The fintech giant partners with leading financial institutions and revolutionizes the way Indians engage with financial services
PhonePe Group, a prominent fintech player, has announced the launch of its Account Aggregator (AA) services through its subsidiary, PhonePe Technology Services. The move comes after the company received the NBFC-AA license from the Reserve Bank of India (RBI). With this groundbreaking service, users will have the ability to share their financial data, including bank statements and insurance policies, for various purposes such as loan applications and purchasing new insurance.
The PhonePe app will allow users to conveniently request, pause, or revoke ongoing data consent directly within the app itself. This empowering feature puts users in control of their financial information. Additionally, PhonePe has already established partnerships with several financial institutions, including YES Bank, Federal Bank, and AU Small Finance Bank, with plans to integrate more major institutions by the end of June. The strategic collaborations will further enhance the AA services and provide users with a seamless experience.
To ensure a smooth introduction to the new product, PhonePe has developed an AA micro-app within its consumer app. This micro-app will guide users through the registration process and enable them to create an interoperable AA handle. Users can also access their bank statements instantly by selecting the “Check Balance” option on the PhonePe app’s homepage. The AA micro-app serves as a valuable tool for customers to better understand and utilize the AA services.
Rahul Chari, the co-founder and CTO of PhonePe, commented on the launch, stating, “The Account Aggregator 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, revolutionizing the way they engage with financial services.”
The announcement follows PhonePe’s successful fundraising efforts, raising a total of $850 million this year. The company has strategically allocated these funds for expansion in the payment and insurance sectors in India. This move positions PhonePe as a key player in the digitalization of financial services and paves the way for future opportunities.
Renowned industry expert and former UIDAI chairman, Nandan Nilekani, emphasized the significance of the AA platform, stating that it, along with UPI, forms the bedrock of the India Stack. The government aims to leverage these offerings to drive digitalization, address working capital requirements, and enable smaller merchants to participate in the e-commerce revolution.
Recent government surveys indicate that more than 110 crore (1.1 billion) bank accounts are eligible to share data on the AA network, highlighting the vast potential user base for this service. Furthermore, the government has confirmed that 94 financial institutions have already joined the AA platform, demonstrating its widespread adoption within the industry.
PhonePe’s Account Aggregator services mark a significant milestone in the digitization of financial services in India. With its user-centric approach and partnerships with leading institutions, PhonePe aims to empower individuals, revolutionize financial decision-making, and unlock a world of opportunities for millions of Indians.