The Account Aggregator (AA) is a non-banking financial framework licensed by the RBI that enables secure viewing of an individual’s financial asset information, including bank accounts, mutual funds, equity investments, insurances, pension, etc.
Once a user registers with an AA, they can access information from their numerous financial accounts with different licensed bodies, view them in a consolidated manner, and even share details with other financial organisations on request.
These organisations could be third parties, lenders, insurers, wealth management firms, banks, or financial service providers. And the sharing happens in an encrypted format, in real time and always with the consent of the user.
As of Aug 2022, there are 7 non-banking entities licensed by the RBI to operate as Account Aggregator and CAMSfinserv is among the first AA licensee. Currently, 22 banks, including large private and public sectors banks, have been integrated into the AA network. Mutual fund and insurance companies are preparing to join the AA framework too.
CAMSfinserv is an advanced platform that offers a smooth and entirely digital experience to the consumer by unifying all of their asset information across financial institutions in one place. While all AAs collate and securely share the consumer’s financial asset details, CAMSfinserv, with its TSP solution provider Finduit, offers additional features that help enterprises which consume data from the platform to analyse data insightfully, enrich their product offerings and simplify services for their customers.
Let us review some of the unique use cases CAMSfinserv offers to Financial Information Users (FIUs) and customers :
1. Bank Statement Analyser
A customer may have accounts with different banks, non-banking entities, and also public fund schemes like EPF, PPF and NPS. Which means multiple data types and, thus, statements lie scattered across the many systems.
CAMSfinserv not only assembles all these details, including the history, in one place, its ‘Bank Statement Analyser’ feature also analyses the different account statements and breaks them into meaningful and consumable information.
Users (FIUs) can track the total income, total expenditure and account balances and even categorize whether the expenses are non-discretionary or discretionary. This feature will also detail if they have a surplus or lack even the minimum.
This amazing feature can track the customer’s spending habits too and thus help offer customized personal finance advice management by wealth managers.
2. Money Manager
Money management, which involves organically planning and managing one’s assets (FDs, equities, insurances, etc.), is a sought-after service today.
And wealth managers, to adequately guide their clients, require them to periodically share a vast array of financial details and documents. Not every document is digital, nor is every client always error-free.
To make work easy for both wealth managers and clients, CAMSfinserv’s ‘Money Manager’ comes to rescue.
The advantage here is that the AA already has all of the client’s financial details streamlined. All the user has to do is give consent for the data that needs to be shared from respective FIPs (financial information providers) with the wealth managers. With consent, the entire process becomes faster and cheaper.
Wealth managers can now more accurately assess their client’s financial situation, for example, with regard to their asset holdings and liabilities, debt, etc., and give appropriate advice.
Some of the benefits include:
● The customers don’t have to have to share the login credentials to their different accounts with wealth managers.
● The wealth manager will not be dependent on the client for asset details.
● The data shared will be in digital format; it can directly be received by the wealth manager’s platform and generate necessary reports.
● With all the info aggregated for viewing in one place, managers can easily analyse their client’s investments, asset allocations, sector allocation, investment risks, etc. and help them make the right financial decisions.
● Data tracking becomes easier.
3. Alerts on Upcoming Events
CAMSfinserv, with its ‘Bank Statement Analyser’, not just monitors the user’s bank statements, but on the basis of it, it can track necessary balance requirements and raise alerts about upcoming EMIs. This will help avoid bounces if the user doesn’t have the required money in their account.
Since the AA can track the user’s mutual fund investments as well, it can notify about upcoming SIPs too, so that they don’t miss them.
Often customers/investors end up incurring extra charges/penalties if ( when )they miss an EMI or SIP payment or if the bank account doesn’t have the monthly minimum available balance (MAB). Such negative events can cost money and your financial well-being and credit score.
CAMSfinserv can request for periodic consent for MABs. And if an EMI or SIP is coming up and the customer does not have enough balance in the account, it gives alerts to the user to add funds to the respective account. This way, it can help flag negative events and prevent financial damage and credit rating.
4. Account Verification
This is one of the primary use cases of the Account Aggregator, which potentially replaces TPV (third-party verification) procedures.
TPV is required for customers to fulfil to confirm the ownership of the bank account when availing any kind of financial service. Such as applying for a loan, investing in mutual funds/capital markets, or even buying insurance.
When done physically or in person, it involves the hassles of paperwork. When done digitally, the customer still has to enter multiple data types scattered across accounts and undergo several complex granular verification steps.
The AA system easily replaces this because it has all of the customer’s financial data from their various accounts aggregated in one place. And this can be easily accessed by service providers with the consent of the customer.
Today, multiple sectors in the industry authenticate customer accounts through the ‘penny drop’ system, which, on occasion, may not work smoothly. For instance, penny drop cannot validate a joint/multi-account number because it can recognize only up to 20 characters.
This issue is resolved with CAMSfinserv as it does not use the penny drop method. Using its advanced configuration, CAMSfinserv, with just the user’s consent, can instantly access and match necessary details such as name, PAN, bank account number, or date of birth.
There is no need to enter debit/credit card details, nor is there a request for OTP. This significantly reduces the chances of fraudulent activities, and any institution can easily verify the user account.
How Can You Get started with CAMSfinserv ?
CAMSfinserv is one of the few fintech companies that has RBI license to function as Account Aggregator. And here is how you can register yourself on it:
- Download CAMSfinserv app on your phone or PC from Google Play Store.
- Enter your phone number for verification.
- Set PIN.
- Confirm to successfully onboard CAMSfinserv.
From there, you will be redirected to link your financial accounts for safe, secure and consent-based viewing of your asset details. Here is how:
Sophisticated features like ‘Money Manager’ and ‘Bank Statement Analyser’ enable processes like account verification and wealth management to become more channelised.
CAMSfinserv not only allows the consumer to have absolute control over their finances but also modernizes the system of digital transactions.
By benefitting both consumers and banking and non-banking enterprises, the Account Aggregator, thus, aims to bring a revolution in the fintech space.
For More details Please visit : https://www.camsfinserv.com/