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Envestnet | Yodlee Unveils Single API Solution to Support PSD2, Open Banking Compliance

Are you looking for a single API solution to make it easier to comply with the U.K.’s PSD2 and Open Banking API specifications for account information services? If so, Envestnet | Yodlee has got your back.

“We are proud to be a leading data aggregator to support the Open Banking movement, a truly revolutionary development that represents the wave of the future for global financial services markets around the world,” VP of International Markets at Envestnet | Yodlee Mark Herlihy said. “We have always been an advocate for innovative financial services that adhere to the highest standards of data security,” he added. “Now we are able to further this mission by enabling developers to easily integrate bank data at scale in compliance with the Open Banking API protocol.”

The new solution is a result of close collaboration between the company, PSD2 stakeholders, and the Open Banking Implementation Entity. Envestnet | Yodlee has developed and built a robust consent architecture that enables developers to rely on a single API that “encapsulates the consent for account access requirements” necessary to fulfill PSD2.

Developers using the API will be able to avoid having to work with multiple APIs, differing data formats, as well as user credentials. Financial institutions, fintechs, and individual consumers stand to benefit from greater access to financial innovation, while protecting consumer data and securing data acquisition by third party financial service providers and fintechs.

Envestnet | Yodlee’s new API comes just a few months after the company announced a strategic partnership with open banking platform provider and fellow Finovate alum Token. Steve Kirsch, founder and CEO of Token, said at the time: “When it comes to PSD2, developers are not going to support hundreds of unique bank APIs; they will only write to one common API, maybe two.” He explained that banks that decide to go on their own with proprietary APIs in this environment stand to lose big when it comes to “deliver(ing) the variety and freedom that customers expect in the digital age.”

Founded in 1999, Envestnet | Yodlee demonstrated its Financial Health Check solution at FinovateFall 2017, winning Best of Show. The company finalized its $195-million acquisition of wealth tech solutions company, FolioDynamix, earlier this month. Last fall, Envestnet | Yodlee integrated its risk insight solutions with Fannie Mae’s Desktop Underwriter validate service. Envestnet | Yodlee launched its expanded data analytics portfolio for wealth managers in May and a suite of risk reporting tools in March. The company also participated in our developer’s conference in 2016, presenting Fast Track API Integration with Envestnet | Yodlee at FinDEVr Silicon Valley.

With a market capitalization of $2.4 billion, Envestnet | Yodlee trades on the New York Stock Exchange under the ticker, ENV. Judson Bergman is chairman and CEO.