FIS has debuted a platform that lets its clients’ customers share banking data.
The Florida-based global FinTech has signed agreements with data networks Akoya, Envestnet, Yodlee, MX and Plaid to integrate into the FIS Open Access platform, the company said in a Thursday (Feb. 8) news release.
This open banking platform, the release said, lets consumers share their financial information with a larger number of third-party financial apps and services.
“The shift to Open Banking is accelerating, and last year the Consumer Financial Protection Bureau (CFPB) proposed a Personal Financial Data Rights rule establishing consistent industry standards for consumer data access and protection,” the release said.
According to FIS, the platform lets consumers access and share their financial data in “a secure, stream-lined and controlled manner,” letting them work with third-party financial services app providers and control what information is shared and with whom.
The platform also gives banks visibility and reporting on where their customers are sharing financial data, which FinTechs they are connecting with and how frequently.
“Consumers of all ages are increasingly using third-party apps to manage their finances when they want, and creating a seamless experience for them to do this is crucial for traditional banks and credit unions as they look to retain and grow their customer base,” said Hashim Toussaint, general manager for digital solutions at FIS.
“Enabling the world’s adoption of open banking is foundational to our mission to advance how the world pays, banks and invests.”
Touissant’s comments on open banking are reflected in recent research by PYMNTS Intelligence that shows growing consumer interest in the concept.
“By enabling the sharing of customer financial data between banks and third-party service providers through application programming interfaces (APIs), open banking is reshaping the traditional banking system,” PYMNTS wrote late last year.
Open banking boosts consumer payouts in particular, with the research showing that 42% of consumers primarily receive payouts directly to their bank accounts, whether from merchants, service providers or government agencies.
“Open banking enables these customers to link their bank accounts directly using their existing logins and receive funds immediately,” PYMNTS wrote. “However, close to half of consumers still receive payouts without a connectivity tool.”