Welcome to FDATA North America’s monthly newsletter! These regular dispatches will share developments from our organization and our 30+ member companies, all of which are promoting financial access and inclusion with open finance use cases. We also include a list of upcoming industry events, and coverage of any market developments that impact fintech innovators.
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Monthly FDATA Member Spotlight: Trustly
In this interview, Trustly Americas President Pete Ohser explains how consumer-permissioned data access greatly expands options, lowers costs, and removes barriers to financial services, as well as detailing how Trustly has been working with the policymaking and banking communities to make open banking a reality:
FDATA NA News
FDATA Develops Draft Open Banking Privacy Principles
FDATA North America’s Privacy Working Group, a joint and ongoing effort between representatives from FDATA’s 30+ members, is continuing development of draft set of privacy principles to guide the implementation of open banking in the United States and Canada. These principles include detailed definitions of data types, basic requirements for transparency and liability, governance and oversight requirements, and technology standards for ensuring the privacy of consumer data in an open banking environment. This work will inform FDATA’s input into data privacy discussions taking place in both the U.S. and Canada in the months ahead. In the U.S., House Financial Services Committee Ranking Member Patrick McHenry (R-N.C.) recently introduced a financial data privacy discussion draft that, among other priorities, proposes to modernize the Gramm-Leach-Bliley Act (GLBA) to include data aggregators under the Act’s framework, and calls for consumers to have increased control over how their financial data is used. In Canada, the government recently tabled bill C-27, which, if enacted would provide federal data privacy and portability standards across the country.
As policymakers in the United States and Canada contemplate the data privacy safeguards for consumers and small businesses in both countries’ open banking frameworks, FDATA NA stands ready to provide its perspective on customer and small business data protection.
Member News & Activity
Basis Theory published two new posts on its blog; One which answered 10 of their most frequently asked questions about data tokenization, and another that provided a brief explainer breaking down the 2022 Nacha Data Protection Requirements.
Betterment, which relies on customer-permissioned financial data to streamline investment decisions, was named “Best Overall Robo Advisor” by The Wall Street Journal because of its competitive fees, investment offerings, and customer support.
BillGO published a blog post entitled, “Why Fintechs Should Invest In Bill Pay Technology,” which featured thoughts from Daniel Hawtof, BillGO’s SVP of Bill Pay Product. Hawtoff said, “Consumers are busy…and real time bill pay is hard to deliver. Most banks and fintechs don’t want to invest the time or resources to build the technology and payment network necessary to make real time — or even same-day payments a reality. But BillGO has built (and continues to invest in) the technology and payment network to ensure we are on the leading edge of real time payments.”
Codat CEO & Co-Founder Peter Lord recently joined Miguel Armaza on the Fintech Leaders podcast to discuss Codat’s origins, its international expansion, how it helps SMBs access credit, and the company’s future plans.
DirectID recently launched a new page on its revamped website explaining how the power of open banking data can scale businesses, drive efficiencies, manage risk, and create fairer outcomes for all. The company also announced a partnership with Mansfield Building to launch an open banking platform to make it easier for mortgage applicants to provide their bank statements online.
EQ Bank has partnered with fellow FDATA member Flinks, a leader in open banking, to provide EQ Bank customers with the ability to share their financial data securely with third-party fintech applications of their choosing. This partnership, and the integration of Flinks Outbound, an open banking environment, provides EQ Bank with the framework to quickly deliver flexible open banking capabilities and easily launch and operate new API data sharing methods while providing the bank with critical new data management capabilities. EQ customers who provide explicit consent will have the visibility into what data are they sharing, with whom, and for how long.
Envestnet Yodlee recently published a free white paper entitled, “Unlocking The Benefits Of U.S. Open Banking,” which provided detailed analysis of how the developing ecosystem of new and improved data access methods between financial institutions, data aggregators, application providers, and consumers offers powerful benefits for those who are ready.
Flinks¸ in addition to its new partnership with EQ Bank, announced a new partnership with Ping, an enterprise identity solutions. This partnership will enabled millions of customers across the U.S. and Canada to link their financial accounts to fintech apps and enjoy new streamlined banking experiences in a safe and compliant way. The new partnership also will help ensure Flinks’ open banking API technology is secure and scalable, allowing hundreds of third-party financial apps to gain instant access to user-permissioned data fast and simply. The customer experience will be seamless, with Flinks handling the user authentication and access on the front end and Ping Identity’s solutions working invisibly on the back end. The partnership enabled Flinks to build and launch its new solution within six months.
Fiserv and fellow FDATA Member MX are joint recipients of the Tearsheet 2022 Data Innovation Award. This award underscores the companies’ roles as leaders in open finance. Fiserv and MX were recognized for enabling consumers to securely and reliably share financial data with their favorite apps or services through direct connections, eliminating the need to share personal credentials such as usernames and passwords with third parties. The award was presented as part of Tearsheet’s DataDay Awards 2022, which recognize and celebrate the best data products, services, and brands powering the modern financial system.
MX has expanded its reach into open banking through partnerships with Sionic Mobile Corp., a provider of consumer-to-business payments technology, and FuturePay Inc., a provider of digital revolving credit solutions for e-commerce merchants and their customers. Sionic is embedding MX’s instant account-verification and account-aggregation services into its consumer microsite and mobile software development kit. FuturePay will integrate MX’s instant account-verification and data-cleansing apps with FuturePay’s MYTab digital revolving credit platform for online merchants, which allows them to offer online shoppers a credit line for making purchases with any merchant in the FuturePay network.
Plaid’s Payment Initiation Service (PIS), an API for real-time payments via Open Banking, received the Highly Commended recognition from FinTech Futures as a Best Real-Time Payments Solution.
Salt Edge published a new blog post entitled, “Three Practical Ways For Any Business To Leverage Open Banking,” which explained the many ways that granting access to businesses bank account data can be leveraged to reduce costs, increase automation, and create seamless experiences for users.
Vopay announced a partnership with Canadian property management software provider Plexflow to create a combined technology that will allow property managers to focus on the service they provide rather than be bogged down by manual processes. With VoPay’s payment technology in place, property managers can verify available funds, facilitate instant rent collection, and streamline the onboarding process for tenants. By managing all payment-related operations from a single portal instead of many, cash flow management, and reconciliation will become a much more fluid process.
Trustly published a new blog post entitled, “How Open Banking Meets The Needs Of The Creator Economy.” The blog post explained how open banking offers more freedom and transparency for individuals no matter the source of income, which is perfect for content creators, small entrepreneurs, and artists, who often need access to different services. They’ve also announced a new partnership with Gr4vy that will allow its online merchants to add Trustly as an Open Banking payment option at checkout.
Xero released the beta version of a new bank statement extraction feature in Hubdoc that will be gradually rolled out over the next few weeks in the United States and Canada. This new beta feature exports transaction data from PDF statements of supported banks into a pre-formatted CSV file that allows manual upload into Xero or QuickBooks Online. It will support debit and credit statements from Royal Bank of Canada, TD Canada Trust, and Chase Bank. To work around bank data access issues in the US and Canada, this feature will only work with digital PDFs downloaded directly from a bank account statement.
Events and Submission Deadlines
- August 15–17: VenCent Fintech Summit
- August 23–25: Fintech DevCon 2022
- August 24-25: XeroCon New Orleans
- September 12-14: FinovateFall Conference
- September 12-14: Lend360 Summit
- September 21: Fintech Talents Embedded Finance North America Virtual Event
- September 20-22: MX Money Experience Summit
- November 1-2:CIX SUMMIT 2022