Axis Bank, a private sector lender, announced on Thursday that it had started using the account aggregation (AA) framework for lending.
Along the account aggregator journey, the bank offers small business loans, credit cards, auto loans, and personal loans. For existing and new consumers, it offers fully digital and paperless fast loans.
Axis Bank currently supports retail and SME customers on a number of account aggregators including Anumati-AA, OneMoney-AA and FinViu-AA. Since the account aggregator framework went live, the Bank’s loan disbursements have increased by more than 30% month-on-month, the bank said.
According to Sameer Shetty, President and Head of Digital Affairs and Transformation at Axis Bank, “In line with our OPEN strategy, we are excited to offer immediate, digital and paperless lending solutions to all Indians.” “Now customers can share their banking information with us and receive loans through a simple digital process. Axis Bank has invested in digital products that rethink customer propositions because it believes in the power of ‘OPEN’ banking.
The RBI licenses organizations called “account aggregators” that provide customers with a seamless digital experience while sharing their bank accounts with other regulated organizations. The framework has grown rapidly and provides quick and easy access to consumer financial information in a secure environment.
Banks are able to create innovative and user-friendly lending, credit monitoring and wealth management experiences through their secure access to this data.
The USP of this framework is the ability to consolidate a customer’s financial data, which was previously scattered among many banks, insurance companies, mutual funds and other institutions, into a single digital framework that makes it easy to access.
When a customer shares their banking information with other banks or financial institutions via hard copies or PDF documents, it usually involves a large amount of work.
However, this framework provides a secure way to exchange information, and its core design principles are client authorization and data protection.
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