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PNC Financial (PNC) Teams Up With Akoya for Financial Data Security

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The PNC Financial Services Group, Inc.’s PNC banking subsidiary, PNC Bank, recently announced its integration with the Akoya Data Access Network. This alliance will enable more than nine million PNC consumers to safely share their financial data with financial technology companies (Fintechs) and data aggregators with amplified security, courtesy the Application Programming Interface (API)-based network.

The API-based system is anticipated to bolster the data security for customers who want to use third-party financial apps. Through the integration, customers will no longer need to share their respective banking login ID or password in order to access the third-party financial services. PNC customers will also be able to easily oversee and restrict data access to the Fintechs and data aggregators connected via the Akoya Data Access Network.

Akoya was created to transform financial services into API-based data access. The data access augments data-sharing authenticity and reduces cybersecurity, privacy and financial risks as compared to the credential-based data aggregation (commonly known as screen scraping). All the accessed and shared data via the Akoya Data Access Network is never copied or stored by Akoya, thereby further shielding consumer privacy. It is accessed through the Financial Data Exchange API standard.

Natalie Talpas, senior vice president, group manager, Digital at PNC, said, "By teaming up with Akoya, we are fulfilling our vision of wide-scale API adoption for financial data aggregation and giving our customers increased protection, transparency and control over their financial information.”

PNC chairman, president and CEO, William S. Demchak, also remarked, "Many customers assume it is safe to provide their sensitive information to the financial app of their choice. However, we know this information has been used for unauthorized access to customer accounts. That is why we have been taking interim steps to provide accessibility and security – and with today's announcement, we are providing a permanent solution for striking the right balance between customer choice and data protection."

The company’s focus to expand the middle-market lending franchise, and bolster digital products and service offerings will likely drive PNC’s bottom-line growth. Given the strong balance-sheet position, the execution of inorganic growth strategies to diversify revenue sources is likely to support its performance.

Shares of this Zacks Rank #3 (Hold) company have appreciated 10.9% over the past six months, while its industry has gained 8.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Similar Steps by Other Banks

A growing number of financial service organizations, including banks, are advancing their digital infrastructure strategies and focusing on offering frictionless digital services for their customers and clients.

At the Barclays investor conference, Capital One’s COF CEO Richard Fairbank said that the company will beta test a buy-now pay-later service later this year. He further stated that the product will be tested with some of the existing customers at “select set of merchants” and it won’t be linked to the company’s private-label credit-card business.

Recently, New York Community Bancorp, Inc.’s NYCB subsidiary, New York Community Bank, built a cutting-edge digital payment process via the development of a blockchain-induced digital marker — USD Forward — which is the first to be used by a bank on the Provenance Blockchain. This will aid Figure Technologies, Inc. to operate real-time secondary trading in digital shares of its stock by using its alternative trading system.

Northern Trust NTRS has launched an artificial intelligence-powered tool to derive unstructured investment information from alternative asset documents, in a bid to further digitize its alternative asset servicing business. This underpins the company’s efforts to enhance its asset owner clients’ experience as well as abate operational risks in the alternative asset servicing business.


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