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Dynamic Switch: Enhancing Reliability in the Account Aggregator System

Account Aggregators (AAs) are transforming the way financial information is accessed and shared in India. However, one significant challenge that users and businesses face is the reliability of data retrieval. To address this issue, Finsire offers the Dynamic AA solution, which optimises the chances of successfully obtaining users' financial data by recommending the top three AAs with the highest likelihood of success. Here's how this innovative solution works and why it matters.

The Problem: Reliability in Data Retrieval

While AAs promise a streamlined process for accessing financial information, there is no guarantee that users will get the data they need every time they request it. This inconsistency can be frustrating and can hinder the adoption and effectiveness of the AA framework.

Example: Imagine Meera, a small business owner, trying to apply for a loan. She needs to share her financial data through an AA. However, due to reliability issues, her data request fails multiple times, delaying her loan application process. This experience can be discouraging and may lead her to revert to traditional, more cumbersome methods.

The Solution: Finsire's Dynamic AA

Finsire’s Dynamic AA solution enhances reliability by recommending the top three AAs most likely to succeed in retrieving the required financial data. This recommendation system is built on the integration of the top six AAs, ensuring maximum Financial Information Provider (FIP) coverage, from banks to depositories and RTAs.

Finsire Dynamic AA API offers data from:

How does Dynamic AA Works

The Dynamic AA solution employs a recommendation engine that evaluates several parameters to determine the best AAs for data retrieval. Here are the key factors considered:

• FIP-AA Mapping: The system checks if an AA is integrated with the required FIPs. There is no benefit in recommending an AA that isn't connected to the necessary FIP for the user's data request.
  Example: If Ramesh needs his bank statements from HDFC Bank, the system ensures that the recommended AAs are integrated with HDFC.
• Metrics from Sahamati: Sahamati provides open-source data on the success and failure rates of FIPs. This data helps assess the current health and reliability of each FIP, informing the recommendation engine.
• Hit Rate: This measures the number of successful data retrieval attempts made through AAs within Finsire’s ecosystem. Higher hit rates indicate more reliable AAs.
• Latency: Lower latency means faster data retrieval, improving user experience. The system evaluates how quickly each FIP responds to data requests, recommending those with optimal performance.
  Example: Priya uses an AA to link her account with ICICI Bank. The system recommends AAs with the lowest latency for ICICI, ensuring a smooth and quick data fetch process.

AA side journey for a User

Benefits and Real-World Impact

By implementing the Dynamic AA solution, the success rate of data retrieval has significantly improved, especially for banks.

Example

A major public sector bank we call it here as PSU Bank, has historically struggled with low success rates for account linking and data fetching. Before implementing the Dynamic AA solution, the success rate was below 30%. With the recommendation engine, users trying to link their bank accounts now experience higher success rates and fewer data fetch failures.

Fallback Journey: In cases where data retrieval fails, Finsire provides fallback journeys. These custom AA journeys seamlessly integrate into existing workflows or SDKs for mobile apps, ensuring users have a smooth experience even when primary data fetches fail.

Example: Amit, who faced issues linking his PSU Bank account, now benefits from a fallback journey that ensures his financial data is eventually retrieved, allowing him to proceed with his loan application without significant delays.

The Dynamic AA solution by Finsire addresses the critical issue of reliability in the Account Aggregator system. By leveraging multiple AAs and sophisticated recommendation algorithms, it enhances the chances of successful data retrieval, providing a more reliable and efficient experience for users and businesses alike. This improvement not only boosts confidence in the AA framework but also accelerates its adoption across India, paving the way for more accessible and streamlined financial services.

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Requires license from : Reserve Bank of India (RBI) / Securities and Exchange Board of India (SEBI) / Pension Fund Regulatory and Development Authority (PFRDA) / Insurance Regulatory and Development Authority (IRDAI). Check out for more info

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You can try out API here