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PhonePe begins account aggregator services: All you need to know
In August 2021, the fintech major received in-principle approval from the RBI to operate as an account aggregator (AA).
Fintech major PhonePe on Tuesday launched its account aggregator (AA) services. In a statement, co-founder and CTO Rahul Chari said that the AA network ‘sets the stage for a new era of digital connectivity.’
“This will empower users to access and control their own financial data, revolutionising the way they engage with financial services. Individuals can now harness the power of their own information to make informed financial decisions and unlock a world of opportunities,” CNBC TV18 and Moneycontrol quoted Chari as saying, citing the PhonePe media statement.
Here is all you need to know about PhonePe's Account Aggregator services:
(1.) Launched through PhonePe Technology Services Private Limited (PTSPL), the company's wholly-owned subsidiary, the facility allows customers to share all their financial data with regulated financial institutions (RFIs).
(2.) The financial data includes bank statements, insurance policy, tax filings, etc. These are used for purposes such as loan applications, new insurance, investment advice, and more.
(3.) Also, people can pause or revoke any ongoing data consent. This can be done directly through the PhonePe website or the app.
(4.) To provide the AA services, PTPSL has already tied up with YES Bank, Federal Bank, AU Small Finance Bank and several other financial information providers (FPIs). More FPIs are likely to be integrated before the end of the month.
(5.) 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.
(6.) In August 2021, the Reserve Bank of India (RBI) granted in-principle approval to PhonePe to operate as an Account Aggregator.
