Summary List Placement
The Department of Justice (DOJ) approved Mastercard’s $825 million purchase of the data aggregator, which was first announced in June, TechCrunch reports. Finicity uses APIs to allow users to decide how their financial data is shared and who can make money decisions on their behalf.
It leverages open banking to allow third-party apps access to consumer banking, transactional, and other financial data. Through the acquisition, Mastercard can offer its consumer and business customers greater control over usage of their data, strengthen its open banking platform, and provide more financial services options.
The development and usage of financial services APIs in the US has been driven by private industry, though regulators have recently stepped up their involvement. Screen scraping, the technique historically used by aggregators to amass customer data, for some time granted fintechs unfettered access to all of a customer’s financial data. Financial institutions have since clamped down on this by encouraging or requiring aggregators to access customer data via APIs—retaining their power over consumers’ financial data.
There has been industry movement toward a unified principle when it comes to sharing data, such as two major consortiums—the Financial Data Exchange and the Open Financial Exchange—
Source:: Businessinsider – Finance