Last month, CI’s Online Brokerage team published a Third-Party Access Management report detailing the features that help firms provide safer and more secure alternatives for clients looking to share their account information with another person or service. The report highlights 14 firms, examining the findability of their third-party management features, the available access levels and the granularity of the capabilities. As a preview of this recent report, this Insights post will recap some of the most notable features and discuss why third-party access management is increasingly important, as it sits at the intersection of security and transparency.
The significance of third-party access management
Third-party access management features enable clients to view, control and revoke access granted to both people and software. At a basic level, these capabilities are about protecting sensitive financial data. Without clear controls, data access introduces risk, especially in cases of credential sharing or outdated connections. Strong third-party access management helps mitigate threats tied to unauthorized access or data breaches by allowing clients to decide who has access to their account information and to revoke it instantly.
These tools also play a critical role in building trust and transparency among the firm’s client base. A dedicated experience that displays all third-party connections helps demystify what’s happening behind the scenes. This transparency is especially important as clients’ financial ecosystems become more interconnected.
U.S. Bancorp Self-Directed Investing – A targeted overview of third-party access
Clients are unlikely to regularly audit a buried subpage. Therefore, firms that surface connection data prominently and visually are better positioned to support meaningful client awareness of how their data is being shared. U.S. Bancorp Self-Directed Investing delivers a standout experience that provides a targeted overview of access to client data, including a visual breakdown of the kinds of data accessed via an easily digestible pie chart as well as brief yet informative descriptions of what these connections mean.
Charles Schwab and Vanguard – Granular access controls
Some firms offer tiered permission structures that give clients meaningful control over how much access a third party receives, rather than limiting them to a basic on/off switch. Charles Schwab offers clients three distinct access levels: View Only, Limited Trading Authority and Full Trading Authority. The Limited Trading Authority tier allows third parties to place trades and handle trading-related features without client approval, but does not allow them to withdraw money from the account.
Vanguard similarly offers three permission tiers: Information Only, Limited Authority and Full Authority. While permissions are similar between the two firms, Vanguard does include the ability to withdraw funds in the Limited Authority tier, but only to bank accounts on record.
Why third-party access controls are a competitive necessity
Full-featured third-party access management matters because clients’ needs vary significantly—a family member checking an account balance requires different access than a professional advisor managing investments. Offering clear and granular controls reduces the risk of over-permissioning and encourages clients to use formal access channels rather than the far riskier alternative of sharing login credentials outright. Yet our research found that only 50% of firms in our coverage set offer a way to grant third-party viewing access to another person, and just 50% surface software access management, representing a notable gap. As interconnected financial ecosystems become the norm, robust access management is no longer just a nice-to-have feature, but a safeguard against vulnerabilities that can extend well beyond any single firm.
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Jaclyn Poniros
Jaclyn Poniros is an Analyst on CI's brokerage research team.