Automation, Finicity Partner on Open Banking Data
Infrastructure as a service platform FinTech Automation (FTA) signed an agreement with Mastercard company Finicity on Tuesday January 4 to access consumer information for secure account validation and ownership when opening new ones. accounts.
Consumers can now connect their main accounts to deposit funds into a new investment account, which will minimize risk by verifying the owner of an existing account.
“Secure account opening is a must for financial institutions, and open banking data can improve the process and mitigate the risks associated with digital account opening,” said Andy Sheehan, President and COO from Finicity, in the joint announcement.
“FTA’s integration of Finicity’s open banking platform will empower consumers to take charge of their financial data and their financial future,” said Sheehan.
FTA will also use consumer authorized data from Finicity’s open banking platform to give consumers a complete picture of their finances across all of their financial and wealth accounts, and allow customers to upload all transactions from their wealth accounts to their personal financial management tool.
“The integration of consumer-authorized data from Finicity’s open banking network streamlines account opening and funding, making it safer, easier and faster, reducing account opening abandonment for our customers. customers, ”said David Park, Founder and CEO of FinTech Automation, in the announcement.
“This is a great example of how open banking can improve personal banking and financial management offerings and their customer experience at the same time,” Park said.
The new platform will also allow financial institutions and FinTechs to integrate additional services into existing software.
Related: CEO of Finicity: regulatory patchwork slows down efforts to open banks in the United States
Finicity CEO and co-founder Steve Smith recently told Karen Webster, CEO of PYMNTS, that the regulations have failed to keep up with the progress of U.S. companies in innovating the payments systems that underpin the industry. Digital Economy.
In open banking, the lack of a pre-existing regulatory framework for data portability is holding back innovations that other markets may soon take for granted, Smith said.