Axis Bank announced on Thursday that it has started issuing loans through the Account Aggregator (AA) framework, which provides easy and instant access to customers’ financial information in a secure manner.
The third largest private sector lender in the country has already commissioned several account aggregators like Anumati-AA, OneMoney-AA and FinViu-AA, covering retail and SME customers.
An early investor in the AA framework, Axis Bank’s loan disbursements have increased by more than 30% month-on-month since the data-sharing platform went live.
The bank offers personal loans, credit cards, car loans and small business loans through the account aggregation system, Axis Bank said in a statement.
The lender said that instant loans can be obtained completely digitally and paperless.
AA is a powerful and rapidly evolving proposition enabling easy and instant access to customer financial information in a safe and secure manner.
For customers, the AA framework is a great enabler because their financial information spread across multiple banks, insurers, mutual funds and other institutions is consolidated into a single digital framework, making it easily accessible.
Sameer Shetty, President and Head – Digital Business and Transformation, Axis Bank, said that in line with the bank’s open approach, it can offer instant, digital and paperless lending solutions to customers.
“Customers can share their bank details with us and gain access to loans. Account aggregators are RBI-licensed entities and provide customers with a seamless digital journey to share their bank accounts with other regulated entities.
“We believe this is transformative because it will improve digital product lending and help democratize access to credit,” Shetty said.
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