Data sharing

The U.S. banking system risks being left behind by the European Union and the United Kingdom when it comes to open banking.

Moving to an open banking system comes with both costs and benefits that each bank will need to weigh before diving in.

Banks in the U.S. should take note of these requirements before opening their systems to third-party developers.

Visa's deal to acquire the data aggregator Plaid is likely to have ripple effects throughout the industry, including reduced tension between banks and fintechs over data sharing.

Financial institutions need to be aware of the platform model, strategic and reputational hazards that come with granting access to their networks.

Silicon Valley giants are better innovators, software developers and data managers, but banks' inherent advantages shouldn't be discounted, says Sonny Singh, a senior vice president at Oracle.

PNC, Plaid and Venmo have been blamestorming over customer data-sharing issues of access, security and consent.

Open banking transactions are not initiated by a consumer but are coming from another financial services company. This could make some fraud detection models in place today obsolete.

Financial regulators’ statement cautiously encouraging lenders to go beyond traditional underwriting in their lending decisions is a big step forward for the use of alternative data and artificial intelligence, bankers say.

Radius Bank is letting consumers open accounts through NerdWallet as part of its banking-as-a-service offerings to reach customers through third parties.