US-based financial services provider Regions Bank has selected Axway’s Amplify Open Banking solution to enhance its future open banking capabilities.
The US lender will use Amplify Open Banking to enhance the open banking capabilities of its Consumer Banking, Corporate Banking and Wealth Management businesses.
Axway created the Amplify Open Banking solution to boost digital transformation by securely opening data and processes to several third-party applications.
Amplify Open Banking includes APIs built to match the standards of the Financial Data Exchange (FDX), a non-profit offering royalty-free FDX API for financial data sharing.
It will provide access to an enhanced and modern developer marketplace for API planning and adoption, which allows financial institutions to connect APIs together for customer use.
Also, the solution’s integrated consent management allows customers to approve the collection, use, and sharing of their financial data and can unsubscribe at any time.
Axway financial services and open banking vice president Tom Hogan said: “We are excited to extend our work with Regions to help provide secure, standardised access to data.
“This allows their customers to benefit more from the expanding ecosystem of next-generation fintechs and third-party data providers.”
Open banking allows customers to securely share their financial data with financial institutions and third-party service providers, for financial management and budgeting.
Currently, Regions Bank customers can authorise third-party platforms to obtain their financial data through a credential-based process known as “screen scraping.”
In the future, Amplify Open Banking will support Regions’ digital banking capabilities to further enhance security with an application programming interface (API) solution.
With the Amplify solution, Regions’ consumer banking and wealth management clients can continue to share their financial data with third parties.
Instead of third-party platforms saving credentials, Regions will require customer consent for each transaction, preventing third-party systems from saving sensitive information.
The new approach ensures a secure connection between the customer’s authorised Regions account and their choice of third-party platform.
Regions will monitor third-party activities and allow customers to review or deactivate data sharing at any time.
Also, the bank allows its corporate banking clients to use Amplify’s Marketplace feature for easy, and secure API connections to their financial data.
Once Amplify is launched in the coming years, customers will receive a one-time prompt from third-party platforms to re-enter account details.
Furthermore, Regions will provide educational resources through Regions Online Banking, the Regions Mobile App, and other channels to prepare customers for this transition.
Regions Bank emerging and digital payments group manager Tim Mills said: “This new solution will help capture customer consent, remove the need for credential sharing to third parties, and provide another layer of security to protect customer data.
“Open banking is the future, and we are pleased to work with Axway to make banking easy for customers who turn to Regions time and again for their banking needs.”
