New agreement signifies alignment between TD and the financial technology company about access to customer financial data
TD Bank branch in Chinatown, Washington, D.C. (Credit: MBisanz/Wikipedia.)
TD Bank Group (TD) today announced a new data-access agreement with Finicity, which lays the groundwork for customers to request that TD transfers their financial data for services they want to use, including personal financial management apps supported by Finicity.
The North American agreement signifies alignment between TD and Finicity about protocols to be followed by Finicity when accessing financial data of a TD customer to support the customer’s request to use financial services supported by Finicity. At the customer’s request, TD will transfer the customer’s financial data to Finicity through a technology known as Application Programming Interfaces (APIs) that may eventually eliminate the need for customers to share their banking login ID or password in order to access third-party financial products and services.
Consumers who currently use financial products and services provided by some Fintechs are having to share their banking credentials to be able to access these products and services. An API-based approach will help raise the level of data security for customers who want to use third-party financial management apps.
“The significant surge we have seen in the adoption of our own digital products and services has accelerated our work to leverage a market-developed technology solution to help increase the comfort level of customers looking to access digital services that are outside their bank,” says Rizwan Khalfan, Chief Digital and Payments Officer, TD. “Our customers want digital solutions and we are focused on supporting their choices.”
The agreement with Finicity is part of TD’s response to customers’ need to leverage data stored with financial institutions for digital services. TD is a founding member of the Financial Data Exchange (FDX), a US-based industry consortium that promotes solutions to better protect customer data, supports an API-based technology protocol and that recently launched in Canada with the support of leading Canadian banks and financial technology companies. TD also recently invested in Akoya, a new, US-based company that will operate an API-based network for a more secure way of sharing financial data. In Canada, TD has been involved in government consultations to move Consumer-Directed Finance forward, while helping to protect consumer interests.
“We are committed to delivering superior data access, quality and security through the Finicity Open Banking platform, transforming the way consumers interact with and benefit from their own financial data,” said Finicity CEO Steve Smith. “Together with TD, we are helping consumers to become more empowered with their financial data and utilize it in ways to help improve their financial lives.”
Source: Company Press Release