Fidelity has launched a new data sharing hub called Akoya in a bid to end screen scraping and clarify data...
Third party data sharing is becoming more prevalent in financial services as fintech providers increasingly provide more personal financial management solutions. In Europe the Revised Payment Services Directive (PSD2) is also revolutionizing data sharing for the fintech market.
American Banker provides insight on the pros and cons of data sharing also including insight from Wells Fargo and JPMorgan, who have developed leading data sharing partnerships and solutions. While the majority of the challenges to data sharing are refuted by technology experts there are a number of considerations that have limited the data sharing process.
Some of banks' leading concerns for data sharing include connectivity risks, system overloads and differing regulatory standards. Data can be affected when transferred to a third party, it can be difficult to determine data being extracted and system updates can affect data flow. Banks have also reported system overloads from data extractions at peak hours. Additionally, banks report that differing regulatory controls and standards can cause security risks when working with third party data aggregators. Source
With open banking starting last week in the UK, we might soon see a global push as Hong Kong is looking to explore the idea; the CFPB in the US recently came out with data sharing guidelines that look to begin creating a framework for future legislation; there is not yet the expectation that Hong Kong will adopt such regulations but they did ask for banks and fintechs to weigh in on the open API framework; the FT also sits down with former Barclays CEO Antony Jenkins to further discuss open banking and what it could mean for all participants. Source.
JPMorgan Chase plans to block fintechs from screen scraping as they believe the practice is putting the bank at greater...
The OCC released data sharing guidelines that have been met with mixed reviews, especially amongst fintechs and data aggregators; “I...
Akoya is currently Fidelity’s data-sharing arm but now will become its own company, owned by Fidelity, The Clearing House and...
Writing his weekly column in Forbes Ron Shevlin of Cornerstone Advisors talks about a few different points of view when...
In December JPMorgan Chase CEO Jamie Dimon said the bank was working on creating their own API for data sharing;...
Despite the risks commonly cited by market participants, trading desks can leverage sensitive information to their advantage while complying with regulations and protecting that data.
Open Banking, seen as a potential game changing regulatory change, is set to launch in the next few days in the UK; Open Banking requires banks to allow fintechs and other third parties to have access to customer data if the consumer agrees to grant access; the new law will allow for a safer data exchange, in the past consumers shared their login details and third parties scraped the data, and standardize access across the UK and Europe; while banks have pushed back on the coming change this will allow customers to better control their information and tailor services to their lifestyles. Source.