BofA Simplifies Money Management for Customers Using Third-Party Apps
Bank of America is testing a service enabling its customers who use third-party data aggregators to view their financial information in one place. BofA is testing the capability with two financial data aggregators to enable customers to securely connect data from their bank accounts to third-party money management apps.
Following improvements to the bank’s security center and its mobile and online banking features, customers will be able to monitor which companies have permission to view their information. Data are shared between the bank and data aggregators through a shared API, and data aggregators use unique tokens to protect usernames and passwords. To use the service, customers log into the data aggregation service they use and add or verify their Bank of America accounts. They will be connected to the BofA site to agree to share data and then customers will be able to start using their data aggregation services. The service is expected to be ready this fall, according to BofA.
“We value customer choice and want customers to securely access their information when and where they want,” said Michelle Moore, BofA head of digital banking. “For customers who use data aggregation services, we are making it more transparent and simpler for them to see who they’re sharing data with and to turn it off when they want.”
The service is a key part of BofA’s API strategy to enable the bank to serve its customers in “an expanding financial ecosystem,” according to Aditya Bhasin, BofA head of consumer and wealth management technology.
Spain-based financial services group BBVA announced last week it is allowing access to customer data, with their permission, so that third-parties could offer financial services, according to Financial Times. Companies will be able to use customers’ transaction data to offer “lifestyle services.” For example, startup banks in the U.K., such as Monzo and Starling, offer money management services.