The Open Banking Agency Model: Putting “Open” in Open Banking

As Open Banking evolves in the United Kingdom, Envestnet | Yodlee continues to innovate to ensure our customers have what they need to succeed in the complicated regulatory environment.

A good example of this innovation is our new Agency Model capability, which enables customers to operate using Envestnet | Yodlee’s AISP authorisation to satisfy the Financial Conduct Authority (FCA) regulatory requirements. By taking care of this licensing burden for our clients, as well as navigating the evolving landscape of other regulations and compliance requirements for them, fintechs and financial service providers not only get to market faster, but are also able to build open finance solutions that leverage our enriched aggregated data, alongside hard-to-access pension and investment data.

Registered Agency Governance and Onboarding

Before customers can operate under our license and safely connect to the U.K. Open Banking ecosystem, we assess, validate and vet them using our Enhanced Client Governance Program.

As a global leader and pioneer in customer-permissioned financial data sharing, this governance program, developed specifically to address asymmetries in developing regulatory frameworks for open finance that disadvantage new market entrants, provides an even higher level of assurance of our clients’ conduct, risk posture and consumer protection capabilities.

Once we’ve determined a customer meets our governance requirements for Register Agents, the rest of our onboarding process is simple and straightforward. In most cases, they can expect to begin accessing relevant data within days thanks to our developer-friendly environment, with quickstart resources, data samples, etc., and our ready-made open banking APIs.

Benefits of the Registered Agency Model

Partnering with Envestnet | Yodlee and using the registered agency model offers benefits beyond just getting to market faster and safer for all types of financial service providers looking to expand into the UK and Europe, especially FinTechs who often lack the scale or resources because they’re just starting out. These benefits include:

Offering more choices

UK consumers increasingly regard their personal data as an asset they can use to their advantage in data exchanges with organisations, especially among younger consumers.* Our customers can provide them with more choices and innovation – and build trust and brand preference in the process – by offering more open banking-powered applications and services.

• Handling more use cases

Our customers can move beyond payment accounts to create solutions for popular client use cases they’d otherwise be locked out of, including price comparisons, lending decisions and credit assessments, account analysis, account aggregation and more.

Building open finance solutions

While not operating under our AISP license, our wider Open Finance API enables customers to access the pension and investment data they need to deliver true open finance solutions that can help consumers address complex financial matters such as wealth management.

Why Partner with Envestnet | Yodlee in the UK

While other providers offer a similar agency model in the UK, none offer the resources or the experience to help financial service providers and FinTechs invest, scale and grow for the long term like Envestnet | Yodlee. We provide a trusted and secure ecosystem that’s enabled for open banking with comprehensive and highly accurate financial data, and adherence to security and privacy best practices. We’re deeply committed to evolving, open banking systems around the globe to help our customers deliver the financial wellness solutions that provide better financial guidance to their clients.