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

How Atomic uses payroll data to unlock opportunities for banks, fintechs and their customers

  • Lindsay Davis, head of markets at Atomic, spoke at Tearsheet's DataDay Conference about how payroll data can be used by financial providers to unlock more opportunities.
  • By using pay stubs, lenders can gather insights not just on income, but also on the employment status of the consumer.
Iulia Ciutina | July 01, 2022
Data

72% of consumers would switch their bank if it didn’t support their preferred fintech app

  • Open banking is becoming a hit across the globe. But in the US adoption has been slow.
  • Things are changing though. In this year’s DataDay Conference, Crystal Anderson, VP of product at MX, talks about where US FIs are at in embracing open banking.
Rivka Abramson | June 30, 2022
Data

Argyle’s powering complex banking decisions with employment data

  • Argyle is working on getting workers more control over their employment data — who it is shared with, what it is used for.
  • Today lenders have access to a much wider range of data points, helping them make faster and more accurate decisions.
Subboh Jaffery | June 30, 2022
Data

Building the underlying pipes for safe data transfer: How Akoya is using APIs to scrape away screen scraping

  • Screen scraping is getting old. Akoya favors an API-first, fully consumer-permissioned approach that takes care of consent, security, and storage all at once.
  • Standardization and prioritization continue to be the biggest challenges faced by API-first approaches, but Akoya says it is used to getting the hard work done first.
Rabab Ahsan | June 29, 2022
Announcement, Data

DataDay Conference 2022: All session videos

  • Tearsheet’s DataDay Conference focuses on financial data and the ecosystems currently being built by data aggregators, banks, payment firms, and fintechs.
  • Here are the full videos from the sessions we held on June 21, 2022.
Shabih Rao | June 24, 2022
More Articles