One of a financial advisor’s most effective techniques is account aggregation. It is a process that automatically gathers financial data from accounts at various institutions, such as your custodian and clients’ held-away accounts, consolidates it in one location, and makes it accessible to other systems. It does away with manually entering data into financial planning, performance reporting, CRM, client portals, or other systems from paper-based statements. Direct data connections are one method of obtaining account information. As the name suggests, direct connections connect computer systems directly and are created with the regularity and specificity that computers need. Choose the best account aggregation providers for your business. Let’s discuss the use cases of account aggregators:

Managing wealth

There are several forms of financial assets, and investors use a variety of apps to purchase them. With the user’s permission, an account aggregator platform can assist in combining all the information linked to financial assets into a single readable document that can be distributed to any service provider. An account aggregator platform will gather all this asset data, consolidate it into one readable format, and share it with the appropriate financial institutions, enabling complete analysis without needing physical statements of all assets in question. Choose account aggregation providers who provide the best software and can help you save time and money.

Lending

The enormous potential AA presents for banks and NBFCs to increase the pace of safe lending should be seized. By removing data access barriers, AA enables them to process more loan applications in less time. The financial information provider, such as the borrower’s bank, digitally signs the real-time data lenders can acquire from borrowers via account aggregators. The reputed account aggregation providers offer the right software.

Lenders can work with AAs to lower the risk in their loan portfolios. NPAs need to be decreased. Lenders can provide their clients with more specialised and unique lending products. The most important component of AA is loan monitoring. Due to the ability of lenders to track loan accounts after they have been disbursed, smaller loan loss provisions and early intervention are now possible.

Monitoring Spending

People frequently make little discretionary purchases, such as purchasing movie theatre popcorn or taking a taxi to work. Over time, these modest costs can add up to a sizable sum. Having a single-window viewing of all the financial data, including cost data collected from different banks at one location. It may help customers better understand which things they are spending the majority of their income on and, therefore, help them in better management. Hire famous account aggregation providers to get customized software.

Bottom line

Finally, the above mentioned are about the use cases of account aggregators. These are the various types of business sectors that utilize this account aggregator software to maintain their accounts safely.