A new type of vendor service aims to make life easier for bankers who want to assess the risks of working with certain data aggregators.
Several large banks, including Bank of America and JPMorgan Chase, have recently piloted the Streamlined Data Sharing Risk Assessment offered by The Clearing House and the risk-assessment providers TruSight and KY3P. The two companies collect responses from aggregators to hundreds of questions and review their internal documents as well as conduct on-site visits.
The service is intended to produce standard risk assessments of data aggregators like Plaid, Finicity, Envestnet Yodlee and Intuit, which banks can then reference before deciding to forge a data-sharing agreement with one of the firms. Helping banks complete that due diligence is crucial to unlock data securely, better enabling customers to use third-party fintech apps like Venmo and Betterment.