“SIFMA’s New Data Aggregation Principles and What They Mean for the Financial Sector”
Last week, the Securities Industry and Financial Markets Association (“SIFMA”), a trade group for the United States securities industry, issued a set of Data Aggregation Principles (“the Principles”). In general, data aggregation applications are able to aggregate a customer’s financial data across different accounts, from different institutions. While such applications provide customers with desired convenience, tools and analytics, they also pose security risks by virtue of their ability to access the accounts.
This Stroock Special Bulletin provides an overview of the Principles, which are intended to provide guidance to organizations working with data aggregation applications on how to provide customers with secure access to their financial information.