Sunday, October 17, 2021
HomeBusinessFinBox launches Account Aggregator enabled digital lending

FinBox launches Account Aggregator enabled digital lending

FinBox, a Bengaluru and Gurugram-based fintech startup, has become one of the first companies to go live with the Account Aggregator (AA) ecosystem that’s integrated deeply into its user journey. Through its partnership with Finvu, an RBI-licensed NBFC Account Aggregator, FinBox has further strengthened and consolidated its credit intelligence portfolio that already boasts of a robust risk assessment and alternative data decisioning engine. Eight banks, including HDFC Bank, ICICI Bank, and Axis Bank have joined the AA framework. The AA framework allows financial institutions to directly share consumer details with other financial services providers such as lenders or wealth managers with the customer’s consent. Since the data is shared directly, the risk of fake documents gets reduced.

By powering its stack with the AA framework, FinBox will be able to assess and onboard 1 million new loan applicants more accurately in the next quarter, a release issued by the company said. Over the course of the following year, FinBox aims to target 6 million additional potential borrowers using its AA ecosystem, apart from its existing network of partners and lenders.

The AA framework is set to bring convenience to both retail and business borrowers who are increasingly moving towards digital loans through apps and FinTech portals. The ease it enables in data sharing addresses a major pain point plaguing the lending industry as a whole, the release added. Industry numbers show that as many as 70% of potential borrowers seeking a loan drop off the digital lending journey when asked to upload their bank statements or provide scanned copies of the same, it said. Through its AA offering, FinBox aims to bring the drop-off rate down to less than 10%.

“The AA framework promises to bring a radical transformation in India’s lending space. It will allow lenders to assess a wider selection of data points to determine a borrower’s creditworthiness, bringing underbanked sections of the population into the fold of formal lending. Besides, the ease and security with which it enables data sharing will give the lending industry a major boost, with borrowers becoming more willing to share their data with financial institutions.” said Rajat Deshpande, chief executive officer and co-founder of FinBox.

“We’re excited to be working with FinBox to enable the Account Aggregator framework on their platform. Lending is, at its core, a transaction that’s based on trust. And through this partnership, FinBox is set to strengthen and optimize the process of consent-based data sharing – a win for the company and for the borrowers it serves. Finvu is proud to partner and enables yet another cutting-edge technology use case in the FinTech space,” said Munish Bhatia, co-founder, Finvu.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint.
our App Now!!

Source link



Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Recent Comments