TD Bank will let finance apps connect without your bank password

TD Bank U.S. says money apps will be able to connect to your account without asking for your bank username and password. The bank and data network Akoya announced the plan in a press release on Tuesday, Oct. 20. Clients will also be able to see which apps have access and turn that access off at any time.

What changed

Many budgeting and payment apps need a view of your bank data to work. TD and Akoya will use a secure connection called an API, which is a controlled digital doorway between two systems. It uses Akoya's Open Finance Solution, which includes the technology and day-to-day support to link banks with apps and data aggregators. Aggregators are companies that collect financial data for apps.

Apps and aggregators will begin joining the platform in the fourth quarter, according to the release.

Who it affects

TD clients who use linked finance apps are the main group. The release says they can use these tools without sharing login details with third parties. App makers get one consistent way to connect to TD.

A 2021 PYMNTS Intelligence report found that 80% of third-party financial app users link their bank accounts, and 67% of them expect their credentials to be protected from unauthorized access.

What is not known yet

• Which apps and data providers will join first.
• Whether apps you already use will switch over, and when.
• Where in TD's app or website you will manage access.