Charles Schwab announced agreements with Intuit (maker of QuickBooks, TurboTax and Mint), eMoney Advisor (a financial planning software provider), and Envestnet | Yodlee (a leading financial data aggregation and analytics platform), to use Schwab’s “API” (application programming interface) connections.
“These new partnerships underscore the continuing need to ensure our clients’ valuable financial data is protected”
The use of APIs are a best practice in the industry and take a token-based approach which enables clients to authorize third parties to download requested account information on their behalf in an encrypted form, without storing their usernames and passwords. Through Schwab’s API connection, Intuit, eMoney, and Envestnet | Yodlee will continue to have client-authorized access to account information in a protected environment specifically designed for such information sharing. In turn, clients will have greater control over and better transparency into what data they share and with whom they share their data.
“These new partnerships underscore the continuing need to ensure our clients’ valuable financial data is protected,” said Linda Albornoz, Senior Vice President of Digital Cross-Enterprise Platforms at Charles Schwab. “Not only are we granting our clients increased control and visibility into how their data is being used but also providing them greater connectivity across their financial accounts, so they can continue using the apps they enjoy.”
Albornoz added, “Third-party financial technology companies are an important part of our ecosystem and provide a valuable service but our responsibility and obligation to provide clients with account-data access controls for managing their personal and financial information has never been more essential. We believe it’s important for our industry to take steps to ensure clients are provided with clear disclosures and transparency into how their information may be used by third parties.”