FDATA North America July Newsletter

by rebecca


FDATA North America Responds to CFPB Data Broker RFI. In response to the CFPB’s Request for Information (RFI) Regarding Data Brokers, we submitted a comment letter stressing in the strongest possible terms, that third-party providers of financial services that rely on consumer-permissioned data are not data brokers, and therefore should be exempt from any Bureau rulemakings, guidance, or other actions it may consider in the data brokerage space. We also used this opportunity to further deploy our FDATA Privacy Principles which define customer-directed data as financial data that is collected or shared in accordance with a clear affirmative action by or request from an end user or their authorized agent, rather than data collected passively, such as data that may be collected automatically through pixels or cookies as a consumer navigates through web pages. Finally, the letter reiterated our long-standing positions that no third party should have access to any financial data element permissioned by a customer that is not required to fuel the use case for which that customer has opted in, and that the CFPB should expand its supervisory authority to cover data aggregators.

Member News & Activity

Codat published a blog post entitled “5 reasons you need accounting data for your liquidity assessments” which explained how Small and Medium sized businesses (SMBs) can boost their credit applications by sharing not only their bank information, but also accounting data, since accounting data can provide more granular insights into a business’s liquidity and lets the applicant demonstrate how many bank accounts they have,and the total revenue held in each one.

Envestnet Yodlee has announced a customer-permissioned data sharing agreement with American Express. This new API integration will provide new digital banking options for customers and allow them to more easily leverage their American Express account information to better manage their personal finances and business expenses through secure connections with a variety of third-party applications. This integration eliminates the need for credential sharing, improves data accuracy and reliability, and accelerates financial data access.

GoCardless’ Ben Morfoot, Director of Product Management was recently interviewed on Fintech Futures North American Edition’s “What the Fintech” podcast. Ben and FinTech Futures editor Paul Hindle discuss how businesses can utilize bank payments and their key use cases, how advancements in embedded finance and open banking have enabled payment service providers to offer these methods to meet growing demand, and what the future looks like for the digital payments space.

Fiserv CEO Frank Bisignano joined Intercontinental Exchange’s “Inside the ICE House” podcast to talk about the future of payments, navigating mergers and how Fiserv’s Clover platform transforms small businesses. Frank shared his story of rising through the ranks of Wall Street, riding a phoenix through the rebirth of First Data, and the future the FinTech Revolution.

Method published a new blog post from its Co-Founder and COO Mit Shah entitled “The Critical Importance of Liability Account Inclusion in the CFPB’s 1033 Rule.” This piece detailed how Method’s technology can help solve the challenges faced by un-and-underbanked Americans, particularly in rural areas, and how the upcoming CFPB Section 1033 rule can help expand and democratize access to modern payment methods and affordable credit.

M Science CEO  Michael V. Marrale delivered a keynote address at Finovate Spring, where he discussed how M Science is leveraging data and artificial intelligence to help clients outperform and how data is the big winner in an AI driven world.

MX announced that it has partnered with iuvity, a cloud-first digital banking and open service platform provider to enable secure data sharing and financial account aggregation within iuvity’s digital banking platform. Through this partnership, iuvity’s clients will be able to leverage MX’s open finance APIs to provide their customers with a more secure and reliable data sharing experience and power insights to help customers meet their financial goals.

Plaid partnered with MIT Technology Review on an article and report entitled “Open finance heralds a new era: Fintech innovations may hold the key to increasing customer demands, evolving regulatory reform, and ample opportunity.” This piece gives an overview of open banking, how it expands financial access and inclusion, and how it can empower the use of alternative data to improve credit scores and access.

Trustly CBO Craig McDonald joined Austin Prey at Pymnts for a Fireside Chat on Account-to-Account (A2A) payments, how they can offer more value, and why they go hand in hand with Open Banking. McDonald explained that while real-time rails have the potential to disrupt the status quo, open banking is key to unlocking their full potential, saying “all of these things coming together, open banking, the regulatory framework, real-time rails, and the data to be able to adjudicate a transaction in real-time will provide merchants with what they really want — a positive authorization response, great UX, great conversion, low cost and a non-refutable transaction.”

Validify has been acquired by Ribbit, Inc, a provider of alternative bank and payment data. The acquisition will create a leading banking and payment data solutions platform with the largest alternative database of bank and payment data in the marketplace. The companies expect that RIBBIT’s predictive analytics and data assets combined with ValidiFI’s verification and compliance solutions will expand the breadth and depth of products and services offered.

Vaultree CEO Ryan Lasmaili penned his inaugural article as a Forbes Councils Member entitled “Resistance Is Not Futile: How To Fight Cybersecurity Complacency” which highlights fully functional Data-In-Use encryption, the necessity of “compliance over complacency” and describes how end-to-end encryption can be implemented.

Vopay published a new blog post entitled “How Real-Time Payment APIs are Transforming Payroll Software” which describes how real-time API’s work, why they are becoming more popular, how they can help meet the growing needs of the gig economy and demand for faster payouts and early wage access.

Xero CEO Sukhinder Singh Cassidy joined Bloomberg Technology to discuss the global outlook for tech, the state of cloud adoption, where Xero is headed and its competition with Quickbooks. She also gave a more personal interview for this piece in The Star, where she discussed her life background and goals for the company.

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