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Account Aggregator

In this article, you will find information on the different entities involved in Account Aggregator APIs, their role and how the APIs work.

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Entities involved

  • Account aggregator (AA)

An Account Aggregator is an intermediary entity that facilitates the collection and aggregation of financial data from various Financial Information Providers (FIPs) and provides it to Financial Information Users (FIUs).

  • Financial Information Provider (FIP)

FIPs are financial institutions or organisations that hold financial data. These could include banks, credit unions, investment firms, and other entities that provide financial services.\

  • Financial Information User (FIU)

FIUs are entities or applications that use the aggregated financial data. They could be financial management apps, credit scoring services, or investment platforms.

How they work

  1. Consent Request: The Account Aggregator APIs first request user consent to access their financial data from Financial Information Providers (FIPs).
  2. User Consent: For an FIU to access data from an FIP, the end-user must provide consent. Users authenticate their accounts and authorise the API to retrieve their information.
  3. Data Collection: Once consent is granted, the APIs connect directly to FIPs to collect financial data, such as account balances and transaction histories.
  4. Data Aggregation: The APIs consolidate data from various FIPs into a unified format, making it easier to manage and analyse.
  5. Secure Transfer: The Account Aggregator APIs ensure the secure transmission of data between FIPs and Financial Information Users (FIUs), using encryption and other security measures to protect sensitive information.
  6. Service Integration: Financial Information Users (FIUs) receive the aggregated data through the API. They leverage this data to provide enhanced financial services, such as budgeting tools, investment analysis, and credit scoring.

Account Aggregator APIs

With Cashfree Payments, you can securely access and aggregate financial data from various accounts and institutions. Utilise our APIs to collect data such as bank account balances, transaction history, investment portfolios, and more, from multiple sources in one place. They simplify the process of connecting to financial institutions by providing a standardised way to retrieve data, making it easier for developers to build applications that involve financial information.

APIDescription
Request ConsentUse this API to request consent from the individual to fetch the financial information.
Get Consent StatusUse this API to get the status of the consent request.
Request Financial InformationUse this API to request the financial information of the consented individual.
Fetch Financial InformationUse this API to fetch the financial information of the consented individual.

Use case scenario

A financial advisory firm, X, offers a digital platform that provides personalised financial planning and investment advice. To deliver accurate and tailored advice to clients, X leverages Cashfree Payments' Account Aggregator APIs to access and aggregate financial data.

Steps involved

  1. Client onboarding

Preethi signs up for X's financial planning service. To create a plan, X requires access to Preethi's complete financial data.

  1. Consent request

X uses Cashfree Payments' Account Aggregator APIs to request Preethi's consent to access her financial data. X specifies what kind of financial information they require in the Request Consent API. The API directs Preethi to authenticate with her bank and other financial institutions to grant permission.

  1. Data collection

Once Preethi provides consent, the Request Financial Information API connects to her various financial accounts and retrieves relevant data such as account balances, transaction histories, income statements, and investment holdings.

  1. Data Aggregation

Cashfree Payments consolidates this data into a standardised format and X can view them using Fetch Financial Information. This allows the firm to view Preethi’s complete financial profile in one place.

  1. Financial Analysis

X’s platform analyses the aggregated data to assess Preethi’s financial health. This includes evaluating her spending patterns, savings, investment performance, and overall financial situation.

  1. Personalised Recommendations

Based on the analysis, X generates tailored financial advice and investment recommendations for Preethi. This might include budgeting strategies, savings goals, investment opportunities, and retirement planning tips.

  1. Client Review and Feedback

Preethi reviews the personalised financial plan and recommendations through X's platform. She can provide feedback, ask questions, and make adjustments to her financial strategy based on the advice received.

Updated 2 months ago