Financial Data and Technology Association’s submission to the HMT outlines options for data aggregation industry
The Financial Data and Technology Association (FDATA), the industry body for financial technology (fintech) companies which give consumers more control over their financial data, has submitted evidence to HM Treasury on its call for evidence on data sharing and open data in banking.
FDATA’s members – six of the leading companies in the industry – use security credentials shared by the user to aggregate their financial life in one place. Our members’ services include:
- aggregating savings and debts to create a holistic analysis of a consumer’s financial situation
- analysing whether it is more efficient to save or to pay off credit
- checking whether the savings or lending rate on a product can be bettered elsewhere
Welcoming the Treasury’s general approach on the issue, FDATA made the following points, amongst others, in its submission:
- the market for financial data aggregation is far more open and advanced in other countries, notably the US, than it is here in the UK
- the industry would benefit from the addition of standard and non-standard APIs to the market, in addition to the currently well-used screen-scraping technology
- financial institutions, technical providers and data aggregators need to agree with government and regulators a set of minimum industry standards for operating as an aggregator in an open data era
Commenting, FDATA director Andy Maciver said:
“Our members provide an incredibly valuable service to the personal and small business markets, allowing them to manage all their accounts, of different types and with different providers, in one place.
“It is a testament to the services our members provide that they have built a large customer base despite the environment for open data not yet being a friendly one. Ensuring that this market can operate to the fullest of its ability will provide an environment for a revolution in money management.
“The era of openness in financial data must now be ushered in. We want consumers to benefit from our members’ services and we want to be at the centre of a thriving new British fintech industry legitimised and underpinned by strict standards of practice.”