Regions Bank has announced its partnership with Axway, a leading data integration company, to implement Axway’s Amplify Open Banking solution. This initiative aims to enhance open banking capabilities for Regions’ Consumer Banking, Corporate Banking, and Wealth Management clients.
Open banking enables customers, with their consent, to securely share financial data between financial institutions and third-party service providers. This supports activities such as financial management and budgeting. Currently, Regions Bank customers authorize data sharing through a credential-based process known as “screen scraping.” However, the bank’s adoption of Amplify Open Banking will transition this process to a more secure and seamless API-based system.
Enhancing Security and User Experience
The new system will provide a more secure and efficient method for customers to share their financial data. Here’s how it will work:
- Improved Consent Management: Instead of third-party platforms storing banking credentials for repeated use, customers will authorize data sharing on a transaction-by-transaction basis. This eliminates the need for third-party platforms to save sensitive credentials.
- Enhanced Security: A secure API connection will link the customer’s Regions Bank account with their chosen third-party platform. Regions will monitor third-party activities and give customers the ability to review or deactivate data sharing at any time.
- Corporate Banking Integration: Corporate Banking clients will benefit from Amplify’s Marketplace feature, allowing seamless and secure API connections for financial data sharing.
“At Regions, our focus is on serving customers when and where they want,” said Tim Mills, Emerging and Digital Payments Group Manager at Regions Bank. “This new solution captures customer consent, removes the need for credential sharing with third parties, and provides an added layer of security to protect customer data. Open banking is the future, and we are excited to partner with Axway to make banking more convenient and secure for our customers.”
Rollout and Customer Education
Once the Amplify Open Banking system is launched in the coming years, customers will be prompted to reenter account information on the third-party platforms they currently use. Regions Bank plans to provide educational materials through its online banking portal and mobile app to prepare customers for this transition.
Key Features of Amplify Open Banking
Axway’s Amplify Open Banking is built to accelerate digital transformation by securely opening data and processes. Key features include:
- FDX-Compliant APIs: The solution adheres to standards set by the Financial Data Exchange (FDX), promoting interoperability and secure financial data sharing. Regions joined FDX in 2021.
- Developer Marketplace: An enhanced marketplace facilitates seamless API connections for financial institutions and developers.
- Integrated Consent Management: Customers can opt-in to approve data collection, usage, and sharing while retaining the ability to unsubscribe at any time.
The Importance of Open Banking
Open banking has become a transformative trend in the financial industry, enabling greater financial inclusion and innovation. By fostering collaboration between banks and third-party fintech companies, open banking can help deliver personalized financial services, improve transparency, and offer competitive financial products.
Regions Bank’s move aligns with global trends in open banking, where regulatory frameworks like PSD2 in Europe and open banking standards in markets like Australia and Canada are driving adoption. These frameworks emphasize customer control over data, interoperability between systems, and improved financial security.
Benefits for Customers and Fintech Ecosystems
For customers, the partnership between Regions Bank and Axway means easier access to innovative tools for managing finances, investments, and expenses. Fintech providers, on the other hand, benefit from standardized and secure data-sharing protocols, enabling them to build better applications and services without compromising user security.
“We are thrilled to extend our collaboration with Regions Bank to provide secure, standardized access to data,” said Tom Hogan, Vice President for Financial Services and Open Banking at Axway. “This partnership will empower customers to leverage the growing ecosystem of innovative fintechs and third-party providers.”
Regions Bank’s adoption of Amplify Open Banking reflects a broader shift in the financial industry toward digital transformation. As financial institutions increasingly embrace open banking, customers can expect greater control, transparency, and innovation in their banking experiences.
The collaboration underscores Regions Bank’s commitment to innovation and customer-centric solutions, ensuring a secure, streamlined, and future-ready banking experience for its clients
About Regions Financial Corporation
Regions Financial Corporation (NYSE:RF), with $157 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, and mortgage products and services. Regions serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates approximately 1,250 banking offices and more than 2,000 ATMs. Regions Bank is an Equal Housing Lender and Member FDIC. Additional information about Regions and its full line of products and services can be found at www.regions.com.
About Axway
Axway is an independent technology provider that sustainably grows enduring value for our customers based on a history of trust, security, and stability that goes back nearly 25 years. Our extensive portfolio, which encompasses Managed File Transfer, B2B Integration, Financial Accounting Hub, and comprehensive API management through Amplify, empowers organizations to seamlessly integrate their internal and external ecosystems and succeed in a shifting digital business landscape. Learn more at axway.com
