It is irrefutable that the Account Aggregator framework will become a game-changer for the dissemination of financial services. Built to prioritise user consent , data privacy, and a good user experience , the ecosystem has ushered in a paradigm of information sharing unlike any seen before – it offers a unique value proposition that combines data privacy with a superior user experience.

How exactly does the Account Aggregator framework enable a superior user experience while also ensuring data fidelity? To answer this, we must first look at the limitations of sharing financial information.   

What makes sharing financial information difficult?  

Financial information is sensitive 

Since financial information is sensitive and prone to misuse, overcoming user hesitation in sharing is among the biggest challenges for digital financial service providers. As a result, sharing of financial information is also heavily regulated. 

Users are required to share financial information generally at the time of onboarding. This is when financial services platforms carry out customer due diligence and KYC – complex procedures that place the user in a position of taking cognitively burdensome actions.  

Too many touchpoints in the journey make it tedious 

Users are required to share several identification documents for due diligence, in addition to financial documents required for the provision of financial services like bank statements for loan underwriting. This adds too many touchpoints in the onboarding journey, increasing cognitive burden, and therefore, the possibility of drop-offs.    

Complexity of learning & decision-making

Financial products and services are complex to purchase. It requires a significant amount of learning on the user’s part to complete the purchase. Financial services platforms are often required to handhold the user during the onboarding journey.

Also read: Our guide to onboarding

How Account Aggregator-based user journeys can improve information sharing 

Consent-first data fetch, straight from the source

The Account Aggregator framework places user consent front and centre. It secures users’ explicit consent before fetching their financial information, directly from the custodians of such information (i.e., FIPs like banks or insurers). This protects both the user (by prioritising data security) and the platform (by ensuring protection from fraud by removing data intermediaries).  

Enables transparency without cognitive burden

Account Aggregators fetch data through a simple OTP-based method built into the onboarding journey. In lending for example, this intuitive step reduces the cognitive burden on the user, as opposed to the process of uploading bank statement PDFs or entering their net banking credentials that might not be readily available. 

This is not to say that the user might not experience anxiety about authorising auto-discovery of accounts. Platforms alleviate this by offering guidance around the data sharing process, and information about the usage of the collected data.  

Account Aggregator-based journeys are incredibly conducive to the implementation of choice architecture . For example, platforms can choose to set AA as the default mode of information sharing, thereby reducing the burden of making a choice and directing users into a more intuitive and automated journey.  

Empower users through informed consent  

The Account Aggregator framework has been designed to secure consent from users, but only after they have been duly informed about who stores their AA accounts, the usage of their data, and the duration for which it will be available to the FIU, and more. This allows FIUs or platforms seeking user financial information to enable one-time or recurring consent, depending on the use case. For example, FIUs may prompt users to give recurring consent so they may enable loan monitoring.

Conclusion  

The Account Aggregator framework not only addresses the challenges associated with financial information sharing but also redefines the user experience by prioritizing privacy, transparency, and informed decision-making. As this innovative ecosystem continues to evolve, it undeniably emerges as a game-changer, paving the way for a more secure, efficient, and user-centric future in the realm of digital financial services. 

Bonus Case Study: If you’d like to know more about how FinBox’s AA cut down frauds and improved conversion rates in lending journeys, download our exclusive case study .

To learn more about how Account Aggregator helps improve user journeys, get in touch with us for demo .