Bank of America, JPMorgan Chase, PNC Bank, TD Bank, Truist, US Bank, and Wells Fargo have piloted a data sharing risk assessment service that streamlines risk evaluations of data aggregators and financial apps.
Today, each time a financial institution wants to establish or renew a connection with a financial app or an aggregator, it separately requests and receives the information relevant to its risk assessments, resulting in redundancy and inefficiency that slows the process of signing and executing agreements with data exchange partners.
The new centralised service, provided by TruSight and KY3P by IHS Markit and incorporating work developed through The Clearing House’s Connected Banking initiative, can streamline this process, making it easier for banks to onboard customers into data aggregation services, such as Plaid and Finicity.
TruSight, which performed the pilot assessments, was able to simplify information gathering from participating data aggregators and then provide it over a secure platform to each of the pilot financial institutions.
“This centralised approach can reduce the need for financial apps and data aggregators to provide the same risk information again and again as they engage in data exchange agreements with FIs,” says Ben Isaacson, SVP and Connected Banking product executive at The Clearing House. “It aims to help financial institutions of all sizes meet their risk requirements more efficiently and cost effectively.”