First, he signed up with MX. Now Fiserv is expanding its open banking platform with Finicity – Digital Transactions

0

For the second time in a week, Fiserv Inc. dipped into open banking technology, announcing on Wednesday a partnership with Finicity, an open banking platform provider owned by Mastercard Inc. The deal follows the partnership announced last week by Fiserv with MX Technologies Inc.

The latest agreement will allow financial institution customers of Fiserv to allow consumers to provide permission to securely share their account information with applications that use Finicity’s platform. Data will be shared via AllData Connect by Fiserv service, a secure portal through which consumers can consent to sharing their financial data with third-party applications.

Finicity will access tokenized consumer data through AllData Connect. AllData Connect issues an identification token in place of the consumer’s username and password. The third party is then able to provide this token to the financial institution to access the consumer’s data.

As a result of the agreement, consumers will have more payment choices, access to a growing range of financial services and an overall improvement in financial literacy and well-being, Fiserv said.

“The ability to share data directly and securely is a key requirement for enabling open banking and finance,” said Marc DeCastro, research director at IDC Financial Insights, in a prepared statement. “With the industry moving towards standardizing access to data, it is important that financial institutions of all sizes are able to tokenize customer data and make it accessible to third parties. connectivity will advance open finance by facilitating the seamless and secure financial interactions that consumers are looking for.

For financial institutions, the benefit of the partnership will be the ability to simplify the complexities of consumer authorized data and enable transactions via access to application program interfaces. Financial institutions will be able to better support their customers’ digital banking and financial management preferences and allow them to share their data with the apps and services they select. Fiserv said. Financial institutions can also obtain additional information about their customers and the third-party applications they access.

“Banking relationships remain central to most people’s financial lives, but they also expect access to their financial data when and where they want it,” said Justin Jackson, product manager for digital payments at Fiserv, in a prepared statement. “Direct connections via APIs eliminate the need for consumers to share usernames and passwords with third parties, providing convenient and simplified access to their data in a more secure way.”

Mastercard, which acquired finicity in 2020 for $825 million, says the agreement will allow consumers and organizations to authorize the use of their financial data for their benefit.

“The strong payments connectivity between Mastercard and Fiserv through tokenization, traditional processing and beyond extends across infrastructure, applications and services to the secure and highly reliable API connections we enable through the open banking,” Ryan Christiansen, senior vice president, data access partners for Mastercard said in a prepared statement.

Share.

About Author

Comments are closed.