I write in response to the article in Money Marketing headlined,
Aggregation deals on hold after a scrape with the law.
Indeed, the FSA recently warned that aggregation falls outside its remit
and has urged banks to check legal and security issues thoroughly before
they partner with an aggregation organisation to offer such a service to
As the leader in aggregation services, Yodlee has been in discussions with
all the UK regulators to ensure that Yodlee meets all legal and regulatory
requirements including compliance with the Data Protection Act.
We are completely in agreement with the FSA that it is essential that
banks enter into agreements with estab-lished companies since they are
entrusting their brand and reputation to an outside party. We are also
working with the regulators and our customers to ensure that the consumer
is protected at every stage.
Since 130 financial institutions and consumer portals have already
partnered with Yodlee, having undertaken a thorough due diligence
procedure, we are confident that UK financial institutions and consumer
portals who follow the FSA advice will choose to work with Yodlee to offer
their consumers the benefits of aggregation services.
It is true that we are working with a number of UK partners to bring the
benefits and convenience of aggregation to their customers – a single view
of all their online accounts with one simple password.
It is not for Yodlee to determine or comment upon our partner's launch
strategies or to determine when and how they introduce the service to their
customers. However, we continue to drive the first wave of a truly secure
and reliable, user-friendly service offering for the UK.
In terms of security, the Yodlee model stores consumer passwords in a
highly secure vault using the latest physical, network and application
security. Technically, the consumer does not disclose their password either
to the bank or to Yodlee.
Unlike our competitors, Yodlee has the only proven approach and now has
1.4 million consumers utilising the service. Rather than bypassing the
regulators, Yodlee was the first to approach and has been actively working
with the FSA, BBA, APACS and the QIC to help define standards for the
industry, as it did in the US for the BITS forum.
Our competitors claims that they bypass legal and regul-atory issues
reconfirms Yodlee's concerns that in an unregulated environment financial
insti-tutions and consumers must be fully aware of the risks and how to
Director, international marketing,