Open Banking Aggregators

  • Mobile app notifications every time a “transaction” was made;
  • Breakdowns of what you’ve spent every month in associated categories to allow you to control your spending more easily;
  • The provision of savings pots so that you can use surplus money in your account to save towards specific targets.

Aggregator Functionality

The aggregators provide differing functionality — after all, they’re competing companies in the space. There is a baseline of standard functionality however provided, but it’s also good to call out the highlights in the various providers, which I will do later on.

Bank Connection Link and Transaction Updates

There’s an additional step for your user before the third-party can access your transaction data — authorization. That means the user going through an authorization flow with their bank, selecting the accounts they want to sync before transaction data is downloaded. Trulayer provides some more information on this flow here:

Providing raw transaction data with some attached metadata

The real benefit of using an aggregator is that they will “enrich” the data in various ways. Bank data can be messy and hard to parse. A good example of metadata here is the type of transaction that this is — whether it’s a Food/Restaurant transaction or whether it’s a Subscription (e.g. Netflix). you could build that yourself, but it’s a fair bit of work with various nuances.

  • NON-GBP TRANS FEE DEB — Bank Fee transaction;
  • COFFEE NO 1 CHIPPI DEB — restaurant and coffee shop transaction.

Payment Initiation

Payment initiation involves allowing an aggregator to process a payment via your bank on behalf of a user. That might allow you to switch different products in-app or to purchase additional products. There’s a benefit for you as a company as you’re able to avoid the payment card transaction fee.

User Identity

Verification of a user's identity for your mobile/web app in order to reduce fraud. This is particularly important if you’re dealing with insurances, loans or other products that someone would want to mislead you about to obtain.

Aggregator Differentiators

Some of the aggregators provide additional functionality. I’m going to pick on a few aggregators and call out functionality that I think is interesting as an engineer with some rationale as to why. by the way, if you’re API isn’t publically accessible I haven’t included you here.

In Conclusion

Open Banking is changing the consumer fin-tech world for the better and allowing startups to innovate in this area.

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