its partners.
To make the process of onboarding easier for its partners, CAMSfinserv has partnered with Sterling Software, a Technology Service Provider to bring Finduit – a simple and ReBIT compliant plug and play solution into the AA platform. Finduit comes equipped with the RBI mandated APIs and digital signatures to enable smooth onboarding and data flow for the partner institutions. Sterling Software Private Limited is a fully owned subsidiary of the CAMS group, having decades of market experience and trusted by the largest financial institutions in the country.
Together CAMSfinserv + Finduit could be the faster, simpler and most secure entryway to the Account Aggregator space for a Financial Institution.
For More Details Please Visit Our Website :
https://www.camsfinserv.com/
Reach out to us at sales@sterlingsoftware.co.in or visit https://sterlingsoftware.global/contact/.
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