United Kingdom-based financial data aggregation firm TrueLayer has launched the private beta of its API platform which will connect applications with financial services institutions. The platform assists developers with accessing bank data they need to build new apps and services.
TrueLayer consolidates and normalizes financial data from multiple sources into a single platform and combines it with technology that lets developers obtain the consent they need to link customer bank information and transactions into their applications without impacting compliance.
According to new rules established by Payment Services Directive 2 (PSD2) and CMA guidelines, banks and other financial institutions now have to provide third party access to customer data. The European Union General Data Protection Regulation mandates businesses to obtain informed consent from consumers in order to use their personal data.
TrueLayer reduces friction through its universal API which allows developers to access data from every financial institution from a single, secure gateway. Fintechs developing products in this environment can manage user consent and offer permissions so customers can be specific when authorizing access to their data. The API supports bank account verification, KYC processes and account aggregation and provides transactional data useful in credit scoring and risk management.
TrueLayer was cofounded by serial entrepreneur Francesco Simoneschi. Mr. Simoneschi is also a partner in VC firm Mission Market and previously cofounded Staq and DomainsBot. Participating investors include Connect Ventures, Graph Ventures, Tony Jamous, and Eric Nadalin.
“Consumer choice is shifting from banks to banking,” Mr. Simoneschi said. “Our vision is to create cloud infrastructure that will allow banks to connect with applications and make their services available to innovative startups that are keen to re-invent the customer experience. Ultimately, it’s also vital the the traditional banks open up their systems and become more agile – or they risk getting left behind – so the platform we offer is win-win.
“To date, financial innovation has been hindered by the industry’s reliance on legacy architecture and by the banks’ closed-door approach to technology and data. Although new regulations like PSD2 in Europe will help create a solution to this challenge, they don’t go far enough to drive real change.”