Finicity Integration for FinTech Development

What is Finicity?

Finicity is an American company headquartered in Utah that was founded more than 20 years ago as a personal finance management agency that helped people save money and improve their financial health. Later on, it started growing and connecting with banks and other financial institutions across the U.S. to support real-time, lightning-fast payments. By 2015, it had connected more than 10,000 banks and now covers 95% of all financial institutions in the United States. By acquiring advanced, powerful technologies, Finicity managed to grow into one of the largest Northern American data aggregation services, having hands-on encryption, AI, and ML to provide the data required to fuel up FinTech services and apps bringing benefit to their customers.

What is Finicity Open Banking Platform?

It’s impossible nowadays for any FinTech company or startup to increase its efficiency and gain market weight without an improved customer experience. One of the ways to do this is to unleash the power of data for individuals, the data generated while paying bills, making purchases, budgeting, saving for college, etc. FinTech companies, in turn, armed with the right data from banks (via data aggregators like Finicity), could propose best-in-class financial solutions to improve the financial health of end consumers and help them make smart financial decisions.

Finicity Open Banking Platform Core Principles

Finicity Connect grants authorization and provides the access to the Finicity open banking platform. It downloads all relevant data from users’ accounts and offers powerful analytics. Through Finicity Connect, customers view their account information, apply for loans, request reports on financial transactions, and send electronic payments. Let’s dig into what makes Finicity open banking platform and Finicity Connect safe and powerful.

✅ Security

Finicity financial services apply powerful technologies to protect user data. They heavily use encryption and follow strict security processes similar to those used by banks and other financial institutions. All data is stored in AES256bit encryption format, in addition to their backend encryption systems. Machine learning is used to detect and block suspicious system activity. Finicity open banking platform is SOC2, Type 2 certified. When third-party providers connect to the Finicity platform, tokenization integration occurs. It means that user credentials are converted into a secure “‘token”. This helps protect customers data because tokenization does not allow third-party vendors to store passwords and usernames.

✅ Reliability

The best way to integrate fintech solutions with Finicity open banking platform is via its API to create a robust connection — as opposed to “screen-scraping” where any change to the customer’s digital interface could result in a disconnect. Integrating services via API provides a direct connection where sensitive customer data is transferred accurately, quickly, and, most importantly, securely.

Use Cases of Finicity Integration

Finicity open banking platform unleashes the power of new technologies to provide end-users with high-quality services in the following fintech areas:

1. Personal Finance Management

Finicity API provides a real-time view of your categorized financial data. Up to 2 years of account history is provided in detailed charts and other visual representations. Finicity statement is a digital statement aggregation tool that is FCRA compliant and meets the requirements for credit decisions.

2. Loan Analysis

Finicity provides accurate financial data to lending institutions at lightning speed when analyzing customers’ income history for the last 2 years. Finicity applies data intelligence and offers a variety of identified income streams, including PayPal and perhaps cryptocurrencies in the future, as Finicity CEO Steve Smith claimed in his interview with Insider Intelligence. In addition, Finicity also offers employment verification in seconds.

3. Expense Reporting

In addition to debit, credit, and balance analytics, Finicity also enables cash flow analyses through powerful technology. Better insight into customer spending takes into account all income and expense streams, increasing the chances of a better option for auto, mortgage, SMB, and personal loans.

4. Banking

Finicity’s innovative verification tool provides instant account balance and account holder information. It greatly improves bank payments and AHS transfers, P2P money transfers and account opening, government disbursements, and funding source verification for investment and wallet accounts.

To Sum Up

Integration with Finicity online banking platform helps organizations, individuals, and corporate customers to make better financial decisions. Finicity open banking platform prioritizes customers by putting them in control of their financial data and advocating for financial inclusion and financial literacy. With the right software development company on your side, the integration with Finicity API is smooth and effortless.

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Itexus is a software development company which specializes in the development of Fintech and Healthcare software solutions.

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Itexus Team

Itexus Team

Itexus is a software development company which specializes in the development of Fintech and Healthcare software solutions.