The benefits of account aggregation in Open Banking

How does bank account aggregation work?

It has become increasingly common to see third party providers, such as FinTechs, offer apps and software that builds in bank account aggregation. Powered by Open Banking, these companies are able to gain access to users’ financial data with their consent, directly from their bank using account information services. The Consumer Data Right allows them to retrieve financial transaction data, balances and other user-specific banking data, in a safe data environment.

Once the provider gains the user’s consent, they can then use the financial data to create or offer user-specific products and services that are tailored to individual needs. Managing your finances has never been easier, thanks to Open Banking. By having all accounts in one place, this provides a smoother and more accessible customer experience than having to log onto various portals.

While data aggregation is not new, its adoption has heightened recently with the development of the Consumer Data Right legislation, and has been a catalyst for growth for FinTechs wanting to put data at the forefront of their operations. As more innovative and data-driven products and services powered by Open Banking hit the market, businesses would be well-advised to tap into Open Banking to gain a distinct advantage over its competitors.

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