RBC opens data access to third-party apps with Yodlee, Plaid tie-ups

Canadian FI, RBC, has teamed up with data aggregation and analytics platform Yodlee to enable data sharing between the bank’s clients and the latter’s third-party applications.

The partnership will allow RBC clients to share their financial data with more than 1,500 third-party applications powered by the Evestnet-owned Yodlee platform via an API.

Following the switch to a direct API connection, RBC clients will have the option to share their financial information without disclosing their RBC credentials.

“Our clients want their primary banking relationship to be anchored with RBC, but they also want to be empowered to access, use and share their financial data with other applications,” said Peter Tilton, chief digital officer, personal & commercial banking at RBC.

“As we deliver this added client value, it is more important than ever that we do so in a safe and secure manner. This agreement with Yodlee does just that. Not only do RBC clients gain secure access to the broad suite of apps and services Yodlee has to offer, but they also now have more confidence and control over the data that is shared.”

Yodlee enables banking customers to link their accounts on devices quickly and gives them access to their bank, credit card, investment, loans, rewards, and financial account data.

In addition to Yodlee, the Canadian bank also signed a similar data access agreement with Plaid, establishing a connection with more than 6,000 apps in the Plaid network.

The two partnerships highlight the bank’s focus on improving its digital services and bolstering security amid the increasing adoption of open finance and data sharing.

The elimination of RBC credential input requirements when sharing data with the third-party applications in the Yodlee and Plaid networks follows RBC’s recent fraud prevention monthly poll where 48% of respondents noticed increased attempts from fraudsters.

According to Canadian Anti-Fraud Centre, $379 million was reported in losses from fraud, up from the $160 million in 2020.

Open finance provides opportunity for banks working with security and data aggregators

RBC’s partnerships for improved security underscore the growing focus on protection against potential attacks as open financing becomes the norm.

In Poland, Bank Millennium recently partnered with UK real identity platform provider Onfido for automated identity verification during new customer onboarding.

In February, UK bank TSB also selected Onfido to use the latter’s identity verification technology in its customer onboarding journey.

Beyond security, RBC’s service agreements with the two data aggregators also highlight the opportunity for banks to improve add services, increase user touchpoints and bring additional users into their ecosystems through partner integrations.

Earlier this month, Dutch payment service provider, Mollie, announced its integration with open finance network Plaid’s API to provide a more secure and easier bank verification experience for merchants.

German finance management platform Airbank benefited from a Series A funding round, raising $20 million from a consortium of investors led by Molten Ventures.

In April, French financial data aggregator, Budget Insight, raised $35m in funding from growth equity firm PSG equity to scale up its business across Europe and the US.

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