Author: 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

• January 16, 2025: Comments due on the FDIC’s Recordkeeping Rule
• February 3-4, 2025: 6th Annual Fintech Retreat (North America), San Francisco, CA
• February 3-4, 2025: 5th Annual DeFi Retreat (North America), San Francisco, CA
• February 11-12, 2025: The 2nd Annual Fintech Risk & Compliance Forum, Oak Brook, IL
• February 24-25, 2025: Future Digital Finance, New Orleans, LA
• May 5, 2025: FDATA North America 2025 Summit, Washington, DC (information coming soon)

FDATA North America Monthly Newsletter for December 2024

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 Final Larger Participant Rule. On November 21, 2024, FDATA North America (FDATA) expressed disappointment with the Consumer Financial Protection Bureau’s (CFPB) final rule defining larger participants in the digital payment application market, criticizing its failure to distinguish between digital wallet providers that hold consumer assets and platforms that merely store other payment methods. Steve Boms, FDATA’s Executive Director, stated that while FDATA supports the CFPB’s efforts to enhance consumer protection and financial transparency, the inclusion of payment facilitators under the rule introduces significant compliance costs for non-bank platforms without delivering additional consumer benefits. Boms warned that this approach could stifle innovation, limit competition, and reduce the availability of low-cost, efficient payment options, urging the CFPB to reconsider its framework to better balance regulation with market innovation. Read the full statement here.

Member News & Activity

Codat was featured in Fintech Futures during Money20/20 USA 2024, where Chief Revenue Officer Joey Rault joined Jesse Schwarz, Executive Director of Fintech Partnerships at JP Morgan Chase, to discuss innovations in B2B payments. Their conversation highlighted trends in the B2B payments space, emphasizing how businesses can leverage new technologies to enhance control over their payment systems. They explored the advantages of real-time payments (RTP) over traditional methods like checks and shared best practices for modernizing tech stacks, including the benefits of automation and virtual cards.

Envestnet and Pontera published a press release announcing the integration of Envestnet’s BillFin solution with Pontera’s platform to streamline 401(k) account billing for financial advisors. This collaboration enables advisors to efficiently calculate fees, create invoices, and manage payments while offering seamless billing for workplace retirement account management.

Flinks published a blog analyzing the Consumer Financial Protection Bureau’s (CFPB) finalization of Section 1033, which mandates that financial institutions provide consumers with secure access to their financial data. The rule, finalized on October 22, 2024, aims to enhance competition, privacy, and innovation in financial services by empowering consumers to share their data with authorized third parties. Flinks emphasized that data providers must invest in compliance and technology to meet obligations such as secure API interfaces, adapt to increased competition, and leverage partnerships with fintechs to remain agile and customer-focused in this evolving financial landscape.

GoCardless published a press release announcing the expansion of its partnership with Aryza Group, a leading financial software provider, to integrate open banking-powered payment solutions into Aryza’s platform. As part of the agreement, Aryza will incorporate GoCardless’ Instant Bank Pay (IBP) feature into its Aryza Lend software in 2025, offering merchants an alternative to traditional card transactions and reducing associated costs.

MX‘s Chief Advocacy Officer and Head of Global Public Policy, Jane Barratt, critiqued the CFPB’s Section 1033 final rule in her Open Banker op-ed, highlighting potential disruptions from its annual reauthorization requirement for third-party financial data access. While acknowledging the intent to enhance security and control, she warned the rule risked breaking user experiences and stifling innovation. Barratt advocated for a risk-based, nuanced approach to reauthorization that balanced privacy protections with convenience to fulfill the promise of Open Banking.

Plaid partnered with Fintech Takes to break down key parts of the playbook for navigating the new landscape of open banking following the CFPB’s Section 1033 rule. The article highlights how the rule shifts open banking from a market-driven model to a regulated environment where all financial institutions must participate, fostering smoother consumer experiences and greater fairness in competition. Key takeaways include the mandate for APIs as the industry standard, requirements for data sharing and authorization, and the need for financial services companies to simultaneously act as data providers and recipients to thrive in this evolving ecosystem.

Trustly‘s Director of Regulatory and Public Affairs, Matt Janiga, critiqued government efforts to enhance competition in payments in his Open Banker op-ed, questioning whether actions like the CFPB’s Section 1033 rule and Visa antitrust suit will drive meaningful change. While acknowledging progress, Janiga argued that outdated regulations, entrenched gatekeeping by financial giants, and barriers to portability continue to stifle innovation and consumer choice. He called for modernizing outdated credit-debit distinctions, addressing antitrust issues in banking, improving data portability, and treating similar payment transactions consistently to truly promote a competitive and consumer-friendly payments ecosystem.

Events and Submission Deadlines

• December 10-11, 2024: 15th NextGen Payments & RegTech Forum, Austin, Texas
• January 16, 2025: Comments due on the FDIC’s Recordkeeping Rule

FDATA North America Monthly Newsletter for November 2024

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 Submits Comments to the Prudential Regulators’ RFI on Bank-Fintech Partnerships. On October 16, 2024, the Financial Data and Technology Association of North America (FDATA North America) submitted a comment to the Office of the Comptroller of the Currency (“OCC”), the Federal Reserve (“Fed”), and the Federal Deposit Insurance Corporation (“FDIC”; collectively, “the agencies”) in response to their Request for Information (“RFI”) on bank-fintech partnerships. FDATA expressed concern that the RFI did not adequately capture the variety of these collaborations and emphasized the benefits they bring to consumers, small businesses, and the financial marketplace, such as increased competition, reduced costs, and improved access to financial services. FDATA urged the agencies to defer oversight of consumer-permissioned data access to the CFPB, pending the finalization of its Personal Financial Data Rights rule, and allow for its full assessment before considering further regulatory action. FDATA released a statement on its submission of the letter, which can be found here.

FDATA North America Submits Comments on FDX’s Application for SSB Recognition Under Section 1033. On October 16, 2024, the Financial Data and Technology Association of North America (FDATA North America) submitted a submitted a comment in response to the Financial Data Exchange’s (“FDX”) application for recognition by the Consumer Financial Protection Bureau (“CFPB”) as a standard-setting body (“SSB”) under Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. In its letter, FDATA commended FDX’s efforts to enhance transparency and governance, ensuring representation from diverse stakeholders, including smaller entities and non-banks. FDATA urged the CFPB to require that recognized standard-setting bodies allow smaller participants to review existing technical standards, promoting balanced representation in the open finance ecosystem. They also expressed eagerness to collaborate with FDX in advancing secure, consumer-permissioned data sharing. FDATA released a statement on its submission of the letter, which can be found here.

FDATA North America Applauds The CFPB’s Final Personal Financial Data Rights Rule. On October 22, 2024, the Financial Data and Technology Association of North America (FDATA North America) applauded the CFPB’s release of its final rule under Section 1033 of the Dodd-Frank Act, which grants consumers the right to access and control their financial data. FDATA celebrated the rule as a pivotal step toward a more consumer-focused and competitive financial services landscape, though it expressed disappointment over the exclusion of Electronic Benefit Transfer (EBT) data and urged for its future inclusion. Member companies like Betterment and Plaid voiced strong support, underscoring the rule’s potential to enhance financial access and spur innovation, while some, such as Trustly, raised concerns about provisions on reauthorization and tokenized account numbers. FDATA released a statement on the release of the final CFPB rule, which can be found here.

FDATA North America Submits Additional Comments to CFPB on FDX’s Application for SSB Recognition. On October 22, 2024, the Financial Data and Technology Association of North America (FDATA North America) submitted additional comments to the CFPB, urging a thorough review of the Financial Data Exchange’s (FDX) application for recognition as a standard-setting body. In light of recent litigation by the Bank Policy Institute (BPI) challenging the CFPB’s authority, FDATA highlighted potential conflicts of interest due to overlapping board memberships between FDX and BPI. FDATA also noted that FDX has advocated for the CFPB to establish standards for API performance, data breach liability, and technical certifications—roles not included in the CFPB’s final rule—and called for further examination of FDX’s capacity to independently manage these functions. FDATA released a statement on its submission of the letter, which can be found here.

Member News & Activity

FDATA North America was featured in The Paypers article, where Steve Boms, Executive Director of FDATA North America, discussed the CFPB’s new rule on consumer financial data. The rule enhances privacy protections by mandating explicit consumer consent for data usage and limiting it to specified purposes, with a 12-month expiration on authorizations. This regulation aims to strengthen Open Banking in the U.S., fostering competition, transparency, and better consumer access, while also setting a phased compliance timeline that extends to 2030 for smaller institutions.

FDATA North America was also featured in American Banker article, with Executive Director Steve Boms quoted expressing strong support for the CFPB’s new open banking rule, emphasizing its importance in giving consumers control over their financial data and enabling them to choose providers that best meet their needs. Despite this support, Boms voiced disappointment that Electronic Benefit Transfer (EBT) data was excluded from the scope of the rule, highlighting a missed opportunity to broaden financial inclusion.

ByAllAccounts published a blog highlighting the latest “tricks and treats” in financial data sharing this Halloween season. Among the treats, the CFPB’s new Personal Financial Data Rights rule brings clarity and uniformity to data access, empowering consumers and advisors alike. However, the Department of Education’s STOP Act implementation is seen as more of a “trick,” restricting advisor access to critical student loan data. Fidelity’s recent screen-scraping ban, viewed as either a trick or treat depending on perspective, seeks to bolster data security but also disrupts some advisor workflows.

GoCardless published a report exploring the trajectory of open banking payments in the UK, noting significant growth in adoption due to benefits like reduced costs, faster transaction speeds, and stronger security. The report outlines that while some sectors are adopting open banking payments rapidly, there are key barriers, including the need for consistent API standards, low consumer awareness, and limited integration with in-person payment systems. To reach mainstream adoption, the report recommends industry cooperation and regulatory support to address these challenges and expand open banking payment use cases across more sectors.

Inverite published a release announcing rapid growth through its partnership with Mortgage Automator, with over 90 mortgage lenders now utilizing Inverite’s open banking platform. This integration allows lenders to leverage Inverite’s real-time financial data, AI-driven risk scoring, and compliance solutions, streamlining mortgage processing while enhancing decision-making and fraud prevention. CEO Karim Nanji emphasized the significant demand for Inverite’s data solutions in the mortgage sector, highlighting improved compliance and faster, more accurate service. Mortgage Automator also praised the partnership, noting that Inverite’s technology aids lenders in meeting regulatory requirements and delivering a competitive edge in the mortgage industry.

MX’s Jane Barratt shared how technology can empower consumers financially and highlighted future trends she’s excited about on  The C-Suite Podcast at Money 2020. She emphasized the importance of the CFPB’s new data-sharing rule under Section 1033, which enables consumers to securely access and share their data, fostering a more competitive and privacy-focused financial landscape. Jane noted the transformative potential of AI in personalizing financial services but stressed that data quality remains key to unlocking AI’s full benefits. She also discussed the need for financial systems to adapt to changing income patterns, where tools can help individuals manage irregular cash flows effectively.

Plaid published a release celebrating the CFPB’s final rule under Section 1033, which affirms consumers’ rights to access and control their financial data, moving the U.S. closer to an open finance future. The release highlights Plaid’s commitment to supporting financial institutions and consumers through compliance tools that align with the new rule, including solutions for authorization, data management, and risk control. Plaid’s FDX-aligned Open Finance Solution suite, which aids institutions in transitioning to secure API connectivity, is also emphasized as part of its dedication to consumer transparency and choice in financial services.

Pontera and Envestnet were highlighted in a PR Newswire article announcing their integration to streamline 401(k) account billing for financial advisors. Pontera’s platform now includes access to Envestnet’s BillFin solution, which simplifies fee calculation, invoicing, and billing setup for advisors managing workplace retirement accounts. This integration aims to enhance the client experience by providing efficient, secure, and compliant billing processes, further empowering advisors to deliver comprehensive retirement management services.

Trustly, Inc. was awarded an InfoSec patent for its proprietary split-token authentication technology earlier this month. This technology enables users to be authenticated without their sensitive information being stored all in one place, substantially reducing the risk of fraud. More information about the patent can be found here.

Events and Submission Deadlines

• November 18-19, 2024: Banking Transformation Summit, Charlotte, North Carolina
• November 19-21, 2024: CrossTech World 2024 Fintech Conference, Hollywood, Florida
• December 2, 2024: Comments due on the FDIC’s Recordkeeping Rule
• December 10-11, 2024: 15th NextGen Payments & RegTech Forum, Austin, Texas