Envestnet, Inc.’s ENV Envestnet | Yodlee yesterday announced that it has reached a financial data-access agreement with Charles Schwab SCHW.
Per the agreement, Envestnet will allow Charles Schwab clients to connect to the Envestnet | Yodlee Platform and share their financial data with more than 1,200 third-party financial service providers powered by the platform.
Charles Schwab’s API ensures the safety and privacy of client data by making third-party access based on client consent and tokenization, and eliminating the need for usernames and passwords. Further, this mechanism provides clients visibility and transparency into the linked accounts allowing them to view what type of data is accessed by which third party.
Charles Schwab is the third major U.S. financial institution after Citigroup’s C Citibank and JP Morgan Chase JPM that Yodlee has partnered with to enhance consumer access to financial data. Charles Schwab has made similar API agreements with Intuit and eMoney Advisor as well.
Such agreements improve customers’ experience with enhanced security and site reliability, thereby, positively influencing their financial decision making.
According to Stuart DePina, president of Envestnet, "API-based connectivity in the United States has gained significant momentum and data-access agreements, like the one we've signed with Charles Schwab, are critical to enabling the financial services ecosystem."
Both Envestnet and Charles Schwab currently carry a Zacks Rank of 4 (Sell). Shares of the companies have declined a respective 22.9% and 27.2%, year to date.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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