The Next Level of Banking: Account Aggregator Data and PFM Tools Redefining Customer Engagement

Wilfred Sigler
Senior Director, CRIF India and South Asia

The customer journey starts when a customer and a company make their first contact. To "create customer delight," which involves surpassing customer expectations and leaving an overall positive impact, businesses must utilise the various points of engagement that occur throughout the customer's journey.

Regardless of the type of company-customer interaction, establishing brand identity and fostering loyalty is essential. This can be achieved by transforming data into valuable insights and delivering meaningful benefits at each point of interaction.

In an increasingly interconnected financial landscape, individuals are faced with the challenge of managing their multifaceted financial lives efficiently. The confluence of account aggregator data and personal finance management (PFM) tools has emerged as a transformative solution, revolutionising the way customers interact with their financial information. In this blog, we delve into the dynamic relationship between account aggregator data and PFM tools, illustrating how their synergy is poised to redefine customer experiences in the financial sector.

Understanding Account Aggregators

Account Aggregators (AA)

: Account Aggregators are intermediaries that facilitate the secure and seamless sharing of financial data between various financial institutions and authorised third parties with the user's explicit consent. They enable individuals to aggregate their financial information from multiple accounts across different banks, insurance companies, mutual funds, GST, and other financial service providers into a single platform. This aggregated data includes account balances, transaction histories, investment portfolios, insurance policies, and other financial assets.

Empowering Financial Management Through the PFM Tool

PFM tools such as CRIF PFM empower individuals to navigate their financial journey with precision. With functionalities like budget tracking, spending analysis, goal setting, investment insights, and financial forecasting, it provides customers with actionable insights by utilising algorithms and data analytics to optimise their financial decisions, help customers to make well-informed decisions, optimise spending behaviours, and proactively work toward their financial goals.

The Synergy: How Account Aggregator Data Enhances PFM Tools

When combined, these sources of data can provide a comprehensive view of an individual's financial situation. Here's how the integration of data from account aggregators and personal finance management can enhance customer experience:

• 360-Degree Financial View: By integrating account aggregator data, your customers gain access to a holistic snapshot of their financial health. For instance, they can see cash flow, investments, and spend analysis all in one place.

• Personalised Financial Recommendation: Armed with a wealth of data, PFM tools provide your customer with hyper-personalised insights on their cash flow health. Leveraging the AA data, banks can offer tailored financial recommendations to their customers. "For example, when a customer consistently incurs substantial expenses for car maintenance, our tool can provide a thoughtful recommendation by offering them a pre-approved car loan to consider purchasing a new vehicle.

• Develop targeted marketing campaigns: Banks can use AA data and bank PFM tools to develop targeted marketing campaigns that are tailored to the specific needs of consumers. For example, a bank offers discounted travel insurance, foreign currency exchange deals, or a travel card to a travel enthusiast who travels frequently.

• Cross-sell, Upsell and early delinquency Prevention: Data empowers PFM tools for cross-selling and upselling. By analysing consumer spending habits, these tools can recommend tailored financial products and services. They also use data to detect early delinquency signs, alerting users to potential financial challenges and ultimately enhancing their financial well-being. For instance, if a user frequently shops at a specific online store, the tool might suggest a co-branded credit card offering rewards for those purchases.

Let's consider an example to illustrate the transformative impact of combining account aggregator data and PFM tools.

“Ajay, a marketing professional, utilises an account aggregator platform provided by his bank that consolidates his savings, investments, insurance, etc. Upon integrating the account aggregator data with the bank's customised PFM tool, Ajay experienced significant advantages. The tool analyses his spending habits, helping him identify areas where he can save more effectively. The PFM tool supports Ajay in forecasting potential cash flow shortages, including EMI due dates and investment planning. Furthermore, it assesses his investment portfolio and recommends adjustments to align with his financial objectives.”

As the banking industry embraces this synergy, it is set to usher in a new era of customer-centric financial services that empower individuals to make informed decisions and secure their financial future.

The CRIF Advantage

At CRIF, our core expertise lies in the seamless integration of data, aggregation, and crafting of highly personalised insights. This unique blend forms the cornerstone of our success and serves as our key differentiator in the market. We excel at collecting, organising, and analysing data from various sources, transforming it into actionable insights.

What sets us apart is our ability to create hyper-personalised insights tailored to each individual's or organisation's specific needs. This level of customisation empowers our clients with the knowledge they require to make informed decisions, improve processes, and achieve their goals more efficiently.

In a world inundated with data, our commitment to delivering these laser-focused insights positions us at the forefront of innovation and problem-solving in today's data-driven landscape.

Discover how CRIF Connect, as an account aggregator, can provide your customers with the ability to securely manage and share their financial data, putting them in control, and how CRIF’s PFM tools can help you redefine customer engagement with your customers.