Wells Fargo has partnered with data aggregation and analytics platform Envestnet Yodlee to allow customers to securely share financial data with third-party apps, the lender said Thursday, as banks and fintechs grapple with how best to keep customer information safe.
Envestnet Yodlee has more than 1,400 apps on its financial data aggregation platform, which is powered by an application programming interface. Wells Fargo intends to transition 99% of current third-party screen-scraping to API-based data exchange.
Ben Soccorsy, senior vice president in Wells Fargo’s strategy, digital and innovation group, said that signing the data exchange agreement with Envestnet Yodlee is a “big step” toward allowing consumer and small business customers to manage finances on their preferred platform.
“As we help customers navigate these uncertain times, we want to enable them to seamlessly connect with and use third-party apps that help them manage their finances and do so in as secure a way as possible,” Soccorsy said.
Wells Fargo said it will integrate Envestnet Yodlee into its Control Tower offering, available through online banking and the Wells Fargo app, which provides customers with a single view of their digital financial footprint. Through Control Tower, customers will be able to turn on and off data sharing with Envestnet Yodlee apps, as well as select the information they are willing to share with the apps.
The interface used between Wells Fargo and Envestnet Yodlee will use a “secure, tokenized ‘handshake’ between the companies’ servers,” Wells Fargo said, which will share customer financial data while maintaining user privacy.
Envestnet Yodlee will access Wells Fargo’s data aggregation through the bank’s Gateway Channel, an open API channel that allows commercial, corporate and other third parties to integrate customer financial information into their own products.
Wells Fargo plans to begin integration of Envestnet Yodlee with select customers later this year.
Chad Wiechers, senior vice president of data access and management at Envestnet Yodlee, said the agreement with Wells Fargo gives customers “more control and an improved overall financial wellbeing — something that is vital during a particularly uncertain economic landscape.”