Open Banking, Partnership Announcements
TD creates North American data-access agreement with Finicity
New agreement signifies alignment between TD and the financial technology company about access to customer financial data
TORONTO, August 7, 2020 – TD Bank Group (TD) today announced a new data-access agreement with Finicity, which lays the groundwork for customers to request TD to facilitate the transfer of their financial data to services they want to use, including personal financial management apps supported by Finicity.
The North American agreement signifies alignment between TD and the financial technology company (Fintech) about how Finicity will access a customer’s financial data once directed by a customer of both TD and the Fintech. On the customer’s request, TD will transfer the customer’s financial data to the Fintech through a technology known as Application Programming Interfaces (APIs) that may eventually eliminate the need for customers to share their banking login ID or password in order to access third-party financial products and services.
Protecting Consumer Data
Consumers who are currently using financial products and services provided by some Fintechs are sharing their banking credentials in order to access these products and services. An API-based approach will help raise the level of data security for customers who want to use third-party financial management apps.
“The significant surge we have seen in the adoption of our own digital products and services has accelerated our work to create a market-led technology solution that will give customers looking to access digital services that are outside their bank, more comfort that they are transferring their financial data safely,” says Rizwan Khalfan, Chief Digital and Payments Officer, TD. “Our customers want digital solutions and we are focused on supporting their choices.”
Consumer-Directed Finance and Open Banking
The agreement with Finicity is part of TD’s response to customers’ need to leverage data stored with financial institutions for digital services. TD is a founding member of the Financial Data Exchange (FDX), a US-based industry consortium that promotes solutions to protect customer data, supports an API-based technology protocol and that recently launched in Canada with the support of leading Canadian banks and Fintechs. TD also recently invested in Akoya, a new, US-based company that will operate an API-based network for the secure sharing of financial data. In Canada, TD has been involved in government consultations to move Consumer-Directed Finance forward, while helping to protect consumer interests.
“We are committed to delivering superior data access, quality and security through the Finicity Open Banking platform, transforming the way consumers interact with and benefit from their own financial data,” said Finicity CEO Steve Smith. “Together with TD Bank, we are allowing consumers to become more empowered with their financial data and utilize it in ways that improves their financial lives.”
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group (“TD” or the “Bank”). TD is the sixth largest bank in North America by branches and serves over 26 million customers in three key businesses operating in a number of locations in financial centres around the globe: Canadian Retail, including TD Canada Trust, TD Auto Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD Insurance; U.S. Retail, including TD Bank, America’s Most Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in TD Ameritrade; and Wholesale Banking, including TD Securities. TD also ranks among the world’s leading online financial services firms, with more than 14 million active online and mobile customers. TD had CDN$1.7 trillion in assets on April 30, 2020. The Toronto-Dominion Bank trades under the symbol “TD” on the Toronto and New York Stock Exchanges.
Finicity’s mission is to help individuals, families and organizations make smarter financial decisions through safe and secure access to fast, high-quality data. The company provides a proven and trusted Open Banking platform, that puts consumers in control of their financial data, transforming the way we experience money — everything from budgeting, payments, investing and lending. Finicity partners with influential financial institutions and disruptive Fintech providers alike to give consumers a leg up in a complicated financial world, helping to improve financial literacy, expanding financial inclusion, and ultimately leading to better financial outcomes. Finicity is headquartered in Salt Lake City, UT.