MX, an open banking or open finance platform, has announced a new method for account verification called MXapi Processor Tokens.
According to a company statement, MX now offers an API data exchange that is simple and secure to validate users and transactions. The tokens are said to “dramatically increase the speed” of the service.
The tokenized data exchange enables customers to go to market faster, providing real-time balances before initiating a transfer.
Corinne Bartow, vice president of Fintech Partnerships at MX, commented:
“In a world where protecting against data breaches and other financial fraud is paramount, processor tokens enable our clients to protect their consumers. Whether moving money or opening an account, they no longer need to store the user’s verified account data or create new connections each time data is necessary to verify information. This is a big deal, especially in the Fintech multi-party ecosystem.”
She added that providing tokenized access to users’ data means they have reduced a security concern in ongoing partnerships that MX financial clients build with mutual partners.’
MX currently connects over 13,000 financial institutions and Fintechs, including over 85% of digital banking providers.