Banking / Finance

To end fight with Data-Hungry Finance apps, Banks turn to Tokens

14th Nov `15, 10:02 AM in Banking / Finance

The biggest U.S. banks, alarmed by the growing use of data-hungry apps that help consumers track their finances,…

BDMS
Guest Contributor
 

The biggest U.S. banks, alarmed by the growing use of data-hungry apps that help consumers track their finances, are offering a technological compromise.

Instead of allowing third-party aggregators such as Mint to directly access customer records, the banks would dole out information in protected data packets, using a process known as tokenization, people with knowledge of the matter said.

A token, which replaces sensitive data with a digital ID that’s only good for one transaction, would give banks control over the most sensitive data their customers share, while also allowing the sites to continue to provide the services consumers want, said the people, who asked not to be identified because the plans aren’t yet public.

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