FinTech Automation (FTA), an infrastructure-as-a-service platform, announced that it has partnered with Finicity to access consumer data to ensure secure account validation during the account opening process. The collaboration also will drive a transition away from outdated validation methods such as time-consuming micro-deposits.
“Integrating consumer-permissioned data from Finicity’s open banking network streamlines account opening and funding, making it safer, easier, and faster, which reduces account opening abandonment for our customers,” FinTech Automation founder and CEO David Park said. “It’s a great example of how open banking can improve banking and personal financial management offerings and their customer experience at the same time.”
Courtesy of the agreement, FTA customers will be able to connect to their primary accounts in order to fund new investment accounts. FinTech Automation will also be able to use consumer-permissioned data from Finicity’s open banking platform to show customers a more holistic view of their finances that takes into account holdings across multiple financial and wealth accounts. Customers will be able to download and integrate transactions from their wealth accounts into their personal financial management tools.
“Secure account opening is crucial for financial institutions today,” Finicity President and COO Andy Sheehan said. “Open banking data can reduce the friction and mitigate the risk associated with digital account opening. FTA’s integration of Finicity’s open banking platform will further empower consumers to take charge of their financial data and financial futures.”
Headquartered in Dallas, Texas, and founded in 2016, FinTech Automation offers a platform that automates administrative activities, integrates enabling technologies, and supports management with instant data and dashboards. The company’s platform and Acceleration Cloud give businesses the ability to manage APIs, relationships, and methods between workers, clients, and documents in an integrated, fully-compliant fashion. With 30 fintech partners and more than 50 advisory firm clients, FinTech Automation helps SMEs take advantage of innovative new financial technologies.
Finicity has been a Finovate alum since 2014. The company participated in our developers conference, FinDEVr 2021, last year with its VP of Data Science Nick Baguley giving a talk on Connecting Siloed Financial Data: Open Banking’s Impact on the Financial Experience. A few months later, Baguley was recognized by HousingWire in its 2021 Tech Trendsetter Awards for improving income identification and categorization to recognize a broader range of income streams. Also earning plaudits in December was Finicity CEO Steve Smith, who was nominated for Executive of the Year by the Lendit Fintech Industry Awards.
Founded in 1999 by Nick Thomas, Warren Rosner, and Smith, Finicity is based in Salt Lake City, Utah. The company was acquired by Mastercard in June 2020 for $825 million.