FDATA North America Newsletter November 2023
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. Know someone who’d like to receive these monthly updates? Send them here to sign up.
FDATA North America News
FDATA NA Statement On The CFPB Proposed Rule Implementing Section 1033. On October 19, 2023, the Consumer Financial Protection Bureau (“CFPB”) released its long-awaited proposed rule implementing Section 1033 of the Dodd-Frank Act. As anticipated, the Notice of Proposed Rulemaking (“NPRM”) calls for a legal right for consumers to access and share to their data, requires that data providers build dedicated “developer portals” to make data available to consumer-permissioned third parties, promotes competition and innovation, and includes data privacy and security requirements for third parties. FDATA released a statement on the NPRM, which can be found here.
Submission by FDATA NA To the House of Commons Standing Committee on Industry and Technology (INDU) Regarding the Study of Bill C-27. On October 31, 2023 – FDATA NA submitted a written brief to the Canadian House of Commons Standing Committee on Industry and Technology ahead of testifying before the panel, advocating for consumer-permissioned access to financial data in Canada. FDATA NA noted it supports the implementation of an open finance regime in Canada, emphasizing the right of consumers and SMEs to securely share their financial data across providers. FDATA NA praised recent U.S. advancements in open finance regulation and urged Canada to follow suit, highlighting the importance of Bill C-27 for data portability and privacy. Click here to read the brief and click here to watch the hearing.
Member News & Activity
API Metrics released a blog post entitled “Navigating The CFPB’s Latest Rulemaking On Personal Financial Data Rights: Lessons From Open Banking And Beyond,” focusing on the Consumer Financial Protection Bureau’s (CFPB) new draft rules on Personal Financial Data Rights.
Basis Theory published a blog post highlighting its pivotal role in empowering businesses across various industries to offer branded debit and credit cards to their customers. The blog noted that the platform does more than just issue cards; it assumes responsibility for numerous security elements, including KYC, and extends additional services like funding, transaction monitoring, and reporting.
Envestnet Yodlee introduced Credit Accelerator, a new technology solution that uses alternative data to enhance credit access, particularly for those with limited or no traditional credit history. The press release noted that this innovation aligns with the CFPB’s proposed open banking rule, enabling more inclusive credit decisions.
Experian announced a partnership with what3words, integrating their unique location system into Experian’s address validation solution. This enhancement allows businesses to provide more accurate delivery locations, particularly beneficial in hard-to-find areas.
Fiserv announced that it enhanced its financial technology offerings by streamlining access to its core banking APIs, enabling immediate, self-service access for developers. This development, part of the Banking Hub within Fiserv’s Developer Studio, aims to accelerate innovation in the financial industry.
Intuit announced that it expanded its financial offerings with QuickBooks Bill Pay, designed to enhance bill payment and accounts payable automation for businesses. This new feature within QuickBooks streamlines bill management, offering automated bill creation from vendor invoices, digital record-keeping, and various payment options.
Method published a blog announcing its strategic partnership with Plannery, focusing on alleviating the financial burdens of healthcare professionals. This collaboration introduces a bespoke financial wellness platform, specifically designed to address the unique debt challenges faced by healthcare workers.
MX announced that the Financial Technology Report named MX as one of The Top 100 Financial Technology Companies of 2023.
Plaid was featured in a PYMNTS article highlighting “consumer-centric” innovation in empowering money movement.
Questrade announced that MoneySense recognized Questrade as the Best Low-Fee Robo Advisor is Canada. Robo-advisors, like Questrade’s Questwealth Portfolios, use financial technology to make investment management more affordable and accessible.
Trustly published a blog summarizing how open banking transforms the consumer onboarding process by simplifying account verification. Trustly’s solution, Trustly Connect, leverages this technology to offer real-time, secure account information retrieval, streamlining the onboarding process, reducing fraud, and enhancing customer experience.
Xero announced its newest artificial intelligence (AI) feature that it said would enhance user experience by providing quick and efficient responses to queries asked in Xero Central. In addition to direct answers, the AI also supplies a list of other relevant content, significantly speeding up the process of accessing needed information.
Events and Submission Deadlines
- November 14: AFC Policy Summit 2023
- November 14: Fall 2023 Consumer Advisory Board Meeting – CFPB
- November 14: Senate Committee on Banking, Housing, and Urban Development Hearing, “Oversight of Financial Regulators: Protecting Main Street Not Wall Street”
- November 15: Fall 2023 Community Bank Advisory Council – CFPB
- November 15: House Financial Services Committee Hearing, “Oversight of Prudential Regulators”
- December 1: Data Science Salon New York
- December 6-7: FTT Embedded Finance & Super-Apps North America
- December 7: Compliance Outreach for Municipal Market Professionals – SEC
- December 29: Deadline for submissions to CFPB Rule on Personal Financial Data Rights