PhonePe Launches Account Aggregator (AA) Services After Acquiring RBI Licence

After receiving the NBFC-AA licence from RBI, PhonePe Group has announced the launch of its Account Aggregator (AA) services through its wholly-owned subsidiary PhonePe Technology Services.

Through this service, the users will be able to share their financial data including bank statements, insurance policies, etc for several purposes such as application for loans, purchase of new insurance, etc. For the same, users will be able to request, pause or revoke any ongoing data consent directly from the PhonePe app itself. 

As a part of the launch, the fintech player has already tied up with a number financial institutions including YES Bank, Federal Bank, AU Small Finance Bank, etc. Per PhonePe, other big financial institutions are also going to get integrated by the end of June. 

To help customers understand and provide them a quick introduction of the new product, an AA micro-app within the PhonePe consumer app has been developed. This will enable PhonePe users to register and create a new interoperable AA handle. They will also be able to access their bank statements instantly on the ‘Check Balance’ option on the PhonePe App’s homepage.

Commenting on the service launch, Rahul Chari, cofounder and CTO at PhonePe said, “The launch of 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 Account Aggregator 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.”

The announcement comes after PhonePe aggressively raised a total of $850 Mn this year and announced that the funds will be used in a strategic manner. It also announced that it aims to expand its payment and insurance ventures in India.

Earlier, while commenting on the prospect of AA platform, former UIDAI chairman and Infosys cofounder & chairman Nandan Nilekani said that AA framework along with UPI form the bedrock of the India Stack. With these offerings, the centre aims to spur the next level of digitalisation, address working capital requirements and bring the ecommerce revolution to smaller merchants.

According to a survey conducted by the Indian government, more than 110 Cr bank accounts are currently eligible to share data on the AA network.

Further, the government informed the Parliament that by now, as many as 94 financial institutions have on boarded the AA platform.