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 banking 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 Banking 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 banking ecosystem, empowering all stakeholders with the confidence to harness the full potential of open banking.”
Accreditation and Risk Score: Boosting operational efficiency, security, and scalability.
The Invela Accreditation service is a primary component of the Invela Network. It allows for data providers to be certified to standards and operating service-level agreements. It also allows for data recipients to be accredited and certified to the use of proper technical and security standards, as well as appropriate operations leading to safe and secure data access. A centralized accreditation process saves time and resources. This streamlined approach enables data recipients to focus on getting to market instead of having to seek accreditation with every data provider.
Complementing the accreditation process, the Invela Network provides a Data Access Risk Score. Taking data from the ongoing ecosystem monitoring, this dynamic scoring system updates in near real time, allowing data providers to identify potential issues swiftly. This proactive approach not only empowers data providers to better protect their customers but also fortifies their operations, instilling a sense of security and confidence.
Insuring ecosystem resilience: The critical role of Invela Risk Management Platform in safeguarding all stakeholders.
Another pivotal aspect of the Invela Network is the Invela Risk Management Platform. This comprehensive solution is designed to safeguard data providers from the potential risks associated with granting access to financial data. By leveraging the Data Access Risk Score, the Invela Network offers a comprehensive safety net that enhances trust and confidence across the open banking ecosystem.
As the open banking 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 improved risk management, continuous monitoring, efficient accreditation processes, and protective insurance coverage, the Invela Network is setting the stage for a more secure and innovative future in financial services.
In summary, the Invela Network is not just a step forward for consumer protection; it represents a paradigm shift in how data providers work with data recipients. 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 banking looks brighter than ever.