Account Aggregator

Industry-wise
playbook
 Index

BANKING

1.1
Credit risk assessment
3

1.2
Loan monitoring 
5

1.3
Personal Financial Management (PFM) for Banks
7

1.4
KYC and 60-second onboarding 9

Lending (Non-Bank)

2.1
Personalised loan products
10

2.2
Loan monitoring 
12

2.3
KYC and 60-second onboarding
14

2.4
Loan against securities
15

2.5 MSME financing and underwriting

17

PPI (Wallets & Pre-paid Cards)

3.1
Enhanced merchant onboarding
18

3.2 Auto-reload feature 19

Securities and PERSONAL FINANCE MANAGEMENT

4.1
Investment advisory
20

4.2
F&O activation
22

4.3
KYC and 60-second onboarding
24

4.4
Portfolio optimisation (for Portfolio Management Services & AIFs)
25

4.5
Comprehensive financial planning & wealth tracking
26

4.6
Financial analysis and research 
27

4.7 Investment advisory 28

INSURANCE

5.1
Insurance underwriting
29

5.2
KYC and 60-second onboarding for insurance 
30

5.3
Strengthening verification process and reducing frauds
31

5.4 Claims processing and payouts current process

32
 This comprehensive guide was Detailed insights accompany each
written to highlight the multifaceted use case, the benefits it offers, and the
applications of the Account Aggregator methodologies involved. The AA
(AA) infrastructure across a range of ecosystem, by enabling secure and
industries and regulated entities in the consent-based financial data sharing,
financial services domain. 

opens up a world of possibilities for

personalised financial services,
The AA framework, a big component enhanced credit assessments, and
of India’s digital financial landscape, is innovative product offerings. This
reshaping the dynamics of data sharing playbook delves into specific scenarios
and utilisation in the financial sector. across various sectors, including
Recognising the innovative nature of banking, insurance, investment, and
this digital infrastructure and even non-financial companies that
acknowledging the diverse levels of stand to benefit from enriched financial
familiarity and understanding across data insights.

industries, this playbook presents an

extensive array of use cases. 

 BANKING

1.1 Credit risk assessment

Description

In the realm of banking, the financial data points, including

Account Aggregator (AA) framework is account balances, loan histories,

changing the approach of credit risk investments, and spending patterns.

assessment. By leveraging AA, banks Such a detailed overview goes beyond

can access a more granular and traditional credit scoring methods,

comprehensive view of a customer’s offering a multi-dimensional

financial health. This is achieved perspective of a borrower’s financial

through an in-depth analysis of various stability and creditworthiness. 

Ram Kumar
1 1
98 0 9837 1
Customer credit profile Savings A c /

Average EOD balance Fraud checks

Last 7 days Last 30 days Last 3 months Last 6 months Custom date range

₹90,000
Identified fraud indicators — 4
₹83,630.30

₹80,000 ₹76,615.30 ! q
1 che ue bounce

₹70,000 ₹65,862.80
! Irregular salar y credits
₹60,000
₹51,750
! Immediate big debit after salar y credit
₹50,000
! Large cash transactions
₹40,000
₹31,360.80

₹30,000

₹19,862.80
Passed fraud indicators — 14
₹20,000

No negative EOD balance

₹0
Jan ‘22 Feb ‘22 Mar ‘22 Apr ‘22 May ‘22 Jun ‘22 See more passed indicators

FOI R percentage
See analytics for Last 7 days Last 3 months Custom date range

>60%

1
₹ ,50,000 60 %

1
₹ ,25,000 50 %

1
₹ ,00,000 40 %

₹75,000 30 %

₹50,000 20 %

₹25,000 10%

Jan Feb Mar Apr May Jun

Inflow Outflow FO IR %

x
E pense summar y
See analytics for Last 7 days Last 30 days Last 3 months Custom date range

3
EMI
68.8 % Detailed breakdo wn of expenses

EMI Utility payments

 Account Aggregator Playbook

Benefit
Enhanced risk profiling: The AA of data points, banks can extend
framework enables banks to credit to customers who might
conduct a more precise risk have been overlooked by
assessment. By having access to a traditional credit scoring models.
broader range of financial data, This includes individuals with
banks can identify potential risks limited credit history but a healthy
and make more informed lending financial profile, as revealed by
decisions. their banking and transaction data.

Accelerated loan processing: With Fostering transparency: The AA

the AA system, the process of framework promotes a transparent
gathering and analysing financial financial environment where
data is significantly streamlined. customers have control over their
This acceleration in data data. This transparency builds trust
processing leads to quicker loan and encourages customers to
approvals, benefiting both the bank share their data, knowing it will be
and the customer. used in a secure and consent-
based manner.
Improved underwriting quality:
The depth and breadth of financial Enhanced customer experience:
data available through AA allow for By understanding the customer’s
a more nuanced underwriting financial situation more thoroughly,
process. Banks can now underwrite banks can offer products and
loans with a higher degree of services that are better aligned
accuracy, reducing the likelihood of with individual needs and
defaults circumstances. This personalised
approach not only improves
Expanding credit access: By customer satisfaction but also aids
utilising a more comprehensive set in customer retention and loyalty.

4
 BANKING

1.2 Loan monitoring

Description

The Account Aggregator (AA) monitoring allows for the early

framework also significantly enhances identification of any anomalies or

the capabilities of banks and lenders in potential risks in loan accounts, such

the realm of loan monitoring. This use as delayed payments or unusual

case involves the continuous and transaction patterns. The ability to

proactive monitoring of loan accounts. detect such issues promptly enables

By leveraging AA, banks can effectively banks to manage loans more

track payment histories, account proactively and take necessary actions

balances, and financial transactions of to prevent NPAs.

borrowers. This continuous

Ram K umar
981 1 98371
0

Repayment monitoring report Savings A/c

Alerts

Possible bounce of NACH Recommendation

!

Balance less than EMI Re-attempt NACH debit

EMI to debit on 26th April, 2023

Ideal re-NACH date

₹ 23,450 29 April 2023

Balance on 24th April, 2023

x
E pected balance on 2 9th April, 2023

₹ 15,433 ₹ 35,433

Past EM I payments

L ast 7 days L ast 3 0 days L ast 3 months L ast 6 months Custom date range

₹8 0,000
₹72,722 ₹72,262 ₹72,722
₹66,622
₹7 0,000

₹ 60,000

₹5 0,000
₹40,011

₹ 40,000

₹3 0,000
₹24,121

₹ 20,000

₹ 0
Jan 22 ‘ F ‘
eb 22 Mar 22 ‘ Apr 22‘ ‘
May 22 J
un 22‘

FO IR per c entage o f last 6 mont h s

₹3 .00,000
%
Current month >5 %0
60

₹ 5 2, 0,000
5 5 %
0

₹ 2,00,000
40 %

₹1 5, 0,000
3 %
0

₹1 ,00,000
20 %
 Account Aggregator Playbook

Benefit
Early detection of default risks: By Strengthened customer
continuously monitoring loan relationships: Proactive loan
accounts, banks can identify signs monitoring facilitates timely
of potential default early on. This communication and support to
early detection is crucial in customers. By engaging with
mitigating risks and implementing customers at early signs of
appropriate measures to prevent financial stress, banks can provide
loan defaults. guidance and assistance,
potentially helping customers avoid
Improved portfolio health: Regular default and strengthening the
monitoring and analysis of loan overall customer relationship.
data contribute to the overall
health of the bank’s loan portfolio. Enhanced collections through
It allows for the identification of recurring data fetches: Setu’s
risk patterns and trends, enabling integration with the AA framework
banks to make data-driven includes a dual consent
decisions to maintain a healthy mechanism, which not only aids in
portfolio better underwriting but also
improves the collections process.
Customised risk management By enabling recurring data fetches,
strategies: With access to real-time lenders can maintain an up-to-date
data, banks can develop more view of the borrower’s financial
customised and dynamic risk situation, allowing for more
management strategies. This effective and informed collection
tailored approach ensures that risk strategies.
mitigation efforts are more
effective and aligned with the
specific characteristics of each
loan account.

6
 BANKING

1.3 Personal Financial Management for Banks

Description

The integration of Personal engagement engine, which is

Financial Management (PFM) tools instrumental in instant account

within banking services, powered by opening processes for savings

the Account Aggregator (AA) accounts, fixed deposits, personal

framework, represents a significant loans, and credit cards. By leveraging

leap in customer engagement and the AA system, banks can gain a

cross-selling strategies. This use case comprehensive understanding of their

revolves around utilising AA to customers’ financial behaviours and

facilitate an advanced cross-sell and preferences. 

7
 Account Aggregator Playbook

BENEFIT
In-depth customer insights: Banks Enhanced customer engagement:
can gain detailed insights into their By integrating PFM tools into their
customers’ income and expense mobile and web applications, banks
patterns through the AA can offer more personalised and
framework. This data is invaluable engaging user experiences. These
in understanding the financial tools can provide customers with
habits and needs of customers. valuable insights into their financial
health, budgeting, savings, and
Affluence level assessment: The investment opportunities, thereby
comprehensive financial data increasing engagement and loyalty.
available allows banks to assess the
level of affluence of the customers. Needs-based product offerings:
This assessment is crucial in The AA framework enables banks
tailoring financial products and to identify specific financial needs
services that match customer’s and goals of their customers,
financial status and needs allowing for the offering of
products and services that are
Targeted cross-selling: With a genuinely relevant and beneficial to
deeper understanding of them.
customers’ financial situations,
banks can cross-sell relevant
products more effectively. For
instance, a customer with a
growing savings account balance
might be a prime candidate for
fixed deposit offers, while someone
with a high transaction frequency
in travel might benefit from a credit
card with suitable rewards.

8
 BANKING

1.4 KYC and 60-second onboarding

Description
The KYC and 60-second Improved customer experience:
onboarding use case leverages the The quick and hassle-free
Account Aggregator (AA) framework onboarding process greatly
to revolutionise the customer improves the customer
onboarding process in banking. This experience, making it more likely
approach streamlines the onboarding for new customers to complete
experience, making it swift and user- the onboarding process.
friendly, while ensuring compliance
and security. The process integrates
several key steps in KYC like bank
account verification, bank statement
data via AA, PAN verification, and
credit bureau checks.

BENEFIT
Speedy onboarding: This
streamlined process reduces
onboarding time dramatically,
creating a 60-second onboarding
experience that is highly efficient.

Enhanced fraud detection: By

integrating multiple checks and
verifications, the process
significantly enhances the ability
to detect and prevent fraud.

9
 Lending (Non-Bank)

2.1 Personalised loan products

Description
In the landscape of personal offerings that are precisely tailored to
lending and NBFCs, the ability to offer the financial status and needs of each
personalised loan products is a game- individual borrower. This approach
changer. By leveraging the Account moves beyond the one-size-fits-all
Aggregator (AA) framework, these model, allowing for more nuanced and

financial institutions can create loan customer-focused product creation.

Ram Kumar
98101 98371
Customer credit profile Savings A/c

Average EOD balance Fraud checks

Last 7 days Last 30 days Last 3 months Last 6 months Custom date range

₹90,000 Identified fraud indicators — 4

₹83,630.30
₹80,000 ₹76,615.30 ! 1 cheque bounce
₹70,000 ₹65,862.80 ! Irregular salary credits
₹60,000
₹51,750 ! Immediate big debit after salary credit
₹50,000
! Large cash transactions
₹40,000
₹31,360.80
₹30,000
Passed fraud indicators — 14
₹19,862.80
₹20,000
No negative EOD balance
₹0
Jan ‘22 Feb ‘22 Mar ‘22 Apr ‘22 May ‘22 Jun ‘22 See more passed indicators

FOIR percentage
See analytics for Last 7 days Last 3 months Custom date range

>60%

₹1,50,000 60%

₹1,25,000 50%

₹1,00,000 40%

₹75,000 30%

₹50,000 20%

₹25,000 10%

Jan Feb Mar Apr May Jun

Inflow Outflow FOIR %

Expense summary
See analytics for Last 7 days Last 30 days Last 3 months Custom date range
10
EMI
68.8% Detailed breakdown of expenses
 Account Aggregator Playbook

BENEFIT
Accurate targeting: With access Data-driven decision making: The
to detailed financial data, lenders use of AA data enables lenders to
can accurately target potential make informed decisions based on
borrowers with loan products that accurate and up-to-date financial
are specifically suited to their information, reducing reliance on
financial circumstances. This less precise traditional methods.
targeting not only increases the
likelihood of loan acceptance but Dynamic product adjustment:
also enhances the relevance of Lenders can continuously refine
the products offered. and adjust their loan products
based on ongoing data analysis,
Reduced default rates: ensuring that their offerings remain
Personalised loan products take relevant and attractive to potential
into account the borrower’s ability borrowers.
to repay, leading to more
responsible lending. By aligning Risk assessment and management:
loan terms and amounts with the By having a comprehensive
borrower’s financial capacity, understanding of each borrower’s
lenders can significantly reduce financial situation, lenders can
the risk of defaults better assess and manage risk,
tailoring their risk mitigation
Increased customer satisfaction: strategies accordingly.
Tailoring loan products to
individual financial needs and
capacities leads to higher
customer satisfaction. They are
more likely to feel valued and
understood, fostering loyalty and
leading to business and referrals.
11
 Lending (Non-Bank)

2.2 Loan monitoring

Description
Similar to the banking sector, Enhanced customer engagement:
personal lenders and NBFCs greatly This process also opens avenues
benefit from the consistent for engaging with customers,
observation of loan accounts for especially those who might be
effective risk management, a use case facing financial difficulties, allowing
previously elaborated in the banking lenders to offer support or
context. Utilising the AA framework, restructuring options proactively.
these institutions can continuously
monitor the financial behaviour of
their borrowers, ensuring a proactive
approach to risk management.

BENEFIT
Timely risk detection: Continuous
monitoring allows for the early
detection of potential risks, such as
delayed payments or deteriorating
financial health, enabling lenders to
take preemptive action.

Maintaining lending quality:

Regular observation of loan
accounts helps in maintaining the
overall quality of the lending
portfolio, ensuring that it remains
healthy and profitable.

12
 Account Aggregator Playbook

Ram Kumar
98101 98371
Repayment monitoring report S v a ings A/c

Alerts

Possible bounce of NACH Recommendation

!
Balance less than EMI Re-attempt NACH debit

EMI to debit on 26th April, 2023

Ideal re-NACH date

₹ 23,450 29 April 2023

Balance on 24th April, 2023

Expected balance on 29th April, 2023

₹ 15,433 ₹ 35,433

Past EMI payments

Last 7 days Last 30 days Last 3 months Last 6 months Custom date range

₹72,722 ₹72,722
₹80,000 ₹72,262

₹66,622
₹70,000

₹60,000

₹50,000 ₹40,011

₹40,000

₹24,121
₹30,000

₹20,000

₹0 Jan ‘22 Feb ‘22 Mar ‘22 Apr ‘22 May ‘22 Jun ‘22

FO IR percentage of last 6 months

₹3.00,000 60%
Current month >50%

₹2,50,000 50%

₹2,00,000 40%

₹1,50,000 30%

₹1,00,000 20%

₹50,000 0%
1

Nov D ec Jan F eb Mar Apr

Inflow O utflow FO IR %

Income details of current month

Refunds 13
etailed breakdown of income
0.3%
Rental income D
8.4%

S alary Transfers
 Lending (Non-Bank)

2.3 KYC and 60-second onboarding

Description
Echoing the KYC and 60-second Improved customer experience:
onboarding process outlined in the The quick and hassle-free
banking sector, personal lenders and onboarding process enhances the
NBFCs can implement a swift and overall customer experience,
efficient onboarding process using the encouraging more sign-ups and
Account Aggregator (AA) framework. fostering trust
This approach streamlines the
customer’s entry into the financial Onboarding process: The process
system, emphasising speed, security, involves eKYC, RPD, integration
and compliance. with AA for data aggregation, PAN
verification, and credit bureau
BENEFIT checks, similar to the banking
Speedy onboarding: The process sector’s approach.
facilitates a rapid onboarding
experience, typically under 60
seconds, through streamlined data
collection and verification

Enhanced Fraud Detection:

Incorporating multiple layers of
verification, including eKYC, RPD
(Risk Profiling and Due Diligence),
and PAN verification, significantly
bolsters fraud detection
capabilities.

14
 Account Aggregator Playbook

2.4 Loan against securities

Description
The Loan against securities use Dynamic collateral monitoring:
case represents a significant The continuous monitoring of the
innovation in lending, made possible securities under lien throughout
through the integration of the the loan period allows lenders to
Account Aggregator (AA) framework. dynamically assess their risk
This approach allows lenders to offer exposure. If the value of the
loans secured against a borrower’s securities drops below a certain
investment portfolio, including threshold, lenders can also set
equities and mutual funds, with a notifications to take proactive
swift and secure onboarding process. measures
The key advantage here is the ability
to continuously monitor the value and Enhanced loan structuring: With
status of the securities that are held detailed insights into the
as collateral, ensuring a dynamic and borrower’s financial situation and
responsive lending approach. the value of their securities,
lenders can structure loans more
BENEFIT effectively. This might involve
Comprehensive risk assessment: adjusting loan-to-value ratios,
For the first time, lenders can interest rates, or repayment terms
create a loan against securities with based on the specific details of
a complete view of the associated each case.
risks. This includes not only the
borrower’s financial capacity to Streamlined onboarding process:
repay the loan but also the real- The use of AA for data aggregation
time value and stability of the streamlines the onboarding
securities offered as collateral. process, making it faster and more

15
 Lending (Non-Bank)

efficient. This is particularly efficient loan process and the

beneficial in the context of loans potential for more favourable loan
against securities, where timely terms, based on a clearer
execution can be crucial. understanding of their financial
situation and the value of their
Improved customer experience: securities.
Borrowers benefit from a more

16
 Account Aggregator Playbook

2.5 MSME financing and underwriting

Description
The MSME financing and offering more customised financing
underwriting use case is pivotal for options, lenders can significantly
MSME lenders and NBFCs focused on contribute to the growth and
this sector. Leveraging the Account sustainability of MSMEs. Tailored
Aggregator (AA) framework, these financial solutions can address the
financial institutions can access in- specific challenges and
depth business financial statements, opportunities faced by these
transaction histories, and tax returns businesses.
of MSMEs. This comprehensive
financial data enables lenders to offer Enhanced access to capital:
financing solutions that are precisely Understanding the unique financial
tailored to the unique needs and needs and profiles of MSMEs
circumstances of each MSME. allows lenders to design more
accessible and appropriate capital
BENEFIT offerings. This enhanced access is
Simplified credit evaluation: The crucial for MSMEs, which often
AA framework streamlines the face challenges in securing funding
credit evaluation process by through traditional banking
providing easy access to a wealth channels.
of financial data. This simplification
reduces the time and effort
required for loan processing,
making it more efficient

Supporting MSME growth: By

reducing borrowing barriers and

17
 PPI (WALLETS & PREPAID CARDS)

3.1 Enhanced merchant onboarding

Description
In the domain of PPI, including significantly improves the ability to
wallets and prepaid cards, the use detect fraudulent merchants,
case of enhanced merchant thereby protecting the PPI
onboarding is crucial for managing risk ecosystem.
and ensuring compliance. This process
involves a swift onboarding procedure Improved customer experience: A
that incorporates several checks to quick and efficient onboarding
assess if a new merchant poses a high process enhances the overall
risk or shows indications of potential experience for new merchants,
fraud. The Account Aggregator (AA) encouraging more sign-ups and
framework plays a pivotal role in fostering trust in the platform.
streamlining this process while
maintaining a high standard of risk
assessment.

Benefit
Speedy onboarding: The
integration of AA with eKYC, bank
account verification, and PAN
verification processes allows for a
rapid onboarding experience,
typically completed within 60
seconds

Enhanced fraud detection: The

multi-layered verification process

18
 Account Aggregator Playbook

3.2 Auto-reload feature

Description

The auto-reload feature for PPIs insufficient wallet balance, thereby

represents a significant advancement enhancing the reliability of the

in enhancing user convenience and service.

operational efficiency. By integrating

the Account Aggregator (AA) Zero-effort reload for customers:

framework with UPI Auto-pay, PPI Customers benefit from the

providers can offer a smart and convenience of not having to

automated wallet reloading service. manually reload their wallets,

This feature is designed to maintain making for a seamless payment

an optimal balance in the user’s wallet experience

by automatically reloading it from

their linked bank account, based on Simple onboarding: The process of

predefined criteria and thresholds. setting up the auto-reload feature

is straightforward, encouraging

more users to opt-in for this

Benefit service.

Higher revenue and float potential:

By ensuring that wallets are always

sufficiently funded, PPI providers

can see an increase in transaction

volumes and float revenue

Prevents Auto-Pay failures: Auto-

reloading helps in avoiding

transaction failures due to

19
 SECURITIES & PFM

4.1 Investment advisory

Description
In the realm of stock brokerage, the investment advice. This service utilises
use case of investment advisory is an individual’s comprehensive
increasingly vital. Leveraging the investment portfolio, savings, and
Account Aggregator (AA) framework, income data to craft investment
stock brokers can access a wealth of strategies that are in line with their
financial data to provide personalised financial goals and risk tolerance.

Suresh
Financial data analysis

Expense summary

Bank charges
0.6%
Cash withdrawals Detailed breakdown of expenses
8.0%

EMI Utility payments

₹18,000 ₹19,800
Utility payments
Investments
16.0% 39.5% Investments Cash withdrawals

₹8,000 ₹4,000
Bank charges

₹300
EMI
35.9%

Investment categories Investment types

Cash
FMCG Gold 5%
10% 5%

Pharma Equities
Materials and
Mining 25% 15%
15%

Mid Cap
10%

Consumer durables Small Cap

Finance 20% 50%
15%
Large Cap
20%
IT/ITES
15%

W ealth split
Cash
5%
20
 Account Aggregator Playbook

BENEFIT

Real-time financial health Improved client retention:

summary: An Integration with Personalised and effective

Setu’s AA enables investment investment advice leads to

advisors, wealth managers, and increased client satisfaction and

banks to present customers with loyalty, which is crucial for client

an up-to-date summary of their retention in the competitive field of

financial health, including investment advisory.

spending patterns, investments,

and other key financial metrics Benchmarking investments:

Advisors can benchmark their

Personalised investment services: clients’ investments against

By having access to industry standards, Asset

comprehensive financial data, Management Companies (AMCs),

advisors can tailor their services to and relevant indexes, providing

align precisely with each clients with a clear understanding

individual’s financial profile. This of their investment performance

personalisation ensures that relative to broader market trends

investment advice is relevant,

practical, and achievable Risk assessment: The AA

framework allows for a detailed risk

Informed investment decisions: score based on the client’s fund

The depth and breadth of financial allocation across different

data available support more investment instruments. This risk

informed and well-reasoned profiling helps in aligning

investment decisions, helping investment strategies with the

clients to navigate the client’s risk appetite.

complexities of the financial

markets with greater confidence. Check out our demo for Upstox

21
 SECURITIES & PFM

4.2 F&O activation

Description
The F&O activation use case is a making it quicker and more
critical function for stock brokers, reliable. This is particularly
enabling them to offer their clients the important for F&O trading, where
ability to trade in Futures & Options. financial credibility is crucial.
This process involves a thorough
analysis of the client’s trading history, Income verification: Verifying the
risk profile, and available capital to client’s income is a key step in
ensure they are well-suited for the assessing their suitability for F&O
complexities and risks associated with trading. The AA framework
F&O trading. By leveraging the Account facilitates this by providing
Aggregator (AA) framework, brokers accurate and up-to-date salary
can streamline this activation process, information.
making it more efficient and secure.

BENEFIT
Real-time risk management: The
AA framework allows for real-time
monitoring and management of
risk, ensuring that clients are
trading within their capacity and
that their portfolio is aligned with
their risk tolerance

Seamless account verification:

The integration of AA simplifies
the account verification process,

22
Account Aggregator Playbook

23
 SECURITIES & PFM

4.3 KYC and 60-second onboarding

Description
Following the precedent set in the Improved customer experience: A
banking and NBFC sectors, stock quick and hassle-free onboarding
brokers can also implement a swift process enhances the overall
and efficient KYC and 60-second customer experience, encouraging
onboarding process using the more sign-ups and fostering trust.
Account Aggregator (AA) framework.
This streamlined approach is
designed to quickly and securely
onboard clients, enabling them to
start trading in the shortest time
possible while ensuring compliance
with regulatory requirements.

BENEFIT
Speedy onboarding: The process
facilitates rapid onboarding,
typically completed within 60
seconds, through streamlined data
collection and verification

Enhanced fraud detection:

Incorporating multiple layers of
verification significantly improves
the ability to detect and prevent
fraud.

24
 Account Aggregator Playbook

4.4 Portfolio optimisation

Description

Portfolio optimisation stands as a Enhanced risk management:

cornerstone use case for Portfolio Understanding the client’s risk

Management Services and Alternative tolerance allows for the creation of

Investment Funds. This process a portfolio that balances potential

involves a deep analysis of an returns with an acceptable level of

individual’s or entity’s financial risk, thereby managing the client’s

landscape, including assets, liabilities, exposure to market volatility

income, expenses, and risk tolerance.

The goal is to construct and manage Alignment with financial

an investment portfolio that not only objectives: Tailoring the portfolio to

aligns with the client’s short-term and align with both short-term and

long-term financial goals but also long-term goals ensures that the

optimises their financial resources for client’s financial objectives are met,

maximum efficiency and return. whether it is wealth accumulation,

or income generation and so on

BENEFIT

Efficient capital allocation: By Ongoing financial planning and

having a complete view of the adjustment: The dynamic nature of

client’s financial situation, advisors financial markets and personal

can allocate capital more circumstances necessitates

efficiently, ensuring that continuous monitoring and

investments are made in a way that adjustment of the portfolio,

maximises returns while ensuring it remains relevant and

considering liquidity needs and effective over time.

other financial commitments.

Check out our demo for Upstox

25
 SECURITIES & PFM

4.5 Comprehensive financial planning and wealth tracking

Description

In the realm of wealth client’s financial holdings, wealth

management, the use case of managers can devise strategies

Comprehensive financial planning and that are better aligned with the

wealth tracking is essential for goal of wealth preservation and

providing high-quality advisory growth.

services. This approach integrates a

wide array of financial data across Adaptability to changing needs

various asset classes, including and market conditions: The

investments, insurance, real estate, dynamic nature of financial

loans, and deposits. By leveraging the markets and personal

Account Aggregator (AA) framework, circumstances necessitates an

wealth managers can construct a adaptable approach to financial

detailed and cohesive financial plan planning. Regular updates and

that encompasses certain major analyses of the client’s financial

aspects of a client’s wealth. data ensure that their financial

plan remains aligned with their

BENEFIT evolving needs and goals

Holistic financial overview: This

comprehensive approach offers a Informed decision-making: The

360-degree view of the client’s wealth manager is better equipped

entire financial landscape, crucial to make informed decisions

for effective wealth management regarding asset allocation, risk

management, and investment

Enhanced wealth preservation and opportunities.

growth strategies: With a complete

understanding of the Check out our demo for Upstox

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 SECURITIES & PFM

4.6 Financial analysis and research

Description
For research analysts, the use case which is crucial for investment
of financial analysis and research is planning and risk management.
pivotal in understanding and predicting
market dynamics. This process Understanding of market
involves leveraging detailed data on behaviour: This use case fosters a
market transactions, portfolio deeper understanding of market
investments, and trading history. By behaviour and the underlying
utilising the Account Aggregator (AA) factors that influence it, such as
framework, analysts can access a economic indicators, geopolitical
wealth of financial data, enabling them events, and investor psychology
to derive in-depth insights into market
trends, investor behaviour, and Identification of trends and
potential future market movements. patterns: Analysts can identify
emerging trends and patterns in
BENEFIT the market, enabling them to
Informed investment strategies: anticipate changes and advise
The insights gained from this clients accordingly.
analysis are invaluable in guiding
investment strategies, and helping
investors and fund managers make
more informed decisions

Enhanced market predictions:

Access to detailed financial data
enhances the accuracy and
reliability of market predictions,

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 Account Aggregator Playbook

4.7 Investment advisory

Description

Investment advisory for Registered Fostering long-term relationships:

Investment Advisors (RIAs) is a critical Personalised and effective advice

use case that leverages the Account helps in building and maintaining

Aggregator (AA) ecosystem to its fullest long-term client relationships

potential. RIAs can access in-depth

financial data to provide highly Regulatory and fiduciary

customised investment advice. This compliance: Ensures that

process involves analysing a client’s investment advice aligns with

investment history, risk tolerance, regulatory requirements and

financial goals etc. to develop fiduciary responsibilities

investment strategies that are closely

aligned with the individual’s objectives. Support for ongoing financial

planning: Facilitates continuous

BENEFIT financial planning and portfolio

Personalised investment strategies: adjustments in response to changes

The ability to create investment in the client’s life circumstances or

strategies that are specifically market conditions

tailored to each client’s financial

situation and goals. Benchmarking and risk scoring:

Benchmarking investments against

Enhanced client satisfaction: industry standards, AMC

Providing tailored guidance based performance along with risk scoring

on comprehensive financial data based on fund allocations, forms a

enhances client satisfaction and robust investment framework.

trust in the advisor’s

recommendations. Check out our demo for Upstox

28
 INSURANCE

5.1 Insurance underwriting

Description
In the insurance sector, the use premiums are fair and reflective of
case of Insurance Underwriting is the actual risk.
revolutionised through the Account
Aggregator (AA) ecosystem. This Streamlined underwriting
process involves a detailed evaluation process: The use of digital data
of applicants’ risk profiles by streams via the AA ecosystem
analysing a range of data points, significantly streamlines the
including health records, financial underwriting process, making it
assets, liabilities, and income. The faster and more efficient
integration of this data enables
insurers to offer more precise and Building customer trust:
customised insurance products, Transparent practices in
tailored to the specific needs and risk underwriting, backed by data-
profiles of individuals. driven insights, help in building
trust with customers, as they are
assured of fair and personalised
Benefit
insurance offerings.
Precise risk assessment:
Enhanced data access allows for a
more accurate assessment of the
applicant’s risk, leading to better
risk management and underwriting
decisions

Customised pricing: The ability to

tailor pricing based on individual
risk profiles, ensuring that

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 Account Aggregator Playbook

5.2 KYC and 60-second onboarding for insurance

Description
Mirroring the swift onboarding Onboarding process: The process
processes established in banks, involves eKYC, RPD (Risk Profiling
NBFCs, and securities sectors, the and Due Diligence), integration with
insurance industry can also implement AA for data aggregation, PAN
a 60-second onboarding experience. verification, and credit bureau
This process utilises the Account checks, similar to the streamlined
Aggregator (AA) framework to approach used in the banking,
streamline customer onboarding by NBFC, and securities sectors.
quickly verifying key information.

Benefit
Speedy onboarding: Similar to the
30-second process in other
financial sectors, this approach
ensures a quick and efficient
onboarding experience

Enhanced fraud detection: Utilises

multiple data points for a thorough
risk assessment, significantly
improving fraud detection
capabilities

Improved customer experience: A

fast and seamless onboarding
process enhances overall

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 INSURANCE

5.3 Strengthening verification process and reducing frauds

Description

In the insurance industry, the use of with the information declared by

the Account Aggregator (AA) them and the details available in

framework can significantly strengthen their KYC documents. This

the verification process and reduce comprehensive cross-checking

instances of fraud. This approach helps in identifying discrepancies

involves utilising the rich data available and potential fraudulent activities.

through AA to cross-verify customer

Bank account verification:
details and ensure the authenticity of
Traditionally, the ‘penny drop’
the information provided during the
method is used for bank account
insurance application and claims
verification, where a small amount
processes.
is transferred to the customer’s

account to verify its existence and

Benefit
ownership. With AA, this process
Address verification: Bank
can be replaced by directly
statements accessed through AA
accessing unmasked bank account
can be used as reliable address
numbers (when available), allowing
proofs. The address mentioned in
for a more efficient and secure
these statements can be cross-
verification process.
verified with the address provided

by the customer, ensuring

consistency and authenticity

Cross-validation of personal

details: The AA framework

facilitates the cross-validation of a

customer’s name, PAN, and address

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 Account Aggregator Playbook

5.4 Claims processing and payouts current process

In the current claims processing time, leading to faster claim

system, customers are required to settlements.
provide financial statements as
supporting documents. For claim Enhanced fraud detection: The
disbursement, insurance companies use of AA for Bank Account
need accurate bank details of the Verification (BAV) helps in
insured or the nominee. detecting and preventing
fraudulent claims, as the data
NEW APPROACH WITH ACCOUNT fetched is more reliable and
AGGREGATOR (AA) comprehensive

Description Improved customer experience:

This use case involves the utilisation Customers benefit from a more
of the AA framework for swift and efficient and hassle-free claims
secure claims processing and payouts. process, enhancing their overall
By integrating AA into the claims experience with the insurance
process, insurance companies can provider
streamline the verification of bank
account details and expedite the Streamlined onboarding for
disbursement of claim amounts. claims: Similar to the 60-second
onboarding experience in other
Benefit financial sectors, this approach can
Speedy claims processing: The be applied to the claims process,
integration of AA significantly making it quicker and more user-
speeds up the claims processing friendly.

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 setu.co

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