Key players in the US financial services space including Bank of America, JPMorgan, PNC Bank, TD Bank, Truist, U.S. Bank, Wells Fargo, Finicity and Plaid have piloted a new service to support data sharing risk assessment.

The Streamlined Data Sharing Risk Assessment service is being provided by TruSight and KY3P by IHS Markit and developed through The Clearing House’s Connected Banking initiative.

A financial institution separately requests and obtains risk assessment-related data every time it establishes or renews a connection with a financial app or an aggregator. This can slacken the process of executing agreements with data exchange partners.

With the new centralised service, the process can be streamlined for financial institutions, financial apps, data aggregators and others, noted The Clearing House.

The Clearing House’s Connected Banking initiative determined the data required for submission by apps and aggregators for due diligence.

The initiative aims to transmit bank-held financial information through APIs to fintechs to help address security concerns and also enhance customers’ visibility of the information.

The Clearing House senior vice president and Connected Banking Product executive Ben Isaacson said: “This centralised approach can reduce the need for financial apps and data aggregators to provide the same risk information again and again as they engage in data exchange agreements with FIs.

“It aims to help financial institutions of all sizes meet their risk requirements more efficiently and cost effectively.”

TruSight carried out pilot evaluations to simplify information collected from the participating data aggregators and offer it over a secure platform to each of the participating financial institutions.

The streamlined process is said to accumulate a large portion of the data needed by the financial institutions, lowering the need for follow-ups.

Finicity data access partnerships senior vice president Ryan Christiansen said: “Open banking is transforming the way consumers and organisations are able to share and benefit from their financial data.

“As an industry, we have a responsibility of supporting these efforts with the highest levels of security. This pilot – and the programmes that will follow it – will help deliver that in a streamlined and simplified process.”