What is IDFC FIRST Bank account aggregation (and how it helps save money)

We use various online portals that aggregate all the news in one place. We also choose aggregator websites to compare different insurance policies on a single platform. Now, what account aggregation does is not very different from such aggregators. Account aggregation is a network with several stakeholders, including you, the end user.

Account aggregation was launched in 2021 to streamline lending and investments in India, through a framework called the Account Aggregator (AA) network. Through this launch, what account aggregation does is provide a more efficient lending, wealth, and financial management solution. 

What is account aggregation?
 

Before understanding how account aggregation will benefit you as a customer, let’s find out what account aggregation (AA) is. The AA system is a framework regulated by the RBI comprising of Financial Information Providers (FIPs) and Financial Information Users (FIUs).

1.  Financial Information Providers (FIPs):

These institutions (such as depositories, banks, and NBFCs) hold user data. They share customers’ financial information with Financial Information Users (FIUs) upon request through an Account Aggregator. The data is digitally signed and shared in a machine-readable format.

2.  Financial Information Users (FIUs):

These entities (like banks, lending agencies, and NBFCs) receive digitally-signed data from FIPs. They can use this data for purposes declared in the Consent Artefact or data-sharing agreement. For example, FIUs might provide services like loans, insurance, or wealth management based on this data.

For example, let’s assume you want to access your personal information available with a bank and share the information with a SEBI-regulated service provider. Through the AA network, you can do so easily. 

What is an account aggregation offering?
 

IDFC FIRST Bank is among the first few banks to join the AA network. As an IDFC FIRST Bank customer, you get the following benefits -

• Faster and easier access to financial services by ensuring quick access to historical data with the AA system
• Support from the bank in getting access to innovative financial services and products
• Secure and seamless sharing of encrypted data; no login credentials shared with any third-party

Access to loan products
 

With the AA network, IDFC FIRST Bank customers can access financial services like loans through a simple, mobile-based data access and sharing process. Better access to loans also helps save money. 

Access to financial services
 

From demat and trading accounts to mutual funds, gold bonds, and insurance products, IDFC FIRST Bank provides a wide range of investment services. Money and portfolio management rests at your fingertips with the IDFC FIRST Bank Mobile App. Account aggregator is one of the 250+ features available in the IDFC FIRST Bank Mobile Banking app. 

The AA network further streamlines the portfolio management needs of IDFC FIRST Bank customers.

Why opt for the account aggregation feature?
 

Based on your consent, FIUs request your digital financial information from AA. AA collects the same from FIPs, like IDFC FIRST Bank through open APIs. The information is then shared with the FIUs in real-time through an encrypted data flow. AAs cannot read or resell your data and is an interoperable data-blind consent manager.

In conclusion
 

An AA network will help you to save money, get fast access to innovative financial products, and get the desired service in a seamless and hassle-free manner. If you are a small business owner, AA will spare you the waiting time and documentation while seeking financial and banking solutions. If you are looking for such services, download the mobile banking app and start enjoying unmatched banking convenience.