Fintech major PhonePe announced the launch of its account aggregator (AA) services through its wholly-owned subsidiary PhonePe Technology Services Pvt Ltd (PTSPL), which will allow its Indian consumers to consent to and share all their financial data, such as bank statements, with regulated Financial Institutions.
The financial data such as bank statements, insurance policies, and tax filings when shared with financial institutions will help consumers in applying for loans, buying new insurance, or getting investment advice.This will also empower users to access and control their own financial data, revolutionizing the way they engage with financial services. The Account Aggregator Network sets the stage for a new era of digital connectivity, where individuals can harness the power of their own information to make informed financial decisions and unlock a world of opportunities," said Rahul Chari, Co-Founder and CTO at PhonePe in a media statement. Consumers can request, pause, or revoke any ongoing data consent directly from PhonePe website or from PhonePe app itself, the firm said in the statement on Tuesday. As a part of the launch, PhonePe's PTSPL has already integrated with Financial Information Providers (FIP) such as YES Bank, Federal Bank, AU Small Finance Bank, etc. Several other FIPs, including large banks, are likely to get integrated before the end of June.
For a quick and easy introduction, the Bengaluru-headquartered firm has built an AA micro app inside the PhonePe consumer app. Here, customers can register for a new interoperable AA handle, and check their bank statements instantly under ‘Check Balance’ on the app's homepage. In August 2021 the Reserve Bank of India (RBI) granted in-principle approval to PhonePe to operate as an Account Aggregator.