Data

Envestnet | Yodlee and Charles Schwab sign agreement to share data

  • More major institutions are cracking down on screen scraping.
  • Schwab joins Chase and Citi in signing data sharing agreements with Envestnet I Yodlee.
close

Email a Friend

Envestnet | Yodlee and Charles Schwab sign agreement to share data

Data aggregation platform Envestnet | Yodlee announced today that it has come to terms with Charles Schwab on a financial data access agreement. This framework helps Schwab’s clients share their personal financial information with selected services to manage their financial wellness.

What’s going on: The agreement enables Charles Schwab clients to safely and securely share and access their financial data with more than 1,200 third-party financial service providers connected to the Envestnet | Yodlee Platform.

  • Schwab clients can expect an overall improved user experience with faster and more reliable access to their personal financial information through the firm’s API .
  • Access to client financial data is based on client consent and tokenization, so users don’t have to enter and store usernames or passwords with any third party.
  • Envestnet | Yodlee connects to the majority of the top 20 U.S. banks and 43 of the 50 largest wealth management and brokerage firms, enabling a data network associated with tens of millions of consumers who use platform-related personalized apps and services.

“Through the agreement, when a Schwab customer uses an Envestnet | Yodlee powered app or service, they will engage through our proprietary Fastlink service,” said Brian Costello, vice president, data strategy & strategic solutions at Envestnet | Yodlee. “Unlike current methods, the username and password does not leave the Schwab environment. Using this token-based security in the Schwab API, Schwab shares customer requested information with Envestnet | Yodlee who provides secure access to the Schwab customer data through the fintech application or provider.”

“This insures the Envestnet | Yodlee powered app or service only receives the Schwab customer data they need while customers control what’s shared with whom,” he said.

The move away from screen scraping: Banks continue to discourage screen scraping, a tactic widely used by fintech firms and other aggregators that involves taking user credentials to access their financial data.

“API-based connectivity in the United States has gained significant momentum and data-access agreements, like the one we’ve signed with Charles Schwab, are critical to enabling the financial services ecosystem,” said Stuart DePina, president of Envestnet.

  • JPMorgan Chase made moves earlier in 2020 to block fintechs from screen scraping.
  • Capital One has cut off access at various times to aggregators accessing user information without a data agreement in place.
  • This was the third data agreement Envestnet | Yodlee signed in the past eight months with a major U.S. financial institution. Citibank and JP Morgan Chase have signed agreements with the data aggregator.

“These types of agreements further enable innovation to thrive for both financial institutions and fintechs and ultimately, the primary beneficiary is the consumer. As more of these agreements are entered, consumers will be empowered to make better financial decisions while benefiting from even stronger security and site reliability,” said Costello.

“The demand for digital tools that provide hyper-personalized, secure and reliable experiences will only continue to rise for millions of customers as the financial landscape becomes more complex and volatile. All types of financial service providers will benefit.”

0 comments on “Envestnet | Yodlee and Charles Schwab sign agreement to share data”

Data

‘We’re going to go where we need to go to solve the customer problem’: Inside Mint’s renewed push into personal finance

  • Mint was a pioneering personal finance app that faded to the background over the years.
  • After years of learning, corporate owner Intuit is out with a new update and strategy to expand beyond the firm's 25 million users.
Zachary Miller | March 19, 2021
Data

With income verification product, Plaid goes deeper into payroll data

  • Plaid launched Plaid Income, its income verification solution for lenders and consumers.
  • The product is the company’s second payroll data solution as it continues to expand into payroll related services.
Rimal Farrukh | March 12, 2021
Data

With Deposit Switch, Plaid helps banks better onboard their customers

  • Plaid announces the release of its automated account funding program, Deposit Switch.
  • Deposit Switch reduces friction during onboarding processes by allowing bank customers to digitally switch paycheck locations.
Rimal Farrukh | January 29, 2021
Data, EarlyStage, Member Exclusive

‘There are 400 million people in sub-Saharan Africa that don’t have formal credit files’: Pngme’s Brendan Playford

  • Africa is seeing the launch of a lot of new financial services and fintech.
  • That provides an opportunity for companies like Pngme to standardize and support financial data sharing.
Zachary Miller | January 05, 2021
Data, Member Exclusive, Podcasts

‘A network problem needs a network answer’: Akoya’s Stuart Rubinstein

  • 11 major banks, plus Fidelity and The Clearing House, have invested in Akoya.
  • The new financial data network expects to have half the deposit accounts in the U.S. connected to the platform next year.
Zachary Miller | December 14, 2020
More Articles