banking axis on Thursday said it has started disbursing loans through the Account Aggregator (AA) framework, which allows easy and instant access to customers’ financial information securely.
The country’s third-largest private sector lender has already launched multiple account aggregators such as 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 over 30 per cent month-on-month since it went live on the data-sharing platform.
The bank offers personal loans, credit cards, auto 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 proposition that is expanding rapidly, enabling easy and instant access to customers’ financial information in a secure manner.
For customers, the AA framework is a great enabler as their financial information spread across multiple banks, insurers, mutual funds and other institutions is consolidated under 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 banking details with us and get access to loans. Account aggregators are entities authorized by the RBI and offer customers a seamless digital journey to share their bank accounts with other regulated entities.
“We believe this is transformative as it will improve lending of digital products and help democratize access to credit,” Shetty said.