Fintech major PhonePe launches AA Services via wholly-owned subsidiary

Fintech firm PhonePe on Tuesday announced the launch of its Account Aggregator (AA) services via its wholly-owned subsidiary PhonePe Technology Services (PTSPL), the company said in a press statement.

PTSPL has integrated with various FIPs such as YES Bank, Federal Bank, and AU Small Finance Bank, among others, and the company expects to integrate other major lenders by the end of June.

“This (launch of  AA services) will also empower users to access and control their own financial data, revolutionizing the way they engage with financial services. The AA 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 of PhonePe, in a statement.

The AA services will enable Indian consumers to share their financial data with regulated financial institutions or Financial Information Users (FIUs) for purposes such as loan applications, purchasing insurance, receiving investment advice, among others.  

Authorised by the Reserve Bank of India (RBI), an account aggregator is licensed to collect financial data such as bank statements, insurance policies, and tax filings from multiple Financial Information Providers (FIPs) and share it with FIUs with the user’s consent. Simultaneously, users are empowered to request, pause or revoke any ongoing data consent directly from aa.phonepe.com or within the PhonePe app.

In a tie-up with PhonePe, PTSPL has built an AA micro-app within the PhonePe consumer app to introduce the new AA services. The micro-app will enable PhonePe users to register and create a new interoperable AA handle. The PhonePe app’s homepage will allow users to access bank statements via the ‘Check Balance’ option for free.