Now, PhonePe is the authorized account aggregator. It got approval from RBI. That means PhonePe is now able to exchange financial data free and instantly between the Financial Information Users (FIUs) and Financial Information Providers (FIPs) with due consent from customers.
PhonePe’s Role as an Account Aggregator (AA)
PhonePe has announced on Thursday that it is now the authorized body to exchange financial data among different financial bodies after customers’ consent.
As per the latest approval, Wallmart owned PhonePe will start its Account Aggregator(AA) platform that will enable the free and instant exchange of financial data between the Financial Information Users (FIUs) and Financial Information Providers (FIPs). But, the customers’ consent is still mandatory while operating the AA platform.
AA operations will not help the customers to avail add-on financial services faster, and cheaper but the process will also be safe and secured. The company said that it is another landmark service to provide services conveniently.
About AA Technology and its Benefits
PhonePe is not the only firm that got AA approval. Other financial firms including Perfios Perfios Account Aggregation Svcs and Yodlee Finsoft have also got this approval.
How AA will benefit PhonePe’s customers and other stakeholders? Answering this question, Rahul Chari CTO and Co-founder of PhonePe said, “The Account Aggregator license will allow us to play a pivotal role in shaping the emergent Account Aggregator ecosystem for consent-based financial data sharing.”
He further added, “Our AA technology stack will enable any Financial information user (FIU) to instantly retrieve financial information with customer consent from the Financial information provider (FIP). We are looking forward to working closely with all the industry stakeholders to take forward RBI’s vision of driving deeper financial inclusion across the country.”
RBI approved aggregation services based on a customer’s explicit consent in 2016 to bring all user data under one platform. Earlier, the financial data of customers is spread across banks and other institutions, each having different methods and platforms to access our information. Account aggregation solves this issue by compiling data from multiple accounts under one roof. This may include deposits, investments, insurance policies, pension schemes, etc.
Currently, around 12 banks and other financial institutions are given their consent to be a part of the FIU and FIP framework. These institutions are in different phases to adopt the AA technology. State Bank of India (SBI), HDFC Bank, ICICI Bank, and LendingKart are some of the major financial firms among those that have adopted AA technology.