Use Cases
Multibank PFM
All bank accounts on one screen, all banking functions in one place – this is what multibank personal finance management (PFM) offers in a nutshell.
By aggregating data, it allows customers to manage accounts with multiple banks in a single app. Users need to log in once to get an overall picture of their finances and simultaneously review their balances, loans, credit cards or savings with different banks. Deutsche Bank , for example, lets customers add several third-party accounts to its app with a few clicks, provides easy-to-use interactive charts and graphs on balances and offers quick money transfer between various accounts. Plus, it automatically assigns transactions to categories, such as ‘living’, ‘housing’ or ‘traveling’ for better insights.
Credit Scoring
Offering fast and seamless digital services is increasingly important for banks, many of which are aiming to save time for customers by going paperless in online applications for personal loans, consumer credit or financing for small businesses.
Banks collect and aggregate customer data from past banking transactions, utility bills or even phone data to determine a credit score, which helps them decide whether to accept or reject a loan request. Online small-business lender Kabbage , which uses data aggregation for credit approval decisions, asks applicants to digitally share transactional and revenue information from their checking accounts, accounting software or Amazon and eBay profiles. This makes visiting a branch or digging up documents unnecessary for applicants.
Accounting Software
Keeping a close eye on cashflow and invoices is imperative for small businesses. Luckily, they are now offered digital aggregation services to help manage their workload.
Xero , a New Zealand-based software company providing a cloud-based accounting platform to entrepreneurs, allows its users to link multiple bank or credit card accounts to its software. Transactions are imported into Xero each day, which makes it easy to keep track of payments coming in or going out of the business. Customers can reconcile bank transactions by simply confirming what the software suggests and set up rules to automatically match transactions to invoices, bill payments or purchases. Aggregated data is displayed on a customizable dashboard, providing an up-to-date picture of finances.
Utility bill payments
Account aggregation can work wonders when it comes to tracking and paying recurring electricity, gas, water or internet bills.
Applications can combine various monthly costs into one bill and even allow splitting payment between customers sharing accommodation or office space. SimpleBills , a US utility bill management firm, links up with different third-party utility firms, retrieves invoices from them and sends out one bill with one due date and a single in-app or online payment. Users have detailed insights on total monthly expenses and usage of utilities in an aggregated overview and can split payments if they have roommates or tenants. SimpleBills mostly offers its services on the student housing and property management markets.
Subscription Management
Managing subscriptions for mobile, internet or video streaming services, utilities or insurance can be a daunting task.
Just ask anyone if they ever forgot to cancel an unwanted subscription. But data aggregation solutions can help stay on top of these expenses. Danish lender Danske Bank , for instance, has teamed up with Swedish fintech firm Minna Technologies to integrate a subscription management tool into its mobile banking app. Minna provides a dashboard to Danske Bank’s customers to add, cancel or switch their subscriptions in seconds and will also assist them in negotiating for better tariffs or rates with their existing service providers. The service can aid Danske Bank in boosting customer engagement and personalizing user experience.