March 21--Digital Transactions -- The fast-growing field of open banking got another boost Monday when the big payment processor Fiserv Inc. announced a major industry player, MX Technologies Inc., will use its AllData Connect service.
AllData Connect is part of Fiserv’s AllData Aggregation platform that provides consumer-permitted access to tokenized financial account and transaction data held by Fiserv’s client banks and credit unions. These so-called open-banking connections allow payments providers and other financial-services players to verify the ownership of checking and other financial accounts, as well as the level of funding in those accounts, through application programming interfaces. The technology generates tokens as stand-ins for user names and passwords accessed through a common but less secure process called screen scraping, and has attracted a wide range of fintechs and other non-banks looking to facilitate payments.
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