Envestnet | Yodlee, a leading data aggregation and data analytics platform for digital financial services, announced it is first in market with a single API solution aligned with the Second Payment Services Directive (PSD2) and Open Banking Application Protocol Interface (API) specifications in the UK for account information services.
The platform’s ease of integration with a single API aims to improve financial innovation, consumer data protection and data acquisition security for third party financial service providers.
PSD2 stakeholders and the Open Banking Implementation Entity have been detrimental for Envestnet | Yodlee to ensure compliance. Working closely together, the company was able to 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.
Envestnet | Yodlee will continue to process all data through its 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.
Moreover, Open Banking, Ltd. has adopted Open Authorization (OAuth 2.0), the first set of technical security standards for the Open Banking era. Developers using the Envestnet | Yodlee Financial Data Platform API will not need to worry about dealing with multiple APIs and data formats or handling user credentials. Envestnet | Yodlee will slowly migrate the existing accounts that are credential-based to token-based access (OAuth 2.0).
Mark Herlihy, VP International Markets at Envestnet | Yodlee, said: “We are proud to be a leading data aggregator to support the Open Banking movement, a truly revolutionary development that represents the wave of the future for global financial services markets across the world. 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.”
Open Banking was created by the Competition and Markets Authority (CMA) in 2016 to enable 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.