PhonePe unveils account aggregator services, integrates with various banks

PhonePe on Tuesday unveiled its account aggregator (AA) services. With this launch, the fintech app’s users can now share their financial data with other financial institutions, such as lenders, insurance companies, and investment firms, with their consent. This will help users to get faster and easier access to financial products and services.

The company has integrated with over 100 banks and financial institutions, including State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank.

The company has received in-principle approval from the Reserve Bank of India (RBI) to operate as an AA on August 26, 2021 that will enable free and instant exchange of financial data between the financial information users (FIUs) and financial information providers (FIPs) with due consent from customers, in a safe and secure manner

AA, a new framework introduced by the RBI, will enable secure and seamless sharing of financial data between financial institutions and customers. The framework is designed to promote financial inclusion and help customers to get better financial products and services.

In order to use PhonePe’s AA services, users need to create an AA account on the app and link their bank accounts. Once the accounts are linked, users can share their financial data with other financial institutions by giving their consent.

"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," said Rahul Chari, Co-Founder and CTO at PhonePe in a media statement.

The company also said that users can request, pause, or revoke any ongoing data consent directly from the PhonePe website or from the PhonePe app itself.

PhonePe Group has also launched a mini-app on the main PhonePe payments app. "To give consumers a quick and easy introduction to the new Account Aggregator service, PTSPL has tied up with PhonePe Pvt Ltd, and built an AA micro-app within the PhonePe consumer app," the firm said in the statement.

This app will let PhonePe users register and make a new interoperable AA handle. With this, PhonePe users can also access their bank statements instantly on the 'Check Balance' option on the PhonePe App’s homepage for free.

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