Nordigen is a Latvian fintech established in 2016 and authorized as an Account Information Service Provider, which allows its consumers to use a single API to connect to more than 2000 banks in 30 European countries. As Nordigen supports developer-friendly access to banking information, it aggregates open APIs of many European banks in one open banking data platform through a single API. This single data platform is freely available by businesses to build new open baking-based applications. Let us dig in to find out more about the role of Nordigen as an AISP in the banking industry.
What exactly is AISP?
AISPs are financial institutions that can access and collect consumers’ financial data stored and managed by account-holding financial institutions through open APIs, also known as Application Programming Interfaces. Also, AISPs provide account aggregation services to customers, delivering a view of multiple accounts from different banks in a single dashboard. However, AISPS can only view, store and consolidate accounts exclusively for analysis, advisory and informational purposes and cannot instigate payments or move money on behalf of the consumer. Also, to retrieve and store consumers’ account information, AISPs must have the permission of the individual or business that owns the account. In other words, AISPs access financial information from one or more of their consumers’ financial institutions and can display this data back to the customer or other institutions only with the explicit consent of the user. Individuals and businesses that use AISPs to access their accounts can easily and comfortably get a consolidated view of their accounts across various financial institutions. This consolidated view allows users time-efficiently and comfortably to get insights into their or their customer’s financial behavior, speed up various financial services, such as loan or credit approval, verification of their consumer’s identity and income. As AISP, Nordigen can deliver access to aggregated account information for its consumers and provide paid services for analytics and insights services.
How does Nordigen distinguish from other AISPs?
Nordigen, which established a single API through which it connects to open APIs of more than 2000 banks, has the largest network of API bank connections in Europe. By using a single API to connect to many European banks, Nordigen provides its consumers, who usually are other fintech companies, a freemium open banking data platform. This self-service data connectivity platform that integrates a freemium model allows Nordigen to offer free access to bank data coupled with premium data analytics and insights services. The freemium open banking data platform is suited to help businesses retrieve banking data and prepare data for use in developing open banking-based applications with more ease. By using Nordigen‘s platform, companies can time-efficiently and comfortably connect to bank accounts and retrieve raw transaction data, including account holder name, bank account number, and transactions history with their consent, free of charge. Free access to the raw transaction data provided by Nordigen allows businesses to use this data to improve digital verification of their consumers’ identity and income, facilitate automation of onboarding processes, enhance management of credit risk and create a multi-banking system. For businesses that want to get more from transaction data, Nordigen provides premium financial data analytics and insights services. By using premium services, developers are able to get access to raw and unstructured banking data and further also make sense of it. Within a single Nordigen’s platform, businesses can clean, enrich and analyze account and transaction data to gain insights, understand their customers better, and build better products and services regarding consumer lending, accounting, cash flow management, and personal finance. To find out more about Nordigen and its freemium open banking data platform, click on the link: https://nordigen.com/.