Axis Bank on Thursday said it has started disbursing loans through the Account Aggregator (AA) framework, which enables easy and instant access to customers’ financial information in a secure manner.
The country’s third largest private sector lender has already gone live with several account aggregators such as Anumati-AA, OneMoney-AA and FinViu-AA, covering retail and SME customers.
One of the first investors in the AA framework, Axis Bank’s loan disbursements have increased by more than 30 percent month-on-month since it went live on the data exchange 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 in a completely digital and paperless manner.
AA is a powerful proposition that is rapidly expanding and enables easy and instant access to customers’ financial information in a safe and 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 into a single digital framework, making it easily accessible.
Sameer Shetty, president and head of 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 bank details with us and get access to loans. Account aggregators are RBI-authorised entities 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 digital product lending and help democratize access to credit,” Shetty said.
