Is this another instance of open banking, American-style?
One of the major topics of discussion at FinovateFall Digital last week was how the open banking phenomenon that is sweeping the globe will manifest itself in the U.S. The consensus was that open banking will not be driven by regulations in the U.S. as it is in many parts of the world. Instead, the ability of U.S. consumers to access third-party financial solutions via their primary banking partner more likely will be driven by consumers themselves. Another key driver will be companies looking to distinguish themselves from rivals by providing better, more diverse solutions from which to choose.
This is very much top of mind as we receive the news that Wells Fargo has entered a data exchange agreement with major financial data aggregation and analytics platform Envestnet | Yodlee. The partnership will enable the bank’s customers to seamlessly and securely share their data with the 1,400 third-party financial apps available on the Envestment | Yodlee Financial Data Aggregation Platform.
The agreement is also a large step for APIs (another major theme at FinovateFall Digital last week). Wells Fargo announced that it will also transition virtually all of its current third-party financial app screen-scraping to API-based data exchange, and added that the partnership with Envestnet | Yodlee represented the bank’s commitment to forge more API-based data exchange agreements with third-parties going forward.
“As we help customers navigate these uncertain times, we want to enable them to seamlessly connect with and use third-party apps that help them manage their finances and do so in as secure a way as possible,” Wells Fargo Strategy, Digital, and Innovation Group SVP Ben Soccorsy said. “Wells Fargo’s agreement with Envestnet | Yodlee does just that. In the future, our customers will be able to share their financial information with Envestnet | Yodlee-supported apps with enhanced ease, security, and control.”
Wells Fargo customers will be able to access third-party services via the bank’s Control Tower digital experience, which sits inside Wells Fargo’s banking app and is also available online. Control Tower enables both consumer and small business banking customers to manage their finances more efficiently, providing a single, unified view of their accounts with Wells Fargo. Importantly, customers will not only be able to turn the data sharing option on and off, they also will be able to designate the specific data they wish to share with third parties.
“API-based connectivity in the United States is leading to an increasingly connected financial ecosystem, spearheaded by the partnerships like the one we now have with Wells Fargo,” SVP of Data Access & Management at Envestnet | Yodlee Chad A. Wiechers said.
With more than 27 million users around the world, Envestnet | Yodlee demonstrated its Insight Solutions at FinovateFall Digital last week. The new offering enables financial services providers to build and scale hyper-personalized financial wellness experiences for their customers. Long-time Finovate alum Yodlee was acquired by Envestnet five years ago for $660 million. Envestnet was founded in 1999 and is headquartered in Redwood City, California.