June 23, 2024

How Can Account Aggregation Apps Help Reconcile Digital Expenses?

Did you generally come through the problem of expense reconciliation, particularly with various small transactions that congest the bank transaction statements? Have you ever wished that there must be an app to make life simpler for faster, more secure and self-authorized bank detail sharing at a single click? Then, account aggregation is the app that you need. There are many RBI-regulated account aggregation apps available that offer permission-based data allocation services in India. So, in this post, we will look further into aggregation apps, how these apps work, the benefits of these apps, and things to know while choosing any account aggregation app!


Why is Automated Account Reconciliation Better than Manual One?

As there is always the feasibility of manually reconciling all the expenditures, it consumes more time and effort. There are people who don’t require more than one bank account but wind up with various accounts because they create a new one each time they change their job or simply during different phases of life. This generally results in expenditures and balances getting mutilated across these accounts, which can provide users with a very complicated view of their finances. That is why there is a need for account aggregation apps to get a better-automated reconciliation of bank statements.

These apps provide real-time visibility on income, expenses, investments, profit and loss. It assists in keeping a record of the account payables and receivables for all customers and vendors. Digitization of payments, billing, and others assists in avoiding errors and saves time, which consecutively increases efficiency.

How Do Account Aggregation Apps Work?

Account aggregation apps are developed to help you administer your finances by centralizing all of your accounts in one place. This is the best method to keep a record of your expenses habits, check any doubtful activity and track the progress you make in the way of the financial targets you have fixed.

A number of Account Aggregation (AA) apps will let users link their credit cards, bank accounts in addition to investment accounts, and other accounts with financial organizations. After your accounts have been connected or linked, the application will gather your balances and transaction records to let you see everything in one place.

What Are Different Benefits of Account Aggregation Apps?

  1. Financial data allocation with controlled or regulated entities has been made simple and secure with AA applications. Just similar to UPI, you can make your own aggregation account.

  2. With AA, you do not need to go many kilometers from your home to the closest city only to offer your accompanying papers or bank statements to lending organizations. You can download AA apps and allocate your data straight with the lending organization or bank.

  3. Personal finance apps enabled with an account aggregator can help users with different bank accounts in checking their balances without changing apps. As the whole consolidated bank account information all over different banks can be seen by the user in a single application, tracking becomes effortless.

  4. One more benefit of using an account aggregation app is that it will be helpful for users in saving cash. Many of these apps offer features like expense tracking and budgeting tools that help in decreasing useless expenditures. They may also give coupons and discounts from partners.

  5. You can employ account aggregation apps that can be useful in giving you a better knowledge of your financial position. If you have all of your accounts in one place, it is more effortless to verify patterns and check your modifications in time. This is very advantageous when you are attempting to attain a financial target, such as eliminating debt or saving money for retirement.

Things To Know While Choosing Account Aggregation Apps

  1. While account aggregation apps are profitable, they may make you open to deception if you are not very cautious. To get initiated, it is essential to download the proper app version. It is best to select apps that are classified under the Account Aggregator (AA) framework.

  2. Android users must always employ the Google Play Store together with the Play Protect Secure settings, thus, you only need to download the correct app. Google Play Protect verifies your applications and devices for malicious behavior. It runs a security check on applications from the Google Play Store before you download them. It also tests your device for prospectively harmful applications from different sources. These harmful applications are sometimes known as malware.

  3. For users of iOS, Apple offers the same cloud-based safety, but it can be better to utilize an anti-malware or antivirus app to look through your phone daily. Whereas iOS users were not able to use many applications due to strict privacy rules, the account aggregation framework has resolved the issue for them.

  4. From a customer viewpoint, the approval managers or account aggregators have to keep a record of all approvals taken from the client. This record is accessible to the customer precisely, and they can ask for cancellation of any previous permission at any moment. For example, if you give an organization permission to access your bank account information for six months, you can return and take back the permission afterwards if you selected not to be involved with that financial organization.

  5. As you are approved to share your financial information with diverse aggregators, data privacy problems also become active. The AA regulations point out that the aggregators are not permitted to process, store, or sell the details. You may also take back your permission for account aggregation at any time, whether you are live with the particular app.

Final Words

There are many account aggregation apps that are present to help you keep a record of your financials. They let you see all your account balances from one place and can be helpful when you have various bank accounts, credit cards and investment accounts. Some AA apps also offer features like tracking and budgeting that can help you track your expenditures.

If you are looking to take advantage of a safe aggregator app, Anumati, as a reliable service provider of open banking technology, is here to help. By using the Anumati app, you can get a personalized view of all your accounts in one place and track all the digital expenses and better reconciliation of them.

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