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U.S. Open Banking

Open Banking in the U.S.

Open banking, also known as open finance, allows consumers the right to access and share their financial data held by their financial institutions. Consumers can exercise this right when they select advisors and the applications to help them improve their financial well-being. In open banking, the financial institutions that hold the consumers’ data make it available and protect it while the data is in their custody.

Open banking is a shift from using login credentials via the consumer direct web and mobile sites to more secure access to consumers’ financial data via direct authentication at the financial institution via APIs. In the United States, market forces are the primary driver for this transition. Regulatory mandates are the business drivers in Europe, the United Kingdom, and Australia.

The U.S. financial industry is on the cusp of creating a next-generation open-data ecosystem for financial services where aggregators, incumbent financial institutions, and new market entrants work together to provide consumers with enhanced digital financial services.

As data intermediaries between banks, fintechs, and consumers, aggregators such as Morningstar® ByAllAccounts® will continue to play a critical role providing connections and movement of data throughout the financial ecosystem.

Access the Highest Quality Wealth Management Data in the U.S. Open-Banking Ecosystem

Morningstar ByAllAccounts is your essential partner for providing the highest-quality financial data required to power your investment-focused use cases via our open banking API connections.

As an active participant in the evolving U.S. open banking ecosystem, ByAllAccounts is dedicated to empowering the relationship between an investor and their financial advisor. The platform gives you a holistic view of your investor’s entire financial picture in an even more dependable, safe, and compliant manner. At the same time, investors will maintain granular control over their financial data throughout the entire process.

4 Reasons Why Open Banking Matters

Open banking is important to investors, financial advisors, and the enterprises that serve them because

Advisors need a 360-degree view of their clients' finances. This allows the advisor to provide more actionable, compliant, and trustworthy financial advice to their investors. More direct data connections offer greater reliability and mitigate risk.

ByAllAccounts is adding more API connections via structured-data access agreements; 70% of the data sourced will be accessed via data feeds by the end of 2022.

ByAllAccounts provides reliable access to high quality investment data.
In an environment of fragmented regulation and standards, open banking reduces risk through developing standards, stakeholder collaboration, and a shared ecosystem of liability. Advisors will no longer need to store client credentials themselves or with their aggregator, further reducing risk.

With ByAllAccounts, investors have greater transparency and more granular control over the use of their data.
Trust is crucial between an investor and their financial advisor. For over 20 years, Morningstar ByAllAccounts has been an advocate for investors and their advisors. We ensure that the proper data elements required for investment use cases are made available via open-banking connections. ByAllAccounts is committed to supporting the open banking ecosystem and is an active member of both FDATA and FDX.

Consider us your essential partner for investment use cases.
Integrity is essential when advising clients on their investments. ByAllAccounts maintains comprehensive security; we employ encryption when information is both at rest and in transit and follow strict compliance and privacy laws. We operate solely as a service provider to our clients, many of whom are SEC- and Finra-regulated firms, and we follow the highest standards of third-party risk management in this regulated industry.

We hold high standards for privacy and security.

Open Banking Resources

Open Banking for Wealth Management in the United States

Today’s open banking direct data connections provide reliable and secure access to the critical data necessary to provide personalized advice and maximize positive client outcomes plus provide enhanced back-office efficiencies.

Download this whitepaper to learn:

• What is open banking?

• How is open banking is developing in the United States?

• What makes a good open banking partner in wealth management?

• Why is Morningstar ByAllAccounts your essential partner for open banking?

ByAllAccounts Wealth Management Whitepaper

See how high-quality aggregated data can power great financial advice.