Charles Schwab signs API agreements with Intuit, eMoney Advisor, Envestnet | Yodlee
Through Schwab’s API connection, the firms will continue to have client-authorized access to account information in a protected environment.
Charles Schwab today announces agreements with several third-party financial technology companies – Intuit (maker of QuickBooks, TurboTax and Mint), eMoney Advisor (a financial planning software provider), and Envestnet | Yodlee (a leading financial data aggregation and analytics platform), to use Schwab’s application programming interface (API) connections.
The use of APIs represents a best practice in the industry and takes a token-based approach which enables clients to authorize third parties to download requested account information on their behalf in an encrypted form, without storing their usernames and passwords. Through Schwab’s API connection, Intuit, eMoney, and Envestnet | Yodlee will continue to have client-authorized access to account information in a protected environment specifically designed for such information sharing. In turn, clients will have greater control over and better transparency into what data they share and with whom they share their data.
The API issues a token to third parties for client data to ensure client account credentials are safe. Available multi-factor authentication provides an added layer of user identification.
Further, through the Schwab API, clients can choose to grant access to specific accounts and specific third parties to ensure the right data is selected. Consent to allow access to data through explicit disclosures is logged and archived.
Clients have higher visibility and transparency into linked accounts, including which third parties are accessing their data and the type of data through the Schwab Security Center. Clients can easily view and change access at any time.
Thanks to the agreements announced today, Charles Schwab is boosting its ability to actively manage and provide an alternative to the process of “screen scraping”, by which third-parties access valuable client data by using the clients’ own log-in credentials. Through its API development and the migration of third-party financial technology companies to its API network, Schwab provides a more secure, client-controlled authentication process, and moves one step closer to its vision of completely eliminating screen-scraping of Schwab sites in the future.