The technology automates that login procedure on user’s behalf
Personal finance aggregation (PFA) is a simple way of aggregating financial information in one place. PFA tools will aggregate the information on bank accounts, credit cards, investments, loans and retirement funds in one place.
There are a number of personal finance aggregation tools in Asia: some are basic where user needs to key in expenses to keep track whilst others are more advanced whereby user can directly link to bank accounts and other financial institutions.
How personal finance aggregation technology works
The underlying basis of the technology is quite simple – user gets a facility whereby they do not need to visit their bank websites again and again to check their balances.
The technology automates that login procedure on user’s behalf. This is done by linking accounts by providing their internet banking login id and password and the technology will login on users’ behalf every time they need to refresh their details.
However, devil lies in details and there are primarily two ways in which the technology works – server side aggregation and client side aggregation.
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Server side aggregation
Under this technology, the service provider saves user’s internet banking login id and password on a cloud server. User will typically provide a power of attorney to the service provider to use login details to continuously fetch information.
The benefit of this technology is that details will be continuously updated in background since the service provider has access to internet banking login details. However, there are two critical issues with this technology:
- Given login details are saved on a server, the chances of a mass hacking are higher and user is exposed to login details being compromised. With the cyber security risks increasing, this may potentially be a road blocker in certain regulations where the bar for data privacy and cyber security is high.
- User’s banking data is fetched by the service provider in the background and therefore user has less control over what information needs to be shared with service providers. In some cases, this data is analysed and user’s emails address is spammed with promotional offers from merchants.
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Client side aggregation
Under this technology, user is always in charge of internet banking login details and banking data. This technology creates a digital locker on user’s computer or mobile and all internet banking login details are stored in that locker. These details are never shared with the service provider either.
When user wants to add an account or refresh the information, this digital locker logins on user’s behalf and fetches the transaction. As a result, users are always in charge of when they want to update their information. In addition, users’ banking information is saved in this digital locker as well and shared with the service provider for analyses to be shown to users.
In terms of security, login details are never saved on a cloud server preventing any mass hacking attack.
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How PiMoney works
PiMoney uses client side aggregation technology to provide personal finance management solutions. Using this technology, PiMoney provides a comprehensive aggregation solution for bank accounts, credit cards, loans and investments.
Other innovative functionalities in PiMoney include PDF statement reader, budget tracking and goal tracking to enable users to adopt a proactive approach to personal finance management.
One of the ways to check whether your provider uses server side aggregation is whether you can refresh your financial information from different computers or mobile devices. If you can refresh the information without requiring to set up your accounts again, it means your bank login details are saved on a server.
PiMoney user will need to download the digital locker before using the PiMoney platform from a new device. This digital locker ensures that login details are always saved on the device and never on a cloud server.
PiSight is a Financial Technology company incorporated in Singapore and was founded with the motive to help people manage their finances in an easy and convenient manner. PiMoney is the flagship product of PiSight, a finTech solution designed to help you manage your finances with ease and convenience.
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