On Tuesday, PhonePe, the fintech firm owned by Walmart, launched its account aggregator services through its wholly-owned subsidiary, PhonePe Technology Services Pvt Ltd (PTSPL). To provide consumers with a convenient introduction to the new AA service, PTSPL collaborated with PhonePe Pvt Ltd and developed an account aggregator micro-app within the main PhonePe consumer app.
This micro-app enables the seamless and immediate exchange of financial data, such as bank statements, insurance policies, and tax filings, between Financial Information Users (FIUs) and Financial Information Providers (FIPs) for various use cases, including loan applications, insurance purchases, and investment advice.
This micro-app allows PhonePe users to easily register and create a new interoperable AA handle.
Additionally, users can instantly access their bank statements by selecting the ‘Check Balance’ option on the homepage of the PhonePe App. By taking these steps, PhonePe aims to streamline the process for users to access and control their financial data.
Additionally, PhonePe has partnered with several financial institutions, such as YES Bank, Federal Bank, and AU Small Finance Bank, as part of the launch. PhonePe also revealed that other major financial institutions would be integrated into their platform by the end of June.
What Rahul Chari, The CTO of PhonePe, Has to Say
Rahul Chari, co-founder and CTO at PhonePe, expressed his excitement about the launch of the Account Aggregator service. He emphasized that this service places PhonePe Group at the forefront of building digital public infrastructure that will significantly impact millions of Indians.
He also highlighted that this would empower the users by providing access and control over their financial data, revolutionising their engagement with financial services. With the introduction of the Account Aggregator Network, a new era of digital connectivity is set in motion, allowing individuals to utilize their information effectively and make informed financial decisions.
Chari also emphasized that this advancement will unlock a world of opportunities for users, further enhancing their financial well-being.
Significance of Account Aggregator Services
The Account Aggregator services offered by PhonePe signify a significant milestone in their journey. PhonePe has created an ecosystem that enables seamless access to financial information by partnering with leading financial institutions and integrating them into their platform. The AA micro-app developed within the PhonePe consumer app is a gateway for users to register and create an interoperable AA handle. This ensures a smooth onboarding experience.
Moreover, with the ‘Check Balance’ option readily available on the PhonePe App’s homepage, users can instantly retrieve their bank statements, providing them with real-time financial insights. This user-centric approach reflects PhonePe’s commitment to providing innovative solutions and driving financial inclusion among millions of Indians.
PhonePe, having raised $850 Mn this year, plans to strategically utilize the funds to expand its payment and insurance ventures in India. Nandan Nilekani, former UIDAI chairman and Infosys cofounder & chairman, expressed his belief that the AA platform and UPI form the foundation of the India Stack. The centre aims to stimulate further digitalization, cater to working capital needs, and facilitate the eCommerce revolution for smaller merchants through these offerings.
According to a survey by the Indian government, over 110 crore bank accounts are eligible to share data on the AA network. The government also revealed that 94 financial institutions had joined the AA platform.
It is worth mentioning that, on 26th Aug 2021 PhonePe received clearance to operate as an Account Aggregator (AA) after obtaining in-principle approval from the Reserve Bank of India (RBI). This clearance allowed PhonePe Account Aggregator Pvt Ltd, a subsidiary of the PhonePe Group, to launch its AA platform.
About PhonePe
PhonePe is India’s leading digital payments platform, with over 300 million registered users. It offers various services, including money transfers, bill payments, gold purchases, and investments. PhonePe also introduced Mutual Funds and Insurance products. The platform’s Switch feature enables users to place orders on over 600 partner apps. Accepted at over 20 million merchant outlets, PhonePe is a versatile and widely adopted financial services provider in India.
