Today Charles Schwab announced agreements with 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 “API” (application programming interface) connections.
The use of APIs are a best practice in the industry and take 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.
“These new partnerships underscore the continuing need to ensure our clients’ valuable financial data is protected,” said Linda Albornoz, Senior Vice President of Digital Cross-Enterprise Platforms at Charles Schwab. “Not only are we granting our clients increased control and visibility into how their data is being used but also providing them greater connectivity across their financial accounts, so they can continue using the apps they enjoy.”
Albornoz added, “Third-party financial technology companies are an important part of our ecosystem and provide a valuable service but our responsibility and obligation to provide clients with account-data access controls for managing their personal and financial information has never been more essential. We believe it’s important for our industry to take steps to ensure clients are provided with clear disclosures and transparency into how their information may be used by third parties.”
With the agreements announced today, Charles Schwab is enhancing 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.
Here’s how the API works to protect Charles Schwab clients:
- Protection – 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.
- Data Privacy–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.
- Transparency and Control – 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.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with more than 360 offices and 12.7 million active brokerage accounts, 1.7 million corporate retirement plan participants, 1.4 million banking accounts, and $3.50 trillion in client assets as of March 31, 2020. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at www.schwab.com and www.aboutschwab.com.
Intuit’s mission is to Power Prosperity Around the World. We are a global financial platform company with products including TurboTax, QuickBooks, Mint and Turbo, designed to empower consumers, self-employed and small businesses to improve their financial lives. Our platform and products help customers get more money with the least amount of work, while giving them complete confidence in their actions and decisions. Our innovative ecosystem of financial management solutions serves approximately 50 million customers worldwide. Please visit us for the latest news and in-depth information about Intuit and its brands and find us on social.
eMoney Advisor, LLC (“eMoney”) provides technology solutions and services that help people talk about money. Rooted in comprehensive financial planning, eMoney’s solutions strengthen client relationships, streamline business operations, enhance business development and drive overall growth. More than 70,000 financial professionals across firms of all sizes use the eMoney platform to serve more than 4 million households throughout the U.S. For more information, please visit: www.emoneyadvisor.com.
Envestnet, Inc. (NYSE: ENV) is a leading provider of intelligent systems for wealth management and financial wellness. Envestnet’s unified technology empowers enterprises and advisors to more fully understand their clients and deliver actionable intelligence that drives better outcomes and improves lives.
Envestnet Wealth Solutions enables enterprises and advisors to better manage client outcomes and strengthen their practices through its leading Wealth Management Operating System and advanced portfolio solutions. Envestnet | Tamarac provides portfolio management, reporting, trading, rebalancing and client portal solutions for registered investment advisors (“RIAs”). Envestnet | MoneyGuide provides goals-based financial planning applications. Envestnet Data & Analytics enables innovation and insights through its Envestnet | Yodlee data aggregation platform.
More than 100,000 advisors and more than 4,700 companies including: 16 of the 20 largest U.S. banks, 43 of the 50 largest wealth management and brokerage firms, over 500 of the largest RIAs and hundreds of internet services companies leverage Envestnet technology and services. Envestnet solutions enhance knowledge of the client, accelerate client on-boarding, improve client digital experiences and help drive better outcomes for enterprises, advisors and their clients.
For more information on Envestnet, please visit www.envestnet.com and follow us on Twitter @ENVintel.
© 2020 Charles Schwab & Co., Inc. Member SIPC