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Bank of Baroda (BoB) has signed up on the Account Aggregator (AA) platform, promoted by Sahamati, a member-driven non-profit industry alliance, with personal loan products to tap into the festive sales season, public sector. the bank said on Thursday.
In a press release, BoB said it has joined the platform as a financial information user (FIU) and will provide other digital loan products in addition to personal loans in the near future.
The AA framework, launched in September 2021, facilitates data-blind sharing of financial information in real time between different regulated entities.
BoB executive director Joydeep Dutta Roy said that the AA platform provides the bank with a unique opportunity to deliver a more personalized experience to customers.
He added that BoB’s ability to offer uniquely tailored products to customers will be significantly enhanced when other banking, financial services and insurance (BFSI) entities regulated by IRDA, SEBI and PFRDA, join the account aggregator framework.
How does it work?
The platform shares customer data with their consent to financial institutions after compiling it in a readable format for loan processing and other purposes.
BoB customers can now apply for digital personal loans through the BoB world android or iOS app, net banking channels or its website. The loan process is completely digital and paperless.
BoB chief digital officer Akhil Handa explained the benefits, saying the AA ecosystem could be the “next big disruptor” in providing credit and investment options to millions of Indians.
BoB said they currently have their account aggregator interface with 5 companies, among them are– Cookiejar Technologies Private Limited (FINVU), Finsec AA Solutions Private Limited (Onemoney), CAMS Financial Information Services Private Limited (CAM FinServ) , NESL Asset Data Limited (NADL) and Perfios Account Aggregation Services Private Limited (Anumati).
Account Aggregator Scope
In April this year, Union Bank of India became the first public sector bank to join the AA framework as a financial information user (FIU) and financial information provider (FIP). The FIU may request customer data from the FIP with the customer’s consent to provide services such as loans, wealth management, etc. Handa said the AA framework provides better risk monitoring capabilities, simplifies the digital banking process, gives customers access to new and innovative loan products, reduces turnaround time (TAT) for loan processing, provides easier credit access to the unorganized sector , and other benefits.
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