Yodlee and Andera today announced a strategic alliance that will unite best-of-breed technologies to provide retail financial institutions with the most comprehensive online account opening and funding solution in the market.
Under the terms of the agreement, Andera will be the exclusive provider of account opening technology to Yodlee, and Yodlee will be the exclusive provider of account verification and funds transfer technology to Andera, with the combined solution being available from both companies to all financial institutions.
According to a 2006 Aite Group report entitled Something for Everyone: Online Account Opening Delivers the Goods..."online account opening functionality is quickly becoming a competitive must-have for financial institutions. Among participants in an Aite Group research panel of Top 50 banks, 72 percent indicated that they offered account opening and funding (62 percent) or account opening without funding (10 percent)." The report also concluded that "the potential savings from online account opening solutions are compelling. For example, a mid-sized bank with 20 percent of new accounts opened online could realize a whopping $1,125,000 in savings over traditional account opening methods."
Andera is the #1 provider of online account opening solutions to U.S. banks and credit unions, serving more than 130 customers nationwide. Yodlee is the #1 provider of Instant Account Verification technology, processing more than four million verifications per year. By incorporating Yodlee's patented Instant Account Verification technology, small and mid-tier financial institutions gain access for the first time to single-session funding account verification, with easy delivery through a single Andera contract. Previously, instant account verification technology has been available only to the largest financial institutions.
"The ability to verify ownership of an applicant's held-away account prior to initial funding is an increasingly important aspect of the ideal online account opening process," said Charlie Kroll, CEO of Andera. "Unfortunately, well-known approaches have typically required an offline process to complete, significantly increasing abandonment rates. Yodlee's instant account verification technology enables true single-session verification with astonishing consistency and effectiveness, and when integrated with Andera's real-time account opening platform, represents a truly unique offering in the market."
Meanwhile, with Yodlee offering the combined solution to its top-tier customer base, larger financial institutions gain ready access to Andera's market-leading platform, previously marketed primarily to financial institutions outside of the top tier.
"Clearly, effective account opening is a key driver for the online channel and a significant cost reducer and revenue generator for financial institutions," said Joseph Polverari, senior vice president, strategy and development at Yodlee. "By integrating our respective technologies, Yodlee and Andera can deliver the best account opening solution and the best value for all of our customers."
The two companies will also be collaborating to integrate Yodlee's funds transfer technology with Andera's account opening application. Yodlee FundsTransfer is an online, interbank funds transfer application that increases the speed and reduces the risk of online money movement. Yodlee FundsTransfer has already processed over $1 Billion in transaction volume since its launch only nine months ago. Andera will be integrating and reselling Yodlee FundsTransfer as the preferred platform for its initial deposit transactions, as well as supporting seamless integration for financial institutions who select Yodlee's FundsTransfer for ongoing, account to account ("A2A") services after the new account is opened.
The integrated Andera-Yodlee Account Opening solution will be available from both companies in early Q4, 2007. For Yodlee customers, the Account Opening solution will be sold standalone and as part of the Yodlee MoneyCenter online banking product suite. For Andera customers, Yodlee's AccountVerification and FundsTransfer will be offered as options within its New Accounts Online suite.