The historical past of account aggregation has been fraught. Early API requirements all through the Nineteen Nineties and 2000s struggled to get widespread adoption and common upkeep, whereas screenscraping continues to be frowned upon — particularly when not whitelisted — by many monetary establishments. Due to this, customers have too usually struggled to entry their very own knowledge in ways in which they’ve wished. As an illustration, as a substitute of having the ability to signal into a private monetary administration app and see all their accounts in a single place, they’ve needed to reconnect their accounts again and again, typically to the purpose that the entire thing doesn’t appear worthwhile.
Because the use instances for open banking develop into extra obvious, the demand for a brand new method to aggregation turns into clearer. Lenders can use account connections to immediately validate funding and id, landlords can verify whether or not there are adequate funds in a buyer’s account earlier than charging lease (thereby avoiding bounce-back charges), and retail bankers can be sure that the funding and verification course of is seamless and safe — simply to call a couple of examples.
The reality is that account aggregation has been in want of a rehaul for many years, and as folks begin to perceive the probabilities which might be out there with open banking they’ll be extra more likely to demand this new method, an method we name fashionable connectivity.
Trendy connectivity supplies entry to tokenized, credential-free API connections constructed with the very best safety requirements. These fashionable connections intelligently route prospects to the very best expertise for every connection and supply the power to approve, handle, and revoke entry to their monetary knowledge.
Options of Trendy Connectivity
- Tokenized, credential-free connections that use OAuth 2.0 protocols
- Options at every stage of integration: infrastructure stage, API stage, aggregation stage, and the UX stage, giving a full worth chain supply mannequin
- Clever routing to a number of connectivity strategies for full protection and an enhanced consumer expertise
- Developed and deployed shortly
The attraction of contemporary connectivity turns into clear in distinction with the legacy method of display scraping, which is much less safe (as prospects should share credentials) and middleman managed.
Luckily, the variety of fashionable connections is rising shortly through inner APIs that tie collectively tech stacks and exterior APIs that permit monetary providers corporations to simply launch open banking initiatives to allow them to management and permission who has entry and what they’ve entry to. These partnerships allow tens of millions of calls which might be tokenized, credential-free connections — all of which characterize the way forward for account aggregation.
To be taught extra, learn the white paper “A New Approach to Financial Account Aggregation: Modern Connectivity.”