A host of financial industry leaders have confirmed the launch of a new service to boost efficiency for financial apps and data aggregators to provide assessment information to financial institutions (FIs).
As well as this, the launch aims to enable each FI to conduct its own risk assessment, utilising the Streamlined Data Sharing Risk Assessment provided by TruSight and KY3P by IHS Markit – third-party assessment services.
“This centralised approach can reduce the need for financial apps and data aggregators to provide the same risk information again and again as they engage in data exchange agreements with FIs,” said Ben Isaacson, Senior Vice President and Connected Banking Product Executive at The Clearing House. “It aims to help financial institutions of all sizes meet their risk requirements more efficiently and cost effectively.”
Currently, each time a FI wants to establish or renew a connection with a financial app or an aggregator, it separately requests and receives the information relevant to its risk assessments, resulting in redundancy and inefficiency that slows the process of signing and executing agreements with data exchange partners.
The Streamlined Data Sharing Risk Assessment was piloted by The Clearing House with participation by Finicity, Plaid, Bank of America, JPMorgan Chase, PNC Bank, TD Bank, Truist, U.S. Bank, and Wells Fargo.
“Open banking is transforming the way consumers and organisations are able to share and benefit from their financial data,” said Ryan Christiansen, senior vice president of data access partnerships, Finicity. “As an industry, we have a responsibility of supporting these efforts with the highest levels of security. This pilot – and the programs that will follow it – will help deliver that in a streamlined and simplified process.”