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Americans increasingly manage their money online, often using fintech apps that access consumers’ financial data.
The current system of data aggregation and sharing limits consumer control and puts data privacy at risk.
The Clearing House set out to increase awareness and facilitate solutions to address data privacy issues.
The goal is to act in the best interest of consumers, enhance safety and foster efficiency in financial services.
Meeting customers’ security and privacy expectations in this age of data proliferation will require a relationship between banks and fintechs that is focused on serving a mutual customer.
To make this shift, The Clearing House is advocating for new technology standards and infrastructure, risk management requirements and legal agreements, and ongoing industry collaboration – collectively known as Connected Banking.
To make this shift, The Clearing House is advocating for new technology standards and infrastructure, risk management requirements and legal agreements, and ongoing industry collaboration – collectively known as Connected Banking.
Enabling Consumer Permission and Control Mechanisms
Surveys show consumers want greater control over their data. These mechanisms would allow consumers to authorize and control the sharing of their financial information.
Support for Application Programming Interfaces (APIs) Across the Industry
APIs allow consumers to share information with fintech apps without giving away their bank account log-in credentials. Migrating to APIs offers better security and greater control over personal data.
Entirely voluntary, the use of a standardized model legal contract between banks and fintechs would be a valuable starting point, saving time and resources, making deployment faster and cheaper.
API Technical and Security Standards
Common data sharing and security standards (currently being developed with FDX), would facilitate faster and easier technology implementations between banks and third parties enabling a more rapid migration to toward API based data sharing.
Third Party Due Diligence
A common process to evaluate the safety and security of third party apps would streamline and accelerate required compliance processes that help ensure banks and their customers can trust the apps which have access to a customer’s data.
Latest News
Connected Banking White Paper: Enabling Innovation and customer control through a more secure exchange of financial data
Americans increasingly manage their money digitally though mobile financial apps. These services provide consumers benefits that will expand as apps and banks identity new ways to use data to better serve customers. However, protections around the use of bank held data have not kept pace with the growth of financial apps. Read More
As mobile apps proliferate, data protection has to keep up
Mobile apps have grown at tremendous pace, taking hold of countless areas of American life and offering consumers unprecedented levels of convenience. Read More
The Clearing House Releases Model Agreement to Help Facilitate Safe Sharing of Financial Data
Today, The Clearing House (TCH) is releasing a Model Agreement to help financial institutions and fintech companies establish legal terms for the sharing of bank-held consumer data. Read More
Fintech Apps: Consumer Privacy Concerns Remain High
Nearly one-third of U.S. banking consumers use online and mobile fintech apps to help manage… Read More
APIs are the way forward for better data security
Capital One’s decision to share customer data with third-party services through application programming interfaces deserves… Read More
Learn more about The Clearing House’s consumer research on fintech apps and data privacy.
New insights from 2021 Consumer Research:
Data Privacy and Financial App Usage