The Financial Data Exchange (FDX) has achieved a significant milestone with its official recognition by the Consumer Financial Protection Bureau (CFPB) as a standard-setting body for the US Open Banking ecosystem.
Standard setting body for US Open Banking
This recognition comes as the CFPB rolls out its new Open Banking regulation, underscoring FDX’s critical role in shaping the future of secure, consumer-permissioned financial data sharing.
What This Means for Open Banking
The CFPB’s recently introduced Rulemaking on Personal Financial Data Rights requires thousands of financial institutions, fintechs and data platforms to establish or update interfaces that enable consumers to share financial data with authorised third parties.
Recognised standard-setting bodies, such as FDX, are now empowered to develop consensus standards that businesses can use to achieve compliance with the new regulations.
“This recognition provides helpful clarity to the market at a critical time,” says Kevin Feltes, CEO of FDX.
“Many firms are running fast to comply with the CFPB’s Open Banking regulation. This milestone highlights FDX’s leadership in fostering collaboration across the financial ecosystem for secure, interoperable data sharing.”
FDX’s Contributions to Open Banking
FDX has been at the forefront of Open Banking innovation, with its API standard already facilitating secure data sharing for over 94 million customer accounts in North America.
The FDX standard offers a range of benefits:
- Cost Reduction: Simplifies the development of interoperable interfaces, reducing integration costs for firms.
- Improved Consumer Experience: Supports more unified and reliable interactions for consumers managing financial data.
- Regulatory Alignment: Helps companies comply with the CFPB’s Rulemaking through updated consensus standards.
Franklin Garrigues of TD Bank, co-chair of the FDX Board, highlighted FDX’s commitment to inclusivity and transparency, noting, “Since its founding, FDX has incorporated input from diverse stakeholders into our consensus-driven process for defining standards.”
The Urgency of Standardisation
The CFPB’s Open Banking regulation is expected to transform how businesses and consumers interact with financial data, creating an immediate need for scalable, standardised solutions.
FDX’s recognition ensures the availability of robust tools and frameworks to help firms navigate these changes.
“FDX’s recognition is a key milestone in promoting reliable, safe data sharing as the Open Finance ecosystem grows,” added Jane Barratt of MX, co-chair of the FDX Board.
As Open Banking evolves, FDX invites organisations of all sizes to join its membership and collaborate on the standards shaping the future of financial data sharing.
By fostering a transparent and consensus-driven approach, FDX is poised to play a pivotal role in the adoption of Open Banking across the US, ensuring much needed compliance and innovation in the US market.
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