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FinTech Fiserv Completes Acquisition of Cloud Banking Firm Finxact

Payments and financial services tech solutions provider Fiserv has acquired Finxact, a press release says.

“Together with Finxact, we are accelerating the ability for FinTechs and financial institutions to deliver differentiated digital banking experiences to their customers,” said Frank Bisignano, president and chief executive officer of Fiserv. “We welcome the Finxact team to Fiserv as we focus on our shared commitment of innovating to create value for our clients.”

PYMNTS wrote recently that Fiserv had recently teamed with Mastercard company Finicity, in order to make a data access agreement to allow Fiserv clients to enable consumers to share account information.

See also: Finicity, Fiserv Ink Secure Data Access Agreement

This comes as the data sharing happens through apps using Finicity’s open banking platform. It provides access to several financial services and reportedly helps with financial literacy. The report notes that the partnership lets Finicity access tokenized consumer data through the AllData Connect, from Fiserv’s portal, letting consumers share financial data via third-party apps.

AllData Connect sends out an identifying token in place of a consumer’s username and password. From there, the third party provides the token to the financial institution to allow access for the data.

“Banking relationships remain central to most peoples’ financial lives, yet they also expect to access their financial data when and where they want,” said Justin Jackson, head of product for digital payments at Fiserv. “Direct connections via APIs eliminate the need for consumers to share usernames and passwords with third parties, providing convenient and simplified access to their data in a more secure way.”

Meanwhile, in February, Fiserv got a new board member in ValueAct, an activist investor, PYMNTS wrote.

This board seat was part of a settlement with the firm.

The news came as ValueAct supported the company’s Clover credit card processing business last August, saying it could be worth as much as $185 billion by 2024.

Learn more: ValueAct Joins Fiserv Board, Wants to ‘Aggressively Invest’ in Clover

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