Account Aggregation Explained

Imagine a world where you don't have to juggle multiple bank accounts and logins to manage your finances. A world where you can see all your balances, transactions, and upcoming bills in one place. That's the power of bank account aggregation.

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What is account aggregation?

Bank account aggregation is a service that allows you to connect all your financial accounts, from checking and savings to credit cards and investment accounts, into a single platform. This platform can be a budgeting app, a personal finance management app like Lodin, or even your bank's online portal.

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How does account aggregation work?

Bank account aggregation relies on a technology called Open Banking (or Open Finance in some regions). Open Banking allows authorized third-party providers (TPPs) to securely access your financial data with your permission. This data is then presented in a user-friendly format within a single centralized platform.

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Benefits of account aggregation 

For users

• ‍Consolidated view of finances: account aggregation allows users to see all their financial accounts, including checking, savings, credit cards, and investment accounts, in one place. This eliminates the need to log in to multiple apps and websites, providing a holistic view of their financial situation. ‍
• Simplified budgeting and tracking: transactions from all accounts are automatically downloaded and categorized. Users can easily track spending habits, identify areas for improvement, and create realistic budgets based on consolidated income and expenses.‍
• Enhanced security: many account aggregation services utilize strong authentication measures and encryption to protect user data. Unlike logging into multiple platforms, users only need to remember one set of credentials for the aggregator app or service.

For businesses

• ‍Elevated customer experience: offer account aggregation as a valuable service, allowing customers to connect external accounts for easier money management. This fosters customer satisfaction and loyalty. 
• ‍Data-driven decision-making: integrate account aggregation with your existing financial software. Access aggregated customer data for more accurate forecasting and business decisions. ‍
• Potential for fraud detection: gain a more complete picture of a customer's finances, potentially helping identify fraudulent activity sooner. This protects both the business and the customer from financial losses.‍
• Targeted service opportunities: leverage insights from aggregated data to offer personalized financial products and services to your customers. This could include targeted loans, investment opportunities, or budgeting tools based on individual spending patterns or insights into spending habits and financial health.

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How can Lodin help you with account aggregation?

Lodin simplifies managing your finances by aggregating all your accounts in one secure location.

Start by downloading the Lodin app and connecting your bank accounts. Instantly gain a consolidated view of your finances, eliminating the need to juggle multiple apps and logins. Real-time account monitoring keeps you informed of every transaction happening across your various accounts, empowering you to:

• Track your spending habits:  Gain a clear understanding of where your money goes.
• Anticipate future expenses:  Plan for upcoming bills and avoid unexpected shortfalls.
• Make informed financial decisions:  Utilize a holistic view of your finances to make smarter budgeting and saving choices.

For both your business and personal use.

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