PNC partners with Plaid for enhanced financial data security

Published 20/09/2024, 15:06
PNC partners with Plaid for enhanced financial data security

PITTSBURGH - PNC Financial Services Group, Inc. (NYSE: NYSE:PNC) has announced a new partnership with fintech company Plaid, aimed at providing PNC customers with a more secure way to share their financial data with third-party applications. This collaboration leverages an Application Programming Interface (NASDAQ:TILE) (API) provided by Akoya, which will serve as the conduit for data sharing between PNC customers and the digital financial tools powered by Plaid.

The agreement, which was finalized on September 20, 2024, marks a significant step towards enhancing data privacy and control for users, as it eliminates the need for customers to share their banking credentials with third-party apps. Instead, PNC's use of Akoya's API will allow customers to grant permission for their data to be shared securely.

Natalie Talpas, PNC's executive vice president of Digital and Payments, emphasized the benefits of the partnership, stating, "PNC customers will be able to achieve greater data security, privacy, and control while using the third-party financial apps and services they enjoy." She highlighted the efficiency and reliability of the Akoya-provided API in connecting data recipients, including Plaid, to PNC's financial information.

Christy Sunquist, head of Open Finance Partnerships at Plaid, also commented on the collaboration, noting that aligning with PNC on principles of security, access, and control was pivotal in forming the partnership. She expressed Plaid's commitment to moving away from credential-based access and to continuing collaboration with PNC.

This initiative is part of a broader trend in the financial services industry towards more secure and user-friendly data sharing practices. By providing a direct API connection, PNC and Plaid are contributing to the development of a financial ecosystem that prioritizes consumer privacy and control over personal financial information.

The partnership is based on a press release statement and is part of PNC's ongoing efforts to support its customers in managing their finances with greater autonomy and security.


In other recent news, PNC Financial has seen a flurry of activity from financial analysts. Piper Sandler maintained a neutral stance on the company, citing potential record net interest income (NII) in the upcoming year. This was followed by BofA Securities upgrading PNC's stock from Neutral to Buy, based on positive earnings per share revisions and a price target increase from $185 to $200.

Simultaneously, PNC Financial successfully issued $2.5 billion in senior notes, a move that could potentially strengthen its business operations. Citi also maintained a Buy rating on PNC shares, raising the stock's price target from $175 to $200, attributing this to improved NII forecasts and better expense management.

Baird also made a positive adjustment to PNC's outlook, raising the stock target by $25 and maintaining an Outperform rating. The bank's recent performance and expectation for a record NII in fiscal year 2025 were highlighted. These developments underscore PNC's financial standing and highlight recent changes in the company's performance.


InvestingPro Insights


As PNC Financial Services Group, Inc. (NYSE: PNC) forges ahead with innovative partnerships to enhance customer security and data privacy, the company's financial stability and market performance continue to be of interest to investors and stakeholders. PNC has demonstrated a commitment to growth and shareholder value, as evidenced by its history of raising dividends for 13 consecutive years, signaling confidence in its financial health and future outlook.

InvestingPro Tips indicate that PNC is not only a prominent player in the Banks industry but also boasts a high return over the last year, with a 53.78% one-year price total return as of the latest data. These returns are reflective of PNC's strategic initiatives and operational execution. In addition, the company is trading near its 52-week high, at 99.33% of this peak value, which underscores the positive sentiment among investors regarding PNC's market position and performance.

From a financial metrics standpoint, PNC's market capitalization stands at a robust $73.85 billion, with a price-to-earnings (P/E) ratio of 15.74, suggesting that the stock is reasonably valued compared to earnings. The company's revenue for the last twelve months as of Q2 2024 was reported at $20.4 billion, although it experienced a slight revenue decline of 3.68% during this period. Despite this, PNC's operating income margin remained strong at 31.32%, indicating efficient management and profitability.

For investors seeking additional insights and detailed analysis, InvestingPro offers more tips on PNC, including the company's dividend track record, analyst earnings revisions, and profitability predictions for the year.

(For more InvestingPro Tips on PNC, visit https://www.investing.com/pro/PNC)

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