How can we improve global financial innovation, consumer data protection, and data acquisition security for third party financial service providers?
Supporting the Second Payment Services Directive (PSD2) and Open Banking launch on January 13, 2018, our team at Envestnet | Yodlee is excited to provide simple API integration and improve financial data security for UK financial institutions, fintech companies and consumers. We are proud to be first in market with a single API solution aligned with PSD2 and Open Banking API specifications in the UK for account information services.
To ensure compliance, Envestnet | Yodlee has been working closely with PSD2 stakeholders and the Open Banking Implementation Entity. We have built a robust consent architecture in accordance with the Open Banking specifications, providing developers with the ease of integrating with a single API which encapsulates the consent for account access requirements to comply with PSD2.
During this transition period, we will continue to process all data through our global platform and provide a single API to access data from UK banks, with cleansed and enriched transaction data that is automatically refreshed daily to ensure accuracy.
Open Banking, Ltd., created by the Competition and Markets Authority (CMA), has adopted Open Authorization (OAuth 2.0), the first set of technical security standards for the Open Banking era. Developers who use the Envestnet | Yodlee Financial Data Platform API will not need to worry about dealing with multiple APIs and data formats or handling user credentials. We will slowly migrate the existing accounts that are credential-based to token-based access (OAuth 2.0).
We have always been an advocate for innovative financial services that adhere to the highest standards of data security. Now we are able to further this mission by enabling developers to easily integrate bank data at scale in compliance with the Open Banking API protocol.
In 2016, the CMA in the UK implemented the Open Banking reform, enabling consumers and small businesses to share their data with other banks and third parties. January 13, 2018 marks the launch of UK’s Open Banking along with PSD2, the revised payment services directive that requires European banks to provide third party companies with access to their customers’ financial accounts through open APIs.
This represents the beginning of a new era for the financial services industry, as both innovation and competition will become greater among traditional banks and alternative financial services.
To learn more about Open Banking starting in January 2018 and what it means for financial institutions and fintech companies, watch our recent on-demand webinar.