Jack Henry teams up with MX to enable secure data sharing

US-based MX Technologies has expanded its agreement with fintech Jack Henry to enable consumer-permissioned data sharing across more than 800 financial institutions.

Under the partnership, MX’s interoperable API platform will directly connect through Jack Henry’s secure API connections, to enable Jack Henry to replace inbound screen scraping on its ‘Banno Digital Banking Platform’.

In creating direct API connections with clients, Jack Henry is making sure that consumers can connect their financial accounts without the need to share passwords and usernames.

Ben Metz, chief digital and technology officer at Jack Henry, said the industry needs to “raise the bar” when it comes to delivering “money experiences that keep consumer data safe”.

“By moving to API connections, financial institutions can better detect and mitigate fraud while delivering a more seamless experience to consumers,” he added.

There are nearly 10 million registered users on the Banno digital platform.

According to Raymond den Hond, chief commercial officer, partners at MX, consumers have an average of five to seven relationships with various financial providers.

But, he said that without a clear and comprehensive picture of their finances, they’re left making decisions based on “pieced-together information”.

“Consumers should be able to quickly and easily connect their accounts for a complete view of their financial life,” den Hond added.

“MX is excited to partner with Jack Henry to drive direct API connections and help ensure consumers have full control of their financial data and drive industry adoption of Open Finance forward.”

In January, Jack Henry unveiled Banno Business, a cloud-native business banking solution, to enable community and regional financial institutions to offer “modern banking experiences” to SMBs.

Also, last month US-based fintech Pinwheel’s direct deposit switching (DDS) solution became available to community and regional financial institutions’ accountholders through the Jack Henry digital banking platform.