PhonePe Group has launched its Account Aggregator (AA) services after receiving the NBFC-AA license from the Reserve Bank of India (RBI). Through its subsidiary PhonePe Technology Services, users can now share their financial data, including bank statements and insurance policies, for various purposes such as loan applications and purchasing insurance. PhonePe app users can request, pause, or revoke data consent directly within the app.
To facilitate user understanding, PhonePe has developed an AA micro-app within its consumer app. This allows users to register, create an interoperable AA handle, and instantly access their bank statements through the “Check Balance” option on the app’s homepage. The company has already partnered with financial institutions like YES Bank, Federal Bank, and AU Small Finance Bank, with more institutions expected to integrate by the end of June.
Rahul Chari, PhonePe’s co-founder and CTO, highlighted the significance of the Account Aggregator service in empowering users to access and control their own financial data. He described it as a step towards building digital public infrastructure that will revolutionize the way individuals engage with financial services and make informed decisions.
PhonePe’s launch of AA services follows its successful fundraising efforts, raising a total of $850 million this year. The company aims to strategically expand its payment and insurance ventures in India.
Former UIDAI chairman and Infosys co-founder, Nandan Nilekani, emphasized the importance of the AA platform, stating that it, along with the Unified Payments Interface (UPI), forms the foundation of India Stack. The government aims to drive digitalization, address working capital requirements, and bring the e-commerce revolution to smaller merchants through these offerings.
According to a government survey, over 1.1 billion bank accounts are currently eligible to share data on the AA network. Furthermore, the government stated that 94 financial institutions have already joined the AA platform.
