Data

JPMorgan Chase and Envestnet | Yodlee sign data sharing agreement

  • As part of the deal, Chase customers can share their financial information with more than 1,200 third-party apps.
  • Envestnet | Yodlee is working on more deals with major FIs.
close

Email a Friend

JPMorgan Chase and Envestnet | Yodlee sign data sharing agreement

JPMorgan Chase and Envestnet | Yodlee have signed a data sharing agreement providing a framework for the bank’s customers to share and use their personal financial information to make better informed financial decisions.

What’s happening: As a result of this agreement, millions of Chase customers will be able to send their financial information to more than 1200 third-party apps on the Envestnet | Yodlee platform.

  • The core elements of this new agreement include better privacy and security controls, connectivity, and reliability, according to Envestnet | Yodlee CEO Stuart DePina.
  • Chase customers previously needed to provide personal credentials to aggregate data from third party apps. Those credentials were retained on the website and app. Now, that goes away, similar to how single sign-on works.
  • “This will help our customers manage exactly who they give their information to, and understand how their information will be used,” said Bill Wallace, head of Digital at Chase. “They also can cancel that access anytime they want.”

Envestnet | Yodlee moving ahead: Envestnet | Yodlee has 20 years experience aggregating data in the financial services industry. The firm is working to leverage its industry relationships as it prepares for the future.

  • “For the past 18 months, we’ve dug in deep thinking about how to enable clients — both FIs and fintechs — to better deliver greater financial insights to their consumers,” said DePina.

Data as currency: Consumers want more guidance from their financial institutions and they want their bank accounts to talk to their fintech apps.

  • As the data aggregation industry matures, it’s moving away from aggregating data via screen scraping.
  • This deal with Chase and Envestnet | Yodlee uses APIs specifically designed to decrease latency, improve transparency, and simplify the registration process.
  • There’s also a data and analytics layer that Envestnet | Yodlee can feed back to Chase by enriching its data. If enabled, this could give Chase insights into its consumers, their profitability, and how to better support them.
  • The data aggregator is also developing some new analytical tools that benefit the end user. “By using the residue of consumer data, we can benefit the end user, so they can do things like understand and manage duplicate and legacy expenses,” said DePina.

Working with fintechs: This is the second major data sharing agreement within the last six months for Envestnet | Yodlee.

  • Envestnet | Yodlee signed a deal with Citi earlier in 2019, but that didn’t include the technical improvements included in the new Chase deal.
  • The firm is working on several of these next generation with large FIs.

“We think financial institutions have been looking for capabilities to elevate their value propositions,” said DePina.

“We’re seeing a greater number of firms like Chase leverage providers like us to meet the needs of their customers. This marks a shift from institutions doing it themselves to turning to third parties. The marketplace is recognizing that investments in fintech are starting to pay off.

0 comments on “JPMorgan Chase and Envestnet | Yodlee sign data sharing agreement”

Data

Visa has Plaid and now Mastercard acquires Finicity for close to $1 billion

  • Earlier this year, Visa acquired Plaid, a leading financial data aggregation and insights firm.
  • Now, Mastercard is buying Finicity, pointing to the strategic role data aggregation firms play in global payments.
Michael Deleon | June 23, 2020
Awards, Data

Winner of Tearsheet’s Best New Alternative Data Product: Facteus’ Enlightmint

  • The chaos caused by the current pandemic requires new data analytics tools to understand what's happening and chart a path forward.
  • Facteus' Enlightmint is the winner of Tearsheet's 2020 Award for Best New Alternative Data Product.
Zoe Murphy | June 23, 2020
Data

‘More than the new oil’: Conclusions from Tearsheet’s DataDay Conference

  • The pandemic has shifted activity toward digital channels, amplifying the need for safe and secure data sharing between banks and fintechs.
  • Holding data is no longer a differentiator; institutions that thrive will make use of that data to build ongoing customer relationships.
Suman Bhattacharyya | June 19, 2020
Data

Preview of Tearsheet’s DataDay Conference 2020

  • Tearsheet's DataDay conference brings together data firms, banks, and fintechs around financial data
  • June 2 through 4, DataDay is designed for digital finance managers, product, strategy, and connectivity professionals
Tearsheet Editors | May 29, 2020
Data, Podcasts

Case study: How Finlocker and Fiserv enhance data, lower lending costs and increase throughput for mortgage originators to benefit consumer financial wellness

  • The work both firms have done together is a story of collaboration and tapping what each does best.
  • Fiserv's Paul Diegelman will be speaking at Tearsheet's DataDay Conference next week.
Zachary Miller | May 27, 2020
More Articles