It’s not a secret anymore that technology which growing rapidly also give chances to new innovations.
Especially in the financial industry which is keep growing with the influence of technology in it.
Many users who previously were low in financial literacy are starting to introduced the financial world more.
The reason is easier now to access and find out about financial facilities, starting from opening an account, transacting, even investing.
All of the benefits are inseparable from the development of Open Banking API concept that help users and financial industry to find access and meet in the middle.
Having previously discussed what Open Banking is, this time we will talk about Account Aggregation.
However, we summarize them all below to get more details.
Get to know Account Aggregation
In short, Account Aggregation is an innovative product of the Open Banking system that we have discussed previously.
In this case, it becomes a service to connect a fintech platform with user accounts to do specific action, for example a transaction.
Of course this will be beneficial for both parties, financial industry and its users
For example, the activities on financial services or banking products.
Account Aggregation Benefits
In everyday life, the benefit of this system is known to make everything easier for banking activities, such as transactions.
Without having to visit the bank, users are privileged to do activities even within application.
Meanwhile, the benefit for financial industry is to simplify process of collecting users data.
There is no need to collect the data by requesting it directly to the user one by one.
Through developed financial platform that can be accessed directly by users when completing administrative processes, the collected data will be more real time and more safe to fallacies.
Understand How Account Aggregation Works
How about the process?
To simplify, users will make transactions on a financial platform.
On the platform, users usually will be asked for approval of a financial data license.
If the user give permission, they can access their banking account immediately to enjoy easier transaction process through the financial platform.
On the other side, from the side of the financial industry can use the data to analysis the process and provide a detail financial reports.
For example, in Finfini you can be integrated with various bank accounts and simplify the transaction process.
With a developed easy-to-use interface, it will definitely provide comfort for the users.
Advantages of Account Aggregation
After getting to know what Account Aggregation is, how the process works and the benefits for both, we will discuss what are the advantages down bellow.
Easier Integration Process
First of all, the advantage that you will immediately feel is the easier integration process.
With the advanced development on the application, you can immediately make administrative process yourself and add another important accounts according to your need.
This is basically supported by application which designed as simple as possible to be used by various stages.
Faster Financial Management
Another advantage is faster money management.
Through one application that can be integrated with various financial services, you can perform several activities at once.
For example, you want to move your balance from personal savings to checking accounts.
Or, if you want to start your first gold investment and check your credit card bills next.
More Time Efficiency
Besides of being simple, the service is also more efficient when it comes to time.
Because you can do almost everything from an application, your will not run out of time to complete your financial activities.
With this developed system, you can do all of these processes only from one platform without having to queue for a long time at the bank appointment.
Detailed Financial Report
Another advantage of Account Aggregation is that you can find more detailed financial statements.
In this case, it will be easier for you to monitor transactions.
Through the ability of Account Aggregation, which can be place for many accounts, you can immediately see each transaction history of every accounts without having to visit one by one.
Is it Safe to Use Account Aggregation?
This question may has crossed in the minds of many people.
In fact, OJK has protected and supervised Account Aggregation as of December 2020.
Usually, trusted fintech companies are registered with the OJK and if you are in doubt, you can immediately check for its legality.
In addition, there is also Law Number 19 of 2016 which contains rules for personal data rights to be free from communication interference without being spied on.
So, you don’t need to be afraid to use Account Aggregation service.
Hopefully this brief explanation of Account Aggregation will inform in many ways.