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The world of finance as we know it is rapidly changing. Increased accessibility to consumer and small business credit data is one clear factor in this industry evolution. Thanks to greater fintech data access, existing organizations can adapt faster, and new startups can break into the market with less barrier to entry. More accessible finance data means a positive shift in the industry that comes with increased responsibility, rapid innovation, and valuable partnerships.

Security and Responsibility in Fintech Data Access

Our wise Uncle Ben once said, “With great power, comes great responsibility.” In the instance of accessibility in consumer and small business information, this old adage holds its weight quite well.

Startup applications tend to have an advantage over enterprise organizations in their ability to be agile and make quick enhancements that disrupt the market, but finance companies in any phase share at least one common challenge: data security. Security tends to be the enterprise organization’s stronger suit; with years of experience in building systems and processes to protect the commodity of consumer and small business data, but startups are not immune to the repercussions of vulnerable data storage.

fintech data access

The Power of Fintech Data Access

Increased accessibility in consumer and small business credit data means more than just cool new apps being built more quickly, or a rapid increase in an organization’s revenue. Tools built that utilize finance data have the ability to shift economies and change lives on an individual scale. In a recent “Money 20/20” keynote, Richard Cordray of the CFPB offered the new federal organization’s perspective on the effect of increased data access:

“We see mobile technology and innovations in distribution making cost-effective financial services available in both urban and rural environments where traditional brick-and-mortar outlets may be uneconomical… This approach could open up opportunities to fashion brighter futures that benefit not only [underserved consumers], but the rest of us as well, thereby strengthening the economy as a whole.”

Partnering with a Leader in Fintech Data

Challenges associated with accessibility and security are where data and infrastructure partners like FNI come in. Storing and maintaining financial information can be a daunting (and risky) task to even the largest organization. Data partnerships allow small and large companies with “bolt-on” or modular data access in a tiny fraction of the time it generally takes to access and maintain the data internally. Many organizations have to wait half a year or more to even get in touch with bureaus to initiate the process of acquiring access tokens. Working with a fintech data partner allows for speedy transactions like credit scoring, credit decisions, and bureau-response without the inherent diligence or risk that is typically involved.

“Organizations need modularity for growth. Data and infrastructure partners bring the missing piece to the process. Managing as little as 10 to 20 percent of the application process or data access is where these partners bring the most value. This allows startups and larger organizations to build the way they want to with the peace of mind that the data they are accessing is efficient, and even more importantly, secure.” – David Williams, Sales Engineer, FNI

With dozens of years in loan origination experience, FNI has all-but written the book on finance data and data accessibility. We partner with organizations large and small to provide modular data access in credit decisioning, bureau response, and tailored consumer credit data. If you’re interested in a microservices or modular data partnership, let’s talk.