Open finance is accelerating – and with it, the way data, trust, and innovation flow across the U.S. financial landscape is being fundamentally reshaped. Yet as the ecosystem expands, its defenses remain dangerously underdeveloped.
Why?
Traditional Third Party Risk Management (TPRM) has proven ill-suited to the open finance environment. Its frameworks are simultaneously heavyweight and generic – designed for broad financial institutional coverage, but misaligned with the specific risks introduced by open finance.
The consequence?
Proliferating vulnerabilities, a liability model that deters investment and innovation, and a widening trust gap.
At Invela, we believe open finance must be built on a secure, scalable foundation – one that aligns incentives and distributes accountability fairly.
That’s why we’re championing a new framework for open finance risk management (OFRM): transforming distributed risk into federated resilience, and rebalancing liability from blank check to proportional accountability.
The Open Finance Risk Management whitepaper to learn more.
Where TPRM falls short
TPRM frameworks are designed to cover every third-party eventuality for financial institutions. But in doing so, they leave open finance-specific risks unaddressed, including:
- API exploitation and misconfiguration
- Weak consent management
- Synthetic ID and credential stuffing
- Mobile app and payment flow vulnerabilities
- Data breaches and unauthorized access
These risks are introduced by third parties – and are as widely distributed as the ecosystem itself. Yet it’s financial institutions that remain liable. In the open finance context, TPRM simply does not work.
Seizing the opportunity for OFRM
At Invela, we’re reshaping the risk management landscape by revisiting the statutory foundations of TPRM – this time through the lens of open finance. By aligning OFRM with broader safety and soundness regulations that banks and credit unions already follow, we’re building a solution that respects consumer data rights while promoting innovation and competition.
Open finance cannot scale on blind trust and blank checks. It must be underpinned by federated resilience, aligned incentives, and shared accountability. OFRM is the blueprint – and Invela is the infrastructure, insight, and alignment engine that makes it real.
Download the Open Finance Risk Management whitepaper.
