There is an ongoing conversation amongst key players in the financial services space about the future of financial data sharing. We recently wrote a white paper that explores this topic in depth and offers a clear path forward for financial institutions and fintech firms.
At the heart of the issue is the safety and security of the financial system as global banking continues to move toward open banking standards. There are risks hiding in the coming changes, but also great opportunity – both for banks and credit unions and the consumers they serve.
In our white paper, we explore the ways leading banks and fintech firms are joining forces to advance the industry overall. How they are sharing the information they each store, with the permission of their joint customers. The paper also speaks to how these leaders are dealing with unresolved concerns regarding who should control access to this data and how to ensure data security.
The best way to move forward is for both parties to work together. The lingering question however, is how can that best be accomplished?
One thing is for certain – the old method of screen scraping that fintech firms have employed to gain access to consumer data in the past is outdated and risky. As such, many of the country’s largest banks are no longer supporting screen scraping. Instead, they are moving to implement their own APIs or Application Programming Interfaces and OAuth 2.0 Servers to drive external third-party fintech companies to connect in a more secure manner. This is the better approach as it allows financial services partners to better protect their customers’ financial information.
This is the clear path forward.
Xtensifi has a particular expertise for integrating financial institutions and their fintech partners via API. To learn more about the future of open banking and the opportunities available for all financial services companies to better serve their customers, download our white paper today.