The increasing prevalence of digital technology in every industry is changing the way we work and do business. Companies that can take advantage of the shift towards remote working, digital payments, and online shopping are seeing their sales increase rapidly, often at the expense of their slower and less-agile competitors. The ubiquity of digital payments, thanks to reforms such as UPI, is a testament to how far the financial ecosystem has come; hence it is no surprise that 71% of all payment transactions in India are projected to be digital by 2025.
Financial services have always been changing and adapting, but the new Account Aggregator (AA) ecosystem is likely to bring about even more disruptions. AA is an RBI initiative that will allow consumers to easily access and use their financial information for their benefit. Once it is fully functional, all aspects of a user’s financial data, investments, insurance policies, loans, bank details, etc. will be just a glance away. The account aggregation services are designed to make it easier for people to access the financial data of individual and business customers. Eight major banks quickly joined the AA network including State Bank of India, ICICI bank, Axis Bank, IDFC Bank, Kotak Mahindra Bank, HDFC Bank, Induslnd Bank, and Federal Bank. Here is the article throwing some light on the importance of account aggregation services.
Need for Account Aggregation Services
- Effective Tracking and Monitoring of Investments
Account aggregation services will not only enable investors to monitor their holdings in real time but also empower them to make quicker, smarter decisions on their investments. This could lead to potentially better returns and avoid costly mistakes.
- Lower Leakage in Investments
Every year, banks earn thousands of crores of rupees on funds sitting in low-yielding current and savings accounts. A large part of these deposits is purely due to either lack of information or lack of proper financial planning. The guidelines for account aggregation will allow fintech companies to effectively plan and guide depositors to make sure that any money not being used in the account can be invested somewhere else with better returns.
- Tax filing
Providing your CA with all financial transactions and statements from across accounts can be a hassle, especially around tax filing deadlines. However, fintech players like investment advisors can use the account aggregation services to prepare and show all relevant details, including capital gains and income, needed for filing taxes. This background work can be done with just a few clicks of a button.
Conclusion
Anumati provides the finest account aggregation services that enable you to just register with the mobile number that is registered with the bank. Anumati AA offers a unique consent management solution that drastically cuts down processing time and improves your experience of doing business with financial institutions. Now, you can rest assured that your data is in safe hands, secure, and always up-to-date.
