18 February 2018
visit www.ebaday.com

Wells Fargo bids to solve third-party data exchange conundrum

08 June 2016  |  7423 views  |  1 Wells Fargo

Wells Fargo has moved to tackle the tricky issue of how it shares customer data with other firms, agreeing a new exchange method with small business accounting software outfit Xero that it hopes will provide a blueprint for other partnerships.

With bank clients increasingly wanting to share their data with third parties, Wells has built an API designed to give users better online security and greater control over what financial information they choose to share.

Specifically, the method creates a secure, tokenised 'handshake' between the Wells and Xero servers. The API eliminates the need for Xero customers to share their Wells Fargo usernames and passwords, and the need for Xero to store them in order to retrieve Wells Fargo account data.

Brett Pitts, head, digital, virtual channels, Wells Fargo, says: "We routinely counsel our customers to never share their username or password. We are glad to provide a system that enables our customers to securely access their account data in third-party software, gives our customers more control of the data they share, and removes their credentials from the data sharing transaction."

The service will begin rolling out for new Xero customers who have Wells Fargo accounts in July, with existing clients that use both firms migrated in the fourth quarter.

Wells Fargo is also talking to other firms about the new method, which it believes could help solve a serious concern for banks. Earlier this year JPMorgan boss Jamie Dimon warned that the increasing trend of clients allowing third parties such as payment firms and aggregators to access their bank accounts "warrants special attention".

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 09 June, 2016, 18:23

Great move. Handing over my Online Banking credentials to a third party startup is an absolute NO NO for me. Which was why I stopped dead in my tracks when I was signing up for Mint a few years ago and haven't signed up for any other PFM service since then. Personally, I'd feel comfortable with this new access method from Wells Fargo. I predict it will truly "provide a blueprint for other" bank-fintech partnerships.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Wells Fargo unveils Android wallet for NFC payments and ATM transactions

Wells Fargo unveils Android wallet for NFC payments and ATM transactions

24 May 2016  |  7406 views  |  0 comments | 7 tweets | 14 linkedin
Wells Fargo promises faster credit for small business customers

Wells Fargo promises faster credit for small business customers

10 May 2016  |  6602 views  |  1 comments | 8 tweets | 4 linkedin
Wells Fargo pumps funds into accelerator startups

Wells Fargo pumps funds into accelerator startups

05 November 2015  |  6120 views  |  0 comments | 7 tweets | 5 linkedin
Wells Fargo creates innovation group

Wells Fargo creates innovation group

23 July 2015  |  10660 views  |  0 comments | 16 tweets | 10 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit http://info.nice.comVisit www.vasco.comvisit www.ebaday.com

Who is commenting?

Top topics

Most viewed Most shared
Saudi central bank provides sandbox for banks to try out Ripple techSaudi central bank provides sandbox for ba...
10720 views comments | 16 tweets | 11 linkedin
Aussie real-time payments platform goes liveAussie real-time payments platform goes li...
8400 views comments | 15 tweets | 41 linkedin
ECB launches staunch defence of cashECB launches staunch defence of cash
8098 views 10 comments | 21 tweets | 26 linkedin
hands typing furiouslyHow can Blockchain Help with AML KYC
7832 views 3 | 9 tweets | 4 linkedin

Featured job

Competitive base + commission + benefits
London, UK

Find your next job