In a significant advancement for the financial technology landscape, Invela has officially launched a transformative network to bolster consumer protection and foster innovation within the open finance ecosystem. The Invela Network, developed in collaboration with industry-leading specialist partners, promises to revolutionize how financial institutions manage third-party risk, providing a much-needed layer of trust, scalability, and efficiency.
Open finance has reshaped the financial services industry
The Consumer Financial Protection Bureau (CFPB) reports that over 100 million Americans have given permission to access their financial data from their bank accounts to a range of data recipients such as Venmo and Experian. With the recent introduction of the CFPB’s 1033 Rule, and similar upcoming regulatory changes in Canada, managing the possible associated risks has never been more critical. For many data providers, relying on traditional data aggregators for risk management is no longer sufficient.
Invela CEO Steve Smith expressed his excitement: “Today, we unveiled the groundbreaking Invela Network. This innovation enhances risk mitigation and fosters greater trust within the open finance ecosystem, empowering all stakeholders with the confidence to harness the full potential of open finance.”
Boosting scalable operational efficiency and resilience
The Invela Accreditation service is a primary component of the Invela Network. By delivering standardized, streamlined accreditations for third-party providers, we empower banks and credit unions to make confident, evidence-based account access decisions – at scale. And we enable aggregators and third-party providers to complete a single, standardized accreditation to access many banks and credit unions, reducing both friction and cost.
Following the accreditation process, Invela delivers dynamic, real-time risk indicator scoring and monitoring of account-accessing organizations – purpose built to safeguard the open finance ecosystem. Transparent, actionable insights empower banks, credit unions, aggregators and third-party providers to make informed account access decisions, and maintain open finance ecosystem integrity.
In summary
As the open finance movement continues to gain momentum, innovations like the Invela Network are essential for ensuring the resilience of the ecosystem. By addressing the pressing need for efficient accreditation, dynamic risk scoring and monitoring, and insurance-backed warranty, the Invela Network is setting the stage for a more secure and innovative future in financial services.
The Invela Network is not just a step forward for consumer protection; it represents a paradigm shift in how banks and credit unions work with aggregators and fintechs. With this new Invela Network, the potential for enhanced consumer trust, operational efficiency, and resilient collaboration is within reach. As more stakeholders embrace these advancements, the future of open finance is brighter than ever.
