Wells Fargo has signed a data exchange agreement with financial data aggregation and analytics platform Envestnet, the parent of software firm Yodlee.

Bank customers will now be able to share their financial data with over 1,400 third-party financial applications on the Envestnet Yodlee Financial Data Aggregation platform.

The Wall Street giant has forged an API-based data exchange agreement, which secures the process of sharing financial data with third-party apps.

As part of the deal, the API used will utilise a tokenised “handshake” between the servers of both companies, through which the data will be shared.

This API integration will enable the bank customers to choose the financial data they intend to share, while keeping their credentials private.

Envestnet Yodlee, on the other hand, will access Wells Fargo’s data aggregation API on the bank’s Gateway Channel.

This open API channel allows commercial and corporate customers and third parties to integrate consented financial information into their own digital setting.

Envestnet Yodlee SVP of data access and management Chad Wiechers said: “Our agreement with Wells Fargo — in conjunction with our recent data sharing agreements with other major US financial institutions — enables even more consumer choice, protection, and insight, ultimately giving consumers more control and an improved overall financial wellbeing — something that is vital during a particularly uncertain economic landscape.”

Through this partnership, Wells Fargo has decided to transition 99% of its third-party app screen-scraping to API-based data exchange.

Going forward, the bank’s customers will be empowered with Wells Fargo’s Control Tower digital experience.

This will provide customers with more control over their financial data while using the financial apps on Envestnet’s platform.

Control Tower is available in the Wells Fargo Mobile Banking app and online banking.

Customers can use it to turn on and off data sharing with Envestnet-supported apps.

Moreover, it allows customers to choose whether to share data for all Wells Fargo accounts or only selected accounts.

It provides customers with a single view of their digital finance position to help them manage their data better.

Wells Fargo’s SVP of strategy, digital and innovation group Ben Soccorsy said: “We are thrilled to come to this agreement with Envestnet | Yodlee and take this big step toward achieving complete API-based financial data sharing for our consumer and small business customers who want to manage their finances on the platform of their choice.”

Wells Fargo will roll out the data sharing service for select customers of Envestnet this year.

Previously, Wells signed data sharing pacts with Plaid, Expensify and PointServe, Intuit, as well as Finicity.