Data aggregators unaffected by Intuit's plan to close its Financial Data API service

The company, which produces Mint and QuickBooks, won't have much effect on the wealth management industry

Mar 25, 2016 @ 12:05 pm

By Alessandra Malito

Intuit, the data aggregator that powers apps like Mint and QuickBooks, announced earlier this week it will shut down its Financial Data APIs.

Firms and advisers will still get data feeds and open architecture technology from other companies in the wealth management industry, including Quovo, Wealth Access, Yodlee, Morningstar's ByAllAccounts, Xignite and Blueleaf.

Lowell Putnam, chief executive of Quovo, said firms use APIs, or application program interfaces, as building blocks for in-house built software. But Intuit's plans to close its service, effective this November, won't have a big impact on those already in the industry because Intuit was focused largely on banks and credit cards, he said.

"Companies like Quovo, which is an investment-focused service, are going to be providing the exact same service from before," Mr. Putnam said.

An Intuit spokesman agreed that this will not affect financial advisers and broker-dealers.

Intuit called out aggregation partner Finicity to help service financial institutions in need of APIs. Meanwhile others, like Yodlee, which Envestnet acquired last August, said in a company blog post that they are ready and willing to assist in API migration.

"Envestnet | Yodlee would like to reassure these concerned developers associated with Intuit or its third party data resellers that Envestnet | Yodlee is making available a new QuickStart launch package that will help these companies through this difficult transition period," the company said in a blog post. Yodlee services more than 950 companies, including numerous financial institutions and apps.

A Yodlee spokeswoman added the company is integrating reconciliation and reporting features to its software.

Other data aggregators in the industry said there has been an uptick in calls lately, partly because of how hot the data aggregation market is, but also as a result of Intuit's bowing out.

Data aggregator Wealth Access has an out-of-the-box platform advisers and firms can use. Intuit stepping out may be the push firms need to give their existing software a makeover, with service providers like Wealth Access and others, said David Benskin, chief executive of Wealth Access.

"If you look at robo-advisers and other solutions, client experiences for bigger firms is dated and it needs to be refreshed," Mr. Benskin said.

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