Toronto-Dominion Bank TD recently signed a data-access agreement with U.S.-based data-driven financial services firm Finicity. This agreement denotes the protocols to be followed by Finicity when a customer of Toronto-Dominion puts in a request to use the financial services provided by the former.
Toronto-Dominion will use the Application Programming Interfaces (API) technology to transfer customers’ financial data to Finicity. An API-based system is expected to bolster data security for customers who want to use third-party financial apps. This will consequently end the need for customers to share their respective banking login ID or password in order to access third-party financial services.
Rizwan Khalfan, Toronto-Dominion’s chief digital and payments officer, said, "The significant surge we have seen in the adoption of our own digital products and services has accelerated our work to leverage a market-developed technology solution to help increase the comfort level of customers looking to access digital services that are outside their bank."
Finicity chief executive officer Steve Smith noted "We are committed to delivering superior data access, quality and security through the Finicity Open Banking platform, transforming the way consumers interact with and benefit from their own financial data."
Toronto-Dominion has been enhancing its API-based capabilities to make use of the data stored with financial institutions. Recently, the firm invested in Akoya, a company that will operate an API-based network for sharing financial data. Earlier this month, the bank also entered into a multi-year agreement with Global Payments GPN, a payments technology company, in a bid to provide processing and support services to customers.
Toronto-Dominion is a founding member of Financial Data Exchange (FDX), a U.S.-based industry consortium recently launched in Canada. FDX seeks to promote solutions that protect consumer data and supports the use of API-based technology.
Shares of this Zacks Rank #3 (Hold) company have depreciated 18% over the past year, while its industry has declined 26.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Banks have been fortifying their digital capabilities as the demand for the same has been rising amid the coronavirus pandemic. Global banks like HSBC Holdings HSBC, JPMorgan JPM and Bank of America are investing heavily in technology upgrades to enhance digital experience for customers.
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