Walmart-owned fintech firm on Tuesday launched its account aggregator (AA) services through its wholly-owned subsidiary PhonePe Technology Services Pvt Ltd (PTSPL).
PTSPL tied up with PhonePe Pvt Ltd and built an AA micro-app within the main PhonePe consumer app to give consumers a quick and easy introduction to the new AA service.
The micro-app will allow users to register and create a new interoperable AA handle, where they can access their bank statements instantly.
AA platforms enable a free and instant exchange of financial data, including customer’s bank statements, insurance policies, tax filings, etc., between Financial Information Users (FIUs) and Financial Information Providers (FIPs) for several use cases, including applying for loans, buying new insurance, getting investment advice, etc.
Consumers can request, pause, or revoke any ongoing data consent directly from the app.
In a statement, PhonePe said it has already integrated with multiple FIPs such as YES Bank, Federal Bank, and AU Small Finance Bank, while some large banks are likely to come on board before June end.
Further, PTSPL has also launched its product suite and APIs for the FIU market and is in the process of integrating with regulated FIUs so it can start taking consent from its users to do real-time data fetch from the users’ FIPs.
“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, Co-founder and CTO at PhonePe.
“The AA 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,” he continued.
As on December 31, 2022, 27 financial Institutions have gone live as FIPs, including all 12 public sector banks, 10 private sector banks, one small finance bank, and four life insurance companies.
On the other hand, 119 financial institutions have gone live as FIUs, including 93 Reserve Bank of India-regulated entities, 12 Securities and Exchanges Board of India-regulated entities, 12 Insurance Regulatory and Development Authority-regulated entities, and two Pension Fund Regulatory and Development Authority-regulated entities.
