Regions Bank Adopts Axway’s Amplify for Enhanced Open Banking Security

January 8, 2025
Regions Bank Adopts Axway’s Amplify for Enhanced Open Banking Security

In a move to enhance its open banking capabilities, Regions Bank has selected Axway’s Amplify Open Banking solution, targeting improvements in consumer banking, corporate banking, and wealth management services. Open banking facilitates secure sharing of clients’ financial data between financial institutions and third-party service providers, contributing to various functionalities such as financial management and budgeting. Before this, Regions Bank customers used the credential-based method known as “screen scraping” to provide third-party platforms with access to their financial data. This practice involves users sharing their banking credentials with third-party applications, which then log into their bank accounts to retrieve necessary data.

Transition to API Solution for Increased Security

Currently, the screen scraping method presents several security vulnerabilities, notably because it involves third-party platforms storing and using customer credentials, increasing risks related to data breaches and unauthorized access. In aiming for a more secure and streamlined user experience, the Amplify Open Banking solution from Axway will replace this outdated system with an advanced API (Application Programming Interface) solution. This new approach will ensure that third-party platforms do not store sensitive banking credentials. Instead, Regions Bank will authorize consent to share specific account information only after each transaction is explicitly approved by the client.

One significant advantage of this API-driven method is that it provides an added layer of security by removing the need for third-party platforms to store the banking credentials on their systems, thereby reducing the risk of credential-based attacks. Customers will still enjoy the flexibility of sharing their financial data with the third-party services they trust but within a more controlled and secure digital environment. Regions will monitor third-party activity and give users the ability to review and deactivate data sharing with ease from their Regions Bank account at any time.

Tim Mills, manager of Regions Bank’s emerging and digital payments group, emphasized that as the reliance on third-party applications for managing financial data grows, this new API solution will become a cornerstone of ensuring customer consent is properly captured, credential sharing is minimized, and security is significantly enhanced.

Streamlining User Experience with Amplify

For corporate banking clients, the introduction of Axway’s Amplify Open Banking solution promises even greater benefits through its Marketplace feature. This feature allows for a secure and seamless integration with Regions’ financial data via an API, providing a smooth, uninterrupted link between the client’s financial system and the bank’s data infrastructure. Once Amplify is launched, customers will encounter a one-time prompt from third-party platforms to re-enter their account information, thus transitioning smoothly into the new system without major disruptions.

The Amplify Open Banking solution also offers APIs that adhere to the standards set by the Financial Data Exchange (FDX), a nonprofit organization committed to promoting its interoperable and royalty-free FDX API for financial data sharing. By joining FDX in 2021, Regions Bank leverages these standards to ensure its solution remains compatible across different financial institutions and third-party platforms. This compliance ensures a higher level of trust and security, as standardization helps in maintaining consistent and secure data-sharing practices.

Furthermore, the solution incorporates an advanced developer marketplace designed to facilitate seamless collaboration between financial institutions for API integration. This marketplace isn’t just a repository of APIs but also includes tools for integrated consent management, which allows customers to opt in, authorize data collection, usage, and sharing, and opt out anytime they wish. Additionally, the marketplace aids developers in creating secure and efficient API solutions, vital for maintaining a robust open banking infrastructure.

Conclusion

Regions Bank has partnered with Axway by selecting its Amplify Open Banking solution to elevate its open banking services. This move is intended to enhance consumer banking, corporate banking, and wealth management. Open banking allows secure sharing of customers’ financial information between their banks and third-party service providers, aiding tasks such as financial management and budgeting.

Previously, Regions Bank customers relied on a method called “screen scraping” to grant access to third-party platforms. This practice required users to share their banking credentials, enabling third-party applications to log into their accounts and retrieve data. By adopting Axway’s Amplify Open Banking solution, Regions Bank aims to simplify and secure this process, offering customers a more streamlined and safer way to manage their financial information. This transition from credential-based access to open banking highlights the bank’s commitment to modernizing its services and enhancing customer experience through improved technology and security measures.

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