Yodlee is a web application software company that provides consumer-permissioned

data aggregation Data aggregation is the compiling of information from databases with intent to prepare combined datasets for data processing. Description The United States Geological Survey explains that, “when data are well documented, you know how and where to ...

, consolidating information from multiple accounts (credit cards, bank accounts, investments, etc.) by using open banking APIs.

Origins and history

Yodlee was created in 1999 as a free service. It offered a single website to input access information for other accounts, such as banks, investment brokers, credit cards, travel reservation services, shopping sites and news sites. Yodlee offered the technology for individuals to transfer money between savings and checking accounts and pay a bill online, as well as collect all of a consumer's financial information, including student loans, mortgage information, credit cards,

401(k) In the United States, a 401(k) plan is an employer-sponsored, defined-contribution, personal pension (savings) account, as defined in subsection 401(k) of the U.S. Internal Revenue Code. Periodic employee contributions come directly out of their ...

, for a bank or personal finance website. Its services were used by over 200 financial institutions, including

Citibank Citibank, N.A. ("N. A." stands for "National bank (United States), National Association"; stylized as citibank) is the primary U.S. banking subsidiary of Citigroup, a financial services multinational corporation, multinational corporation. Ci ...

and

Bank of America The Bank of America Corporation (Bank of America) (often abbreviated BofA or BoA) is an American multinational investment banking, investment bank and financial services holding company headquartered at the Bank of America Corporate Center in ...

. Yodlee started operations in Sunnyvale, California and then moved its headquarters to Redwood Shores, California. It also has offices in

London, UK London is the capital and largest city of both England and the United Kingdom, with a population of in . Its wider metropolitan area is the largest in Western Europe, with a population of 14.9 million. London stands on the River Tha ...

, and

Bangalore, India Bengaluru, also known as Bangalore (List of renamed places in India#Karnataka, its official name until 1 November 2014), is the Capital city, capital and largest city of the southern States and union territories of India, Indian state of Kar ...

. In 2000, Yodlee merged with its main competitor in the data aggregation space, an Atlanta-based company called VerticalOne, which was owned at the time by SecurityFirst, an

internet banking Online banking, also known as internet banking, virtual banking, web banking or home banking, is a system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institut ...

firm. In 2010, Yodlee partnered with

Y Combinator Y Combinator, LLC (YC) is an American technology startup accelerator and venture capital firm launched in March 2005 which has been used to launch more than 5,000 companies. The accelerator program started in Boston and Mountain View, Californi ...

, providing its financial services platforms to all Y Combinatorfunded companies. Yodlee then was said to have raised at least $116 million over its 10-year lifespan. As of 2013, Yodlee had over 45 million users, and over 150 financial institutions and portals (including 5 of the top 10 U.S. banks) offer services powered by Yodlee. On October 3, 2014, Yodlee went public on NASDAQ, trading under the symbol YDLE. It raised $75 million at $12 per share. On August 10, 2015 Yodlee sold itself to Envestnet for a reported $660 Million. As a result, it is no longer listed on the NASDAQ. In November 2017, Token partnered with Yodlee for payments and financial data aggregation.

Lawsuit

Yodlee encountered a controversy in which lawmakers claim that they are selling consumers’ personal financial data without proper consent, calling on the

Federal Trade Commission The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) United States antitrust law, antitrust law and the promotion of consumer protection. It ...

to investigate the matter. In August 2020, a

class-action lawsuit A class action is a form of lawsuit. Class Action may also refer to: * ''Class Action'' (film), 1991, starring Gene Hackman and Mary Elizabeth Mastrantonio * Class Action (band), a garage house band * "Class Action" (''Teenage Robot''), a 2002 e ...

was filed against Envestnet and Yodlee. The plaintiff, Deborah Wesch, claimed that she and other consumers were put at risk because the companies failed to adequately protect their consumer data and put in place sufficient security protocols. Yodlee and Envestnet claimed that the consumers consented to have their data accessed, and that the consumers didn't experience any tangible injuries from the sale of their anonymized data.

References

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External links

Official website
Online financial services companies of the United States Financial technology companies Account aggregation providers Companies based in Redwood Shores, California Private equity portfolio companies Warburg Pincus companies Software companies based in the San Francisco Bay Area Companies formerly listed on the Nasdaq Software companies of the United States Financial services companies established in 1999 Software companies established in 1999 2014 initial public offerings 2015 mergers and acquisitions 1999 establishments in California

Origins and history

Lawsuit

See also

References

External links