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PhonePe begins account aggregator services: All you need to know
The RBI granted the fintech giant a preliminary licence to function as an account aggregator (AA) in August 2021.
PhonePe, a fintech company, began its account aggregator (AA) services on Tuesday. In a statement, co-founder and CTO Rahul Chari stated that the AA network sets the ground for a new era of digital connectivity.’
An account aggregator is an RBI-regulated firm that assists individuals in accessing and sharing financial information digitally after they have given their authorization for such services. PhonePe, situated in Bengaluru, acquired in-principle approval for the NBFC-AA licence in 2021.
PhonePe’s AA service, which was released as a mini-app on the main PhonePe Payments App, would allow Indian users to consent to and share all of their financial data with other regulated institutions or FIUs (Financial Information Users). The information can be used to apply for loans, purchase insurance policies, and receive investment advice.
“The launch of the AA service places PhonePe Group at the forefront of developing digital public infrastructure that will benefit millions of Indians.” This will also enable customers to access and control their own financial data, revolutionising the way they interact with financial services,” said PhonePe co-founder Rahul Chari.
Furthermore, users can request, halt, or remove any ongoing data consent through aa.phonepe.com or the PhonePe app itself. Users will also be able to see their bank statements quickly on the PhonePe App’s homepage via the ‘Check Balance’ option for free.
PTSPL has linked with numerous banks that have client data, such as YES Bank, Federal Bank, and AU Small Finance Bank, as part of the launch, and are known as financial information providers (FIP). A number of other FIPs, including significant banks, are expected to be integrated by the end of June.
The fintech firm is merging with regulated FIUs in order to begin accepting user consent for real-time data harvest from financial information providers.
Here’s everything you should know about PhonePe’s Account Aggregator services:
- The feature, which was launched by PhonePe Technology Services Private Limited (PTSPL), the company’s wholly-owned subsidiary, allows clients to share all of their financial data with regulated financial institutions (RFIs).
- Financial data comprises bank statements, insurance policies, tax returns, and so on. These are utilised for a variety of objectives, including loan applications, new insurance, financial counselling, and so forth.
- Individuals can also halt or revoke any ongoing data consent. This can be accomplished immediately through the PhonePe website or app.
- PTPSL has already partnered with YES Bank, Federal Bank, AU Small Finance Bank, and several other financial information providers (FPIs) to deliver AA services. More FPIs will very certainly be implemented before the end of the month.
- For a quick and easy introduction, the Bengaluru-based company has created an AA micro app within the PhonePe consumer app. Customers can register for a new interoperable AA handle and instantly check their bank statements under ‘Check Balance’ on the app’s homepage.
- The Reserve Bank of India (RBI) gave PhonePe in-principle authorisation to function as an Account Aggregator in August 2021.
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