- Whitepaper ‘Building Trust for Digital Ecosystems’
- Brochure ‘Supporting digital transformation in banking’
- Reinventing Retail Banking
- Transforming Financial Services
- Article ‘7 reasons why digital ecosystems are the future of retail banking’
- Brochure ‘Securing the microservices ecosystem’
- Blog article ‘Building your third-party ecosystem, fast and secure’
Financial Aggregation is a win-win for both banks and customers
Do you find it strange that you can consult the balance of your account via a competing bank in your standard banking app? Open banking and financial aggregation or bank account aggregation are the terms to remember, as this is just the beginning of how financial aggregation and digital banking ecosystems are set to change the face of banking.
- What financial aggregation means
- What types of financial aggregation are there?
- What are the advantages of financial aggregation for the bank and the consumer
- What the role of open banking is in financial aggregation
- How Identity and Access Management plays a key role in enabling financial aggregation
- Why TrustBuilder Identity Hub is your best choice in securing financial aggregation
What is financial aggregation?
Not only will you find the principle of financial aggregation in your bank accounts, you may also encounter it in the software you are using to manage your personal finance or in other online tools.
What types of financial aggregation are there?
- Account information services: this is the ‘basic’ form of financial aggregation and allows the customer to get all the information in one place: account balance, credit cards, pension plans, morgagesmortgages, etc.
- Payment initiation services go a lot further and allows the consumer to also make payments from accounts at different banks, from their preferred financial app.
What are the advantages of financial aggregation?
Advantages of financial aggregation for the customerThe main benefit of financial aggregation for consumers is the ability to get a clear overview of their financial situation. By combining accurate real-time information on the balance of their current account and what credit card bills or loan payments are coming, the consumer knows exactly what amount remains until the next paycheck. Knowing what payments are due, the consumer can ensure there will be no overdraft on an account, leading to expensive interest payments. Consumers that hold accounts at multiple banks, can easily move money from one account to another to keep all balances positive. At the same time, they can analyze their spending patterns on the different accounts.
Advantages of financial aggregation for the bankRetail banks also see the advantage of offering financial aggregation to the customer. Banks are forever improving their mobile apps to improve customer experience. That’s why retail banks are building out digital ecosystems of financial and non-financial services: the more time a consumer spends in the banking app, the higher their fidelity to the bank. By offering customers convenience and a wide range of services, banks are turning themselves into a one-stop-shop at defining moments in their customers’ lives.
What is the role of open banking in financial aggregation?
What is the role of Identity and Access Management in financial aggregation?
Why is TrustBuilder Identity Hub your best choice in securing financial aggregation?
TrustBuilder provides optimal API security for financial aggregationAs the connections between banks and third parties are built as APIs, there is an increasing/(or: a growing) demand to secure these APIs. The ability to control API access is the cornerstone of effective API and microservice security, and key to establishing trust in financial aggregation. Contrary to other IAM systems that only secure the edge of an API ecosystem, TrustBuilder Identity Hub also takes care of the security between the different apps in the financial service system. TrustBuilder Identity Hub addresses security of these APIs on an individual level, authenticating identity and user privileges at each hop.
TrustBuilder ABAC and Workflow Engine
To ensure the security of the connection from one bank to another bank using APIs, TrustBuilder uses attributes to elevate the security. Our Access-based Access Control (ABAC) system allows the creation of attributes of any data field within the source and target databases. With the help of our visual workflow engine, rules can be set up to fetch specific attributes (data) at the time required, without the need to store this data in the target app.
This allows a financial aggregator to retrieve the complete data of financial attributes from the source financial institution. Once consumers have categorized their financial transactions at the source bank, these values can be transferred and mapped to the values of the financial aggregator, making it even easier for the consumer to choose the best financial app for their needs with a minimum amount of work. Fetching these attributes can be done at the exact moment that the user is requesting it in the financial app, so the data will always be accurate. It also eliminates the need to store this data at the financial aggregator, which makes GDPR compliancy easier.
TrustBuilder shortens time to market for financial aggregation
TrustBuilder Identity Hub comes with a large set of predefined connections to Identity Providers and Service Providers and supports many different authentication methods and protocols. This makes it easy for an IT department to add new services quickly. A graphical user interface assists system administrators in configuring the customer journey and deploying the new service faster than the competition.