Axis Bank to start digital lending based on Account Aggregator Network

23 Sep 2022 , 08:25 AM

Axis Bank, a private sector lender, announced on Thursday that it has begun using the Account Aggregator (AA) Framework for lending.

Through the account aggregator journey, the bank provides small business loans, credit cards, auto loans, and personal loans. For both existing and new consumers, it offers quick loans that are entirely digital and paperless.

Axis Bank currently supports retail and SME customers on a number of Account Aggregators, including Anumati-AA, OneMoney-AA, and FinViu-AA. Since Go-Live on the Account Aggregator framework, the Bank’s loan disbursals have surged by more than 30% month over month, the bank reported.

According to Sameer Shetty, President and Head of Digital Business & Transformation at Axis Bank, “In keeping with our OPEN strategy, we are thrilled to offer immediate, digital, and paperless loan solutions to all Indians.” “Now, customers can share their bank information with us and receive loans through a straightforward digital process. Axis Bank has been investing in digital-first products that rethink client propositions because it believes in the power of “OPEN” Banking.

The RBI issues licenses to organizations known as “Account Aggregators” that give clients a frictionless digital experience while sharing their bank accounts with other regulated organizations. The framework has been rapidly expanding and offers quick, simple access to consumers’ financial information in a secure environment.

The banks are able to create innovative, customer-friendly lending, credit monitoring, and wealth management experiences because of their safe access to this data.

The USP of this framework is the ability to consolidate a customer’s financial data, which was previously dispersed among numerous banks, insurance, mutual funds, and other institutions, into a single digital framework that facilitates easy access.

When a customer shares their banking information with other banks or financial institutions via paper copies or PDF documents, there is typically a large amount of work involved.

However, this framework offers a safe means of exchanging information, and its fundamental design tenets are client permission and data protection.

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