If you’re interested to find out what AISP is, keep reading. This article might be useful! With the concept of open banking spreading across the globe and becoming more and more influential, terms like AISP are becoming as relevant, as ever.
People want to know who does who in the realm of open banking and how these businesses help them manage their finances. So, let’s dive deeper into the world of finance and find out what AISPs are.
What Is AISP?
AISP is just an abbreviated version of Account Information Service Provider. They are companies or service providers that offer solutions that allow gathering and collecting relevant financial information from ASPSPs (banks) on behalf of a third party.
This is done with the consent of the user (as his, her personal, or company’s data is collected) in exchange for a service, analysis, evaluation, etc. In simple terms, an AISP is certified to access and process information about people and companies, held by the banks. In the right hands, this information can offer truly wonderful benefits.
For example, after processing a customer’s data, gathered via the Account Information Service Provider, a loan company can evaluate the creditworthiness of a client, or a landlord can see the financial health of a potential tenant. There are many areas where this technology can be implemented and utilized for the benefit of consumers and profits for businesses.
How Do AISPs Work?
From a technological standpoint, answering the question of what is AISP becomes a bit more challenging. There are a lot of nuanced technical complexities and crucial legal obligations that these tools have to meet. It’s easier to know when AISP is used rather than how it works.
In the shortest way that we can explain, AISPs connect to the APIs of the bank and are able to securely gather data per the consented request of a user. This access to information is often compared to read-only, as the AISP is free to collect information but hasn’t the tools nor permission to change it in any way.
Let’s give an example:
Once a person decides to apply for a loan, they need to provide income statements and their creditworthiness needs to be verified. Instead of having to worry about stamped paper documents from the bank and going to the institution in person, they can just link a bank account via the AISP, and their creditworthiness is automatically verified. Instead of having to wait days or weeks, thanks to AI and machine learning as well as automated risk management, loans can be granted in minutes.
Practical Usage Of AISP Technology
We touched upon the many possible areas for implementation a bit earlier. However, despite the versatility of the technology on paper, it’s worth noting that a variety of different service providers have already implemented this solution into their tech infrastructure.
These are not just banks and financing companies. AISP technology is able to positively impact businesses in retail, real estate, traditional investing, cryptocurrencies, online casinos, wealth tech, etc.
For the most part, AISPs are limited to verifying certain information or procuring financial info for evaluation and verification. By consenting with AISPs terms, users can get more personalized and overall better service. This is defined through quicker verifications, much less manual work, and automated problem-solving, in general.
If you are interested in even more technology-related articles and information from us here at Bit Rebels, then we have a lot to choose from.