An account aggregator is an RBI-regulated entity that helps individuals access and share financial information digitally after their consent for such services has been obtained. Bengaluru based PhonePe had received in-principle approval for the NBFC-AA licence back in 2021.
PhonePe’s AA service, launched as a mini-app on the main PhonePe Payments App, will allow Indian consumers to consent to and share all their financial data, such as bank statements, insurance policies and tax filings, with other regulated institutions or FIUs (Financial Information Users). The data can be used to apply for loans, buy insurance policies and get investment advice.
“The launch of the AA service puts PhonePe Group at the forefront of building digital public infrastructure that will have a significant impact on millions of Indians. This will also empower users to access and control their own financial data, revolutionising the way they engage with financial services,” said Rahul Chari, cofounder, PhonePe.
Further, consumers can request, pause or revoke any ongoing data consent directly from aa.phonepe.com or from within the PhonePe app itself. Users will also be able to access their bank statements instantly on the ‘Check Balance’ option on the PhonePe App’s homepage for free.
As part of the launch, PTSPL has integrated with multiple banks who have customer data, such as YES Bank, Federal Bank, AU Small Finance Bank, who are known as financial information providers (FIP). Several other FIPs, including large banks, are likely to get integrated before the end of June.
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The fintech company is in the process of integrating with regulated FIUs so they can start taking user consent for a real-time data fetch from financial information providers.
