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Account Aggregators: All you need to know about account aggregators!, BFSI News, ET BFSI

Payment gateways have a bank working behind the scenes to issue merchant accounts. There will be many Account Aggregators an individual can choose between. Account aggregators replace the long terms and conditions form of ‘blank cheque’ acceptance with a granular, step-by-step permission and control for each use of your data.

what is an aggregator

SAHAMATI is a non-profit, private limited company and a collective of account aggregators in India to strengthen the AA ecosystem. Mostly, banking transaction data is available to be shared across the already-live banks on the network. Mobile-based solution for small business owners and their customers to enable recording of credit/payment transactions digitally across the country. The cab space in India is heating up and has seen phenomenal growth in the past few years.


This framework is expected to improve the efficiency of financial services toward propelling financial inclusion in the country. The easy availability of consumers’ financial data will also impact the credit distribution positively while improving the ability to underwrite new-to-credit and underbanked customers. Aadhaar eKYC and CKYC only allow sharing of four ‘identity’ data fields for KYC purposes . Similarly, credit bureau data only shows loan history and/or a credit score. The account aggregator network allows sharing of transaction data or bank statements from savings/deposit/current accounts. The customers prefer this aggregator’s model because they have the option of choosing over a variety of price ranges and it offers them a cheaper method to consume services by saving their money and time.

  • Working with talents/companies has many benefits ranging from cost-cutting to enabling focus on core issues of a business and aggregator makes it easier to find talents.
  • Once a customer picks which aggregator to use, she is assured of a certain quality of service.
  • Under the framework, data will be shared between financial information providers and financial information users .
  • Across many industries, companies are using innovation to their competitive advantage, and this is being reflected by the change in their business models.
  • Having UPI in your payment system enables businesses to provide an efficient checkout experience for customers who wish to pay via their smartphones.

For all providers but does not leave any space for uniqueness and brand identity. But if you are a new player who is struggling, an aggregator can actually help you get recognition in the market. With each order, restaurants bleed up to 30% commission per order, plus delivery and service fee. This can sometimes reach up to 50% of your order value, reducing your profits to single digits. For newer players, this can also mean an influx of orders, helping them sustain operations till walk-ins commence. Services like Limeberry only charge a minor fee per order, helping you keep your profits and grow your business instead of having to bother about giving up profits.

Financial Information User (FIU)

Consequently, service providers must give outstanding service to customers while following the contract’s terms and conditions. According to the aggregator business model, you probably already know that they offer service providers’ offerings under their own brand. In contrast, they simply link these suppliers with clients in the marketplace business model.

Although most of these platform offer insights, but they do not share customer data, so the restaurant will never know who their most loyal customers are. This, in turn, does not allow restaurateurs to create a rapport or bond with their customers, hampering the chances of converting them from an online to an offline customer. However, this comes with the benefit of getting new customers to your restaurant and spreading the word. Limeberry helps you get customer insights like never before with detailed dashboards and a unique, segment-first analytics feature.

Impact Through Technology In Dental Industry.

Transaction data or bank statements from savings/deposit/current accounts can be shared over the Account Aggregator network. Credit facilities, with the launch of account aggregator service, shall enhance and cater to the largely untapped pool of potential borrowers who might constitute the base of loyal customers for a particular banking service. This would make credit accessibility a real deal for people from all strata of Indian society. Payment gateways collaborate with the banks that operate behind the operations typically to establish merchant accounts.

  • The data is then stored in the account aggregation software, allowing access to balance information and transaction records.
  • You can launch a cloud-based platform that will aggregate and share patient health data.
  • This practice is full of problems such as data privacy issues or issues of cyber theft.
  • ClearTax serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

For instance, if you have opened an account at State Bank of India, your data like transactions, credit discipline will be collected by SBI. However, if you seek loan from SBI, it will use data to know your creditworthiness, etc. Formal financial systems in India do provide individuals access to robust solutions. Multiple programs have been developed and introduced to bring millions of unbanked citizens into the financial system. However, a sizable pool of underbanked and underserved consumers still exists.

What are Account Aggregators?

Borrowers who have access to online banking may also avail of quick credit without pledging any collateral through finance software apps that provide aggregation services like Quicken or Mint. In this process, you’ve most likely come across what is market skimming the terms “payment gateways” and “payment aggregators”, and you may not be sure as to which one to approach. However, the brand image identifies with the aggregator business model, and the aggregator focuses on providing quality standards.

Aggregators such as Netflix or Disney+ Hotstar provide a one-stop shop for multiple genre media consumption through its host of service providers. It is specifically stated by the aggregator that only works as a facilitator or booking agent and just intermediary for service providers. A partnership model is proposed by aggregator to service provider to get more and more customers. Through the aggregator, customers purchase services of the service provider. Payment aggregators have the capability to go through the underwriting process of the acquiring bank, and process payments using either the same Merchant Identification Number or different MIDs. In this article, we outline what differentiates a payment aggregator from a payment gateway, so that you can confidently choose the one that best suits your needs.

Advantages of Aggregator Business Model

Moreover, Internet users now create 2.5 quintillion bytes of data per day worldwide (FYI – there are 18 zeros in a quintillion). The best part is – businesses have found valuable ways to utilize this data to make better decisions. Ans- An Aggregator builds up his brand and attempts to attract customers via different marketing strategies.


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