The Clearing House streamlines its data-sharing risk assessment service
As real-time payments are starting to build momentum and gaining attraction amongst businesses, financial institutions and other players in the field have geared up to protect and safeguard it.
In such, The Clearing House (TCH) has launched a new service which will make it more efficient for financial apps and data aggregators to provide assessment information to Financial Institutions (FI), the press release noted.
Under The Streamlined Data Sharing Risk Assessment which is provided by TruSight and KY3P by IHS Markit incorporates work development through TCH’s connected Banking initiative which would standardize and streamline risk evaluations of data aggregators and financial apps.
In the previous system, whenever FI wanted to establish or renew the connection with financial apps or aggregators, it would have to separately send and receive the information relevant to its risk assessment which would slow down the process and be inefficient. Now in the new system, a centralized service would operate and streamline the process for FI, financial apps and the data aggregators.
The Streamlined Data Sharing Risk Assessment was piloted by TCH in participation by Finicity, Plaid, Bank of America, JPMorgan Chase, PNC Bank, TD Bank, Truist, U.S. Bank, and Wells Fargo, the press note said.
“This centralized 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,” said Ben Isaacson, Senior Vice President and Connected Banking Product Executive at The Clearing House. “It aims to help financial institutions of all sizes meet their risk requirements more efficiently and cost effectively.”
Recently, Wells River Savings Bank announced plans to bring real-time capabilities to its customers through the RTP network which is developed by The Clearing House.