FDATA North America February 2025 Newsletter

by rebecca

FDATA North America Monthly Newsletter for February 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 Urges Minister LeBlanc to Implement Canada’s Consumer-Driven Finance Framework. On January 16, 2025, the Financial Data and Technology Association of North America (FDATA) sent a letter to The Hon. Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs, urging him to prioritize the long-delayed implementation of Canada’s consumer-driven finance framework. FDATA North America emphasized the urgent need to establish an open finance regime that fosters affordability, competition, and improved consumer access to financial services, noting that Canadians still lack these benefits seven years after the government first announced its intention in Budget 2018. The letter highlighted how granting consumers control over their financial data would help address barriers created by Canada’s highly concentrated financial sector, where high fees, limited credit access, and slow transaction settlement times are common challenges. With Minister LeBlanc being the third finance minister with the opportunity to deliver a consumer-centric ecosystem, FDATA North America urged him to advance this initiative and reaffirmed its readiness to provide data, insights, and support. A full copy of the letter is available here. Read the full release here.

Member News & Activity

GoCardless was featured in Fintech Futures, where Pat Phelan, Chief Customer Officer and Managing Director of UKI, GoCardless, highlighted the advantages of being an early adopter of payment technology. While open banking payments in the UK now exceed 22 million per month, they are still years away from becoming mainstream. Drawing parallels to the decades-long evolution of credit cards, Phelan emphasized that adopting new payment technology early can provide businesses with a competitive edge, improved efficiency, and better financial visibility. GoCardless’ research with 11:FS found that businesses using open banking reported faster payments (48%), reduced fraud (35%), and lower payment management costs (33%). Beyond these benefits, early adopters position themselves as market leaders, enhance customer acquisition and retention, and gain a critical learning curve advantage—potentially shaping the development of new financial products.

Method was featured in TechCrunch for its role in helping fintech companies like SoFi integrate repayment functionality into their apps. By leveraging consumer credit access protections from the Dodd-Frank Act, Method aggregates users’ debts and enables balance transfers, bill payments, and payoffs through a seamless API that requires only a phone number. With over 30 million account connections and $500 million in liability repayments facilitated, the company recently raised a $41.5 million Series B to expand its banking partnerships and credit card integrations, aiming to enhance the user experience and increase conversion for fintechs.

MX published a blog highlighting how Open Banking is becoming a key competitive advantage for financial institutions, with new research showing that 55% of U.S. consumers would share more financial data in exchange for a better experience—up from 46% in May 2024. With new regulations like the CFPB’s Section 1033 ruling and Canada’s consumer-driven banking framework solidifying data ownership and privacy rights, institutions that embrace Open Banking can gain deeper insights, personalize offerings, and stay ahead of the competition. While some may delay adoption due to regulatory uncertainties, MX emphasizes that early adopters will be better positioned to succeed in 2025, while those who wait risk falling behind.

Ozone API published a blog celebrating the Consumer Financial Protection Bureau’s (CFPB) official designation of Financial Data Exchange (FDX) as a Standards Setting Body on January 8, 2025, marking a major milestone for open banking in the United States. With over 94 million U.S. accounts already using the FDX API, this move solidifies a regulated framework under Section 1033 and positions the U.S. as a leader in financial data access and security. Industry leaders, including Don Cardinal of FDX and Eyal Sivan of Ozone API, emphasized that this recognition removes uncertainty, allowing data providers to move forward with confidence in building secure, interoperable financial APIs. Ozone API also provided key resources to help financial institutions navigate Section 1033, including technical guides, security insights, and expert discussions on open banking implementation.

Pontera posted a blog highlighting the disparities in retirement savings, particularly among women, people of color, and individuals with lower educational attainment, emphasizing the systemic barriers that prevent equal access to financial security. The blog underscores the need for personalized financial guidance, expanded access to employer-sponsored plans, and increased financial literacy to help close the retirement gap. Advisors can play a crucial role by educating underserved communities, advocating for equal pay and workplace opportunities, and leveraging resources like the DOL’s lost and found retirement account database to ensure more equitable financial outcomes.

Events and Submission Deadlines

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