Wells Fargo & Company (WFC - Free Report) recently signed a data exchange agreement with Envestnet’s (ENV - Free Report) data aggregation subsidiary Yodlee. This will allow customers to share their account information with fintech apps connected to Envestnet Yodlee. With the move, Wells Fargo aims to better compete with the growing fintech companies.
Clients will get a more secure passage to share their financial data with the more than 1,400 third-party financial applications on the Envestnet | Yodlee Financial Data Aggregation Platform.
The application programming interface used in the agreement will be a more secure, tokenized "handshake" between the companies’ servers through which customers’ financial data will be shared. Notably, clients will be able to keep their Wells Fargo user credentials hidden while sharing data.
Wells Fargo plans to launch the platform to select customers this year. Also, the enrollment process is designed to be easy and work seamlessly within the user experiences of Yodlee-supported apps.
Yodlee will access Wells Fargo’s data aggregation API on Wells Fargo’s Gateway Channel. It is the bank’s open API channel that allows commercial and corporate customers and third parties to integrate customer-permissioned financial information into their own digital environments.
"We are thrilled to come to this agreement with Envestnet | Yodlee and take this big step toward achieving complete API-based financial data sharing for our consumer and small business customers who want to manage their finances on the platform of their choice," said Ben Soccorsy, senior vice president in Wells Fargo’s strategy, digital and innovation group.
Chad A. Wiechers, senior vice president of data access & management at Envestnet | Yodlee said, "API-based connectivity in the United States is leading to an increasingly connected financial ecosystem, spearheaded by the partnerships like the one we now have with Wells Fargo."
Following the fake accounts scandal, Wells Fargo has undertaken several restructuring measures to focus on its core operations, improve efficiency and strengthen the balance sheet. However, with the ongoing review process of business practices and a limit on asset growth, Wells Fargo’s top line might remain under pressure.
The stock has lost 24.5% in the past six months compared with 5.1% decline for the industry.
Currently, Wells Fargo carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Of late, several companies have been making efforts to include artificial intelligence in their systems. JPMorgan (JPM - Free Report) and BlackRock (BLK - Free Report) have both joined forces with a technology startup Saphyre in order to automate the opening of custody accounts. The companies seek to digitize the pre-trade space.
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