The landscape of open banking is evolving rapidly. What began as basic data aggregation for budgeting applications has expanded into a sophisticated ecosystem supporting advanced services such as credit scoring, account opening, and payments. Adoption is accelerating - according to a recent Financial Data Exchange (FDX) announcement, approximately 114 million U.S. customer accounts are now connected through secure Open Banking APIs. This represents a 50% increase from 76 million accounts just one year ago.
As open banking matures, the financial services industry is looking toward next-generation capabilities, such as identity data portability, seamless international payments, and enhanced account-to-account (A2A) payments. However, the rise in data sharing also brings an increased risk of fraud and data breaches for banks, fintechs, and intermediaries. The complexity of open banking's value chain makes it difficult to clearly assign liability when incidents occur. Existing solutions are often fragmented and fail to align risk exposure with how data is used and accessed.
To address these challenges, Invela has joined forces with USQRisk, which is part of the alternative risk business within Ryan Specialty (NYSE: RYAN), to develop a cutting-edge parametric insurance program specifically designed for the open banking ecosystem. Leveraging Invela's accreditation and risk monitoring capabilities, this innovative program offers a timely and scalable solution to help limit key exposures and provide a degree of protection when events occur.
Steve Smith, CEO of Invela, expressed his excitement about collaborating with USQRisk due to their ability to handle the complexities and unique challenges that traditional insurance solutions often overlook.
"Invela and USQRisk are working together to create a customized solution that takes account of the risks associated with third-party providers, including their different use cases, data usage, and volumes. This collaboration is set to unlock the full potential of open banking while ensuring ecosystem resilience through insurance solutions that are designed to safeguard all stakeholders involved." - Steve Smith, CEO, Invela
As the worldwide open banking landscape continues to mature – and to expand towards open finance and even open data – the Invela and USQRisk collaboration represents a significant step forward in addressing the growing need for effective Data Access Risk Management solutions.
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