According to reporting in the Financial Times, JPMorgan Chase is the latest financial institution to pledge a pivot toward tokenization to make it easier and safer for customers to access third party financial solutions. Tokenization enables FIs to securely send only the limited amount of data necessary to complete transactions, and limits the exposure of customer passwords and other sensitive information. The article, by Laura Noonan, highlights a pair of companies – Envestnet |Yodlee and Plaid – and their agreements to use tokenization in their interactions with Chase and other major FIs.
“Our partnership with Chase will allow further consumer choice, reliability, and insight into how and where their data is being used, along with improved overall financial well-being,” Envestnet | Yodlee CEO Stuart DePina said when his company’s deal was announced last December. “As we move toward API-based connectivity in the United States, relationships like the one we have with Chase are laying the groundwork for this reality by giving consumers greater connectivity across their financial accounts, all accomplished through these types of secure and protected channels.”
The move also represents Chase’s most recent strike against screen scraping, with the FI has long opposed out of concerns that the practice was exploitative of customer data. Noonan’s article notes JPMorgan CEO Jamie Dimon who decried the way “many third parties sell or trade information in a way customers may not understand, and the third parties, quite often, are doing it for their own economic benefit – not for the customer’s” in a shareholder letter in 2016.
On Finovate.com
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Alumni in the News
- Mastercard snaps up RiskRecon.
- Lendio recognized as one of the best places to work by Glassdoor.
- iProov CEO Andrew Bud earns Commander of the Most Excellent Order of the British Empire (CBE) status from Queen Elizabeth as part of his work in driving technology innovation in the U.K.
- Standard Chartered appoints Rene Keller as CIO of CCIB.
- Ayondo chairman resigns.
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