FDATA North America January 2025 Newsletter

by rebecca

FDATA North America Monthly Newsletter for January 2025

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 North America Statement on the CFPB’s Proposed Rule Under FCRA. On December 3, 2024, FDATA North America (FDATA) expressed disappointment with the Consumer Financial Protection Bureau’s (CFPB) Notice of Proposed Rulemaking (NPRM) under the Fair Credit Reporting Act (FCRA). Steve Boms, Executive Director of FDATA North America, stated that the proposed rule is a significant misstep, as consumer-permissioned data access platforms are not “data brokers” and should not be regulated as such. He warned that the CFPB’s proposal risks creating a regulatory framework that contradicts its final Section 1033 rule, potentially undermining consumer choice, control, and competition—key benefits of open banking. Boms emphasized the potential negative consequences for consumers and the financial tools they rely on, urging the CFPB to reconsider its approach. Read the full statement here.

FDATA North America Submits Comments to the FDIC’s NPRM on Recordkeeping for Custodial Accounts. On December 6, 2024, FDATA North America (FDATA) submitted comments on the FDIC’s Notice of Proposed Rulemaking (NPRM) regarding recordkeeping for custodial accounts. FDATA supports the FDIC’s goal of protecting customer funds and enhancing transparency but urged clarification that non-transactional settlement accounts should not be classified as “custodial deposit accounts with transactional features.” These accounts, vital for digital payments and e-commerce, act as temporary conduits without granting transactional rights to account owners. Imposing customer-level recordkeeping on these accounts could disrupt payment systems and increase costs unnecessarily. FDATA also called for regulatory coordination, emphasizing alignment with other actions, such as the finalized Section 1033 rule, to foster innovation, protect consumers, and ensure affordable financial services. A full copy of the letter is available here. Read the full release here.

FDATA North America Statement on the Incoming Chair of the House Financial Services Committee. On December 12, 2024, FDATA North America (FDATA) congratulated Representative French Hill (R-AR) on his appointment as the next Chair of the House Financial Services Committee. Steve Boms, Executive Director of FDATA North America, praised Rep. Hill’s dedication to fostering financial innovation during his time on the Committee and expressed enthusiasm for continued collaboration in the next Congress. Boms emphasized the importance of ensuring that consumers and small businesses have free and full access to third-party financial tools and data, which are essential for financial inclusion, competition, and economic growth. He conveyed confidence that, under Rep. Hill’s leadership, the Committee will support policies that empower consumers, drive innovation in financial services, and establish a legally binding consumer financial data right. Read the full statement here.

FDATA North America Statement on Consumer-Driven Banking Proposals in the Fall Economic Statement. On December 16, 2024, FDATA North America (FDATA) expressed disappointment with the government’s Fall Economic Statement (FES) proposals to expand the Consumer-Driven Banking Act (CDBA) and the delay in implementation by at least another year. Steve Boms, FDATA’s Executive Director, criticized the one-size-fits-all approach, which burdens innovative fintech providers with compliance obligations while offering minimal consumer protection benefits, ensuring only the largest tech companies and financial institutions can participate. This approach undermines the government’s goals of fostering competition and affordability, discouraging new entrants and stifling innovation. Instead of supporting a competitive fintech ecosystem, the framework risks solidifying dominance by a few large incumbents. FDATA urges the government to accelerate the delivery of consumer-driven banking and reconsider its accreditation approach to ensure Canadians and SMEs benefit from the increased choice and innovation a true open finance framework can deliver. Read the full statement here.

Member News & Activity

ByAllAccounts published a blog, emphasizing the need to advance data sharing practices under the CFPB’s final Section 1033 rule to build a comprehensive open finance framework. While the rule is a significant milestone, its current scope creates disparities by excluding non-banking and credit card accounts. Wealth management, where accurate and complete data is essential for planning and advice, is particularly impacted. To address this, the financial industry must prioritize uniform account typing, provide full tax lot data, and establish consistent recognition of delegate authority through APIs. By evolving standards ahead of future regulation, consumers can fully and securely utilize their financial data across all account types.

Plaid‘s John Pitts, Head of Policy, was featured in Open Banker, sharing insights on effective policy advocacy. He emphasizes understanding the differing incentives between businesses and regulators, the importance of contextualizing new risks, and the advocate’s responsibility to clearly explain their position to policymakers. Pitts highlights the value of credibility, advocating for transparency about both benefits and flaws in a proposal to build trust. He also notes that meaningful relationships with policymakers are built on credibility and substance, not superficial connections, reinforcing the need for thoughtful and honest advocacy.

Plaid published a blog highlighting findings from a survey of over 200 bank executives. The post emphasizes the dual role of open banking as both a regulatory requirement and a strategic tool for innovation and customer engagement. While larger banks report higher confidence in meeting new regulatory requirements, regional and smaller institutions face challenges in readiness and digital adoption. Plaid underscores the importance of partnering with trusted providers to enhance compliance, leverage consumer-permissioned data, and drive transformative growth in the financial services industry.

MX posted a blog highlighting the release of Canada’s Consumer-Driven Banking Framework, aimed at enhancing financial safety, consumer protection, and competition in the financial services sector. Overseen by the Financial Consumer Agency of Canada (FCAC), the framework mandates accredited entities to securely access consumer-permissioned data and ensures strong privacy, security, and liability protections. Initially focused on major banks, it prohibits screen scraping and requires standardized APIs for data sharing. With full implementation targeted for early 2026, the framework aligns with global best practices while emphasizing consumer control and interoperability with the U.S. open banking standards.

Trustly was featured in The Paypers discussing how Open Banking is revolutionizing payments by offering faster, more secure, and cost-effective alternatives to traditional card networks. By enabling direct payments from bank accounts, Open Banking reduces transaction costs, improves conversion rates, and enhances security for merchants while giving consumers more choices, lower prices, and instant payment options. Trustly’s success stories, including partnerships with HMRC and PointsBet, demonstrate the transformative impact of Open Banking across industries. As a leader in the field, Trustly is committed to driving innovation and empowering businesses and consumers through its advanced Open Banking platform.

Events and Submission Deadlines

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