Axis Bank starts digital lending through Account Aggregator Framework

September 22, 2022

  • The Bank has been an early investor in the Account Aggregator ecosystem 
  • Live on multiple use cases covering retail and small business customers
  • Available for all citizens of India, including existing and new customers through Axis Bank website or mobile app
  • Secure way of sharing information which has customer consent and data privacy as its core design principles

Axis Bank and Square Yards launches Open Doors, co-branded Home Buyer Ecosystem

Axis Bank, India’s third largest private sector bank, has started lending through the Account Aggregator (AA) Framework. Axis Bank has been an early investor in the Account Aggregator ecosystem, which has helped the Bank to build the tech stack to operationalize its AA framework and offer a seamless customer-friendly experience.

The bank offers personal loans, credit cards, auto loans and small business loans through the account aggregator journey. It provides instant loans that are completely digital and paperless, both for existing and new customers.

Axis Bank is already live on multiple Account Aggregators like Anumati-AA, OneMoney-AA, FinViu–AA, covering retail and SME customers. The Bank’s loan disbursals have increased more than 30% month-on-month since Go–Live on the Account Aggregator framework.

Account Aggregator framework is a powerful proposition which is scaling up rapidly. It provides easy and instant access to financial information of customers in a safe and secure manner. Being able to access this data securely enables the banks to build new customer friendly journeys in Lending, Credit Monitoring and Wealth Management.  The information comes from a trusted source and is completely digital, leading to customer delight and operational efficiencies. 

Key Benefits for the customer:

  • The USP of this framework is that the financial data of a customer, which is spread across multiple banks, insurers, mutual funds and other institutions can now be consolidated under a single digital framework which makes it easily accessible
  • In a regular scenario, there is significant effort involved, wherein the customer has to share their banking data with other banks / financial Institutions using hard copies or pdf documents. However, with AA framework, it’s very easy for customers to share information, either one time or on an ongoing basis only for a defined period. The framework also allows customers to revoke their consent at any point of time  
  • Account Aggregator provides a secure way of sharing information which has customer consent and data privacy as its core design principles. The data shared via AAs is encrypted by the sender Financial Institution (FI) and can be decrypted only by the recipient FI. The end-to-end encryption makes the process much more secure than sharing physical documents

Speaking on this announcement, Sameer Shetty, President & Head – Digital Business & Transformation, Axis Bank, said “In keeping with our OPEN approach, we are delighted to offer instant, digital and paperless loan solutions to all Indians. Now through a simple digital journey, customers can share their bank details with us and get access to loans. Axis Bank believes in the power of ‘OPEN’ Banking and have been investing in digital-first products that reimagine customer propositions. Account Aggregators are entities licensed by the RBI and offer customers a seamless digital journey to share their bank accounts with other regulated entities. We believe this is transformational, as it will improve lending of digital products and help in democratizing access to credit.”

By accessing the AA framework for customers, including those who do not have savings/current accounts with Axis Bank, the Bank can initiate a loan journey through its website or mobile app. During the process, after providing some basic details, the customer will be requested to provide their AA id, validate the same through an OTP and choose the bank account that they would like to share details of. In case the customer does not have an AA id, Axis Bank will help the customer set up one. Once a customer shares her consent, Axis Bank gets the details from the relevant bank account. Thereafter, the loan will be disbursed to the customer digitally and instantly. The overall process of availing loan through the AA framework is simple, convenient, and hassle-free.