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FDATA North America Statement on the CFPB’s Final Larger Participant Rule

Contact: Laine Williams, (202) 897-4757,  [email protected] 

Washington, DC, November 21, 2024 – The Financial Data and Technology Association of North America (FDATA), a trade association representing more than three dozen financial technology and open finance companies, today expressed disappointment with the Consumer Financial Protection Bureau’s (“CFPB” or “Bureau”) final Rule Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications, which failed to differentiate between digital wallet providers that hold consumer assets and platforms that merely store other payment methods.

Steve Boms, Executive Director of FDATA, released the following statement:

“While FDATA supports the Bureau’s efforts to enhance consumer protection and promote financial transparency, we are disappointed that the CFPB failed to appropriately tailor its payments larger participant rule to capture only those digital wallets that actually hold consumer funds. The Bureau’s decision to include payment facilitators as covered entities under the LPR, despite the U.S. District Court’s ruling in PayPal v. CFPB, introduces significant additional compliance costs to a host of non-bank payment platforms without offering additional commensurate consumer benefits.

We are concerned that today’s rule could limit competition in the payments marketplace, where digital platforms have offered low-cost, efficient pay-by-bank options that reduce transaction fees. Subjecting these entities to the same regulatory requirements as digital wallets that actually hold consumer funds could stifle innovation and reduce the availability of more affordable payment options. We look forward to continuing to work with the CFPB on this important issue.”

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FDATA North America November Newsletter

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

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FDATA North America Submits Additional Comments to CFPB on FDX’s Application for SSB Recognition

Contact: Laine Williams, (202) 897-4757,  [email protected] 

Washington, DC, October 28, 2024 – The Financial Data and Technology Association of North America (“FDATA North America”), a trade association representing more than three dozen financial technology and open finance companies, today submitted additional comments to the Consumer Financial Protection Bureau (“CFPB” or “the Bureau”) requesting a careful and comprehensive review of the Financial Data Exchange’s (“FDX”) application for recognition as a standard-setting body (“SSB”) following the Bureau’s finalization of its Personal Financial Data Rights rulemaking last week and litigation filed by the Bank Policy Institute (“BPI”), challenging the Bureau’s statutory authority to do so.

FDATA North America’s additional comments raised additional considerations for assessing potential conflicts of interest in FDX’s governance, noting that eight BPI board members are also FDX board members.

In the letter, FDATA North America also stressed that FDX has previously advocated for the CFPB to oversee key areas, such as setting API performance metrics, creating data breach liability frameworks, and establishing technical certification standards. With these functions absent from the CFPB’s final Section 1033 rule, FDATA North America called for additional scrutiny of FDX’s ability to fulfill these roles effectively and independently.

A full copy of the letter is available here.

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FDATA North America Applauds The CFPB’s Final Personal Financial Data Rights Rule

Contact: Laine Williams, (202) 897-4757,  [email protected] 

Washington, DC, October 22, 2024 – The Financial Data and Technology Association of North America (“FDATA North America”), a trade association representing more than three dozen financial technology and open finance companies, today celebrated the release of the Consumer Financial Protection Bureau’s (“CFPB”) final rule implementing Section 1033 of the Dodd-Frank Act.

Steve Boms, Executive Director of FDATA North America, released the following statement:

“The CFPB’s final Section 1033 rule marks a pivotal moment for millions of consumers across the country, who, for the first time, have a legally binding right to access and share access to their financial data. We applaud the final rule, which puts consumers in control of their financial data, allowing them to select the financial provider that best meets their needs. Today’s final rule does more than fulfill a long-standing need—it redefines the future of financial services in the United States, setting the stage for a more competitive, transparent, affordable, and consumer-focused marketplace for generations to come.

We look forward to continuing to work with the CFPB and with stakeholders from throughout the financial services ecosystem to expand the framework the Bureau finalized today to include additional accounts over time, facilitating a true open finance system in the United States.”

Though highly supportive of the CFPB rulemaking, FDATA North America expressed disappointment that Electronic Benefit Transfer (“EBT”) data was excluded from the scope of data included under the final rule, and urged the CFPB to include EBT data in future iterative rules to address this gap and extend the benefits of open finance to lower-income individuals.

A number of FDATA North America member companies also provided statements in response to the CFPB’s final Section 1033 rulemaking:

Betterment provided the following statement:

“Betterment joins FDATA in applauding the CFPB for its final rule on Section 1033 of the Dodd-Frank Act, which secures Americans’ right to control their financial data. This rulemaking is an important step in expanding access to innovative and affordable financial services, including digital investment advice. We look forward to working with FDATA, the CFPB, and other stakeholders to implement and expand the rule to encompass investment and retirement accounts, which will help to more fully realize the promise of Section 1033.”

Brian Costello, Head of ByAllAccounts Data Aggregation Strategy & Governance, Morningstar Wealth, stated:

“Congratulations to the CFPB on the momentous milestone of publishing the final Personal Financial Data Rights Rule enacting Dodd-Frank 1033 Rule. U.S. consumers now have a legally-binding right to electronically share their own financial data with third-party financial services providers of their choice. ByAllAccounts looks forward to working with the Bureau to expand the covered accounts within the Rule to also include brokerage, retirement, and annuity accounts as outlined in our comment letter to the CFPB.”

Jason Rosen, Founder & CEO, Prism Data, stated:

“This is a transformational moment for financial services in the United States. By putting consumers in control of their personal financial data, the CFPB’s new rule will spur greater innovation and competition among financial providers and expand consumer access to safe financial products on better terms. And consumers aren’t the only winners: banks and lenders can now gain a significantly more comprehensive and accurate picture of their customers’ financial lives, unlocking opportunities to serve more people and better manage risk.”

John Pitts, Head of Policy, Plaid provided the following statement:

“Since day one, Plaid has sought to make it easy for consumers to securely access and share their financial data with the services that work best for them. Today’s announcement from the CFPB reaffirms that open banking in the U.S. benefits consumers, promotes a healthy financial services marketplace, and should be protected by law. The 1033 rule will usher in a new, more consumer-centric chapter of financial services in the U.S. and accelerate competition in payments, more inclusive access to credit, enable more advanced fraud fighting tools, and other innovations that benefit consumers. We look forward to this next era of open finance.”

Jane Barratt, Chief Advocacy Officer, MX, provided the following statement:

“For more than a decade, MX has been a leader in open finance and consumer-permissioned data sharing. We look forward to continuing to lead with privacy-first principles and ensuring our clients can meet these new compliance obligations and leverage consumer-permissioned data effectively and ethically.”

Alexandre Gonthier, Founder and CEO of Trustly, Inc., stated:

“Trustly, Inc. commends the CFPB on the release of its final rule for section 1033 of the Dodd-Frank Act, which helps solidify Open Banking by putting consumers in control of their financial data.  However, the rule fails to match Director Chopra’s lofty rhetoric on encouraging competition in payments and supporting pay-by-bank.

We were hopeful the CFPB would reconsider its proposal to allow tokenized account numbers (TANs) to be used in place of the consumer’s ACH account and routing numbers and are concerned by the final rule’s stance. Our position has been clear from the beginning – we’ve seen TANs serve as a new tool for fraudsters rather than safeguarding consumer information as intended. Additionally, we are disappointed by the CFPB’s final rule regarding the reauthorization of data sharing by consumers every 12 months. Consumers want to eliminate the friction in the payment process, and the final rule misses the mark in this area.”

Mit Shah, Co-Founder & COO, Method Financial, stated:

Method Financial applauds the CPFB for delivering a rulemaking that codifies the promise of Open Banking. Consumer financial health has been put front and center, with consumers able to access and share their financial data in pursuit of the most competitive financial products. Method appreciates the CFPB’s efforts to ensure that all consumers are able to access the benefits of Open Banking and to provide a clear standard for all financial institutions and data aggregators that serve them.

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FDATA North America Submits Comments on FDX’s Application for SSB Recognition Under Section 1033

Contact: Laine Williams, (202) 897-4757,  [email protected] 

Washington, DC, October 16, 2024 – The Financial Data and Technology Association of North America (“FDATA North America”), a trade association representing more than three dozen financial technology and open finance companies, today 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. The recognition of SSBs, defined under the CFPB’s final rule issued on June 5, 2024, is pivotal in the context of the Bureau’s forthcoming personal financial data rights rule.

In the letter, FDATA North America applauded FDX’s efforts to institute additional transparency, balance as it promulgates technology standards to enable safe and secure consumer-permissioned data sharing across the financial ecosystem. We emphasized that FDX’s proposed improvements to their governance structure will ensure broader representation of various stakeholders, including smaller entities and non-banks, across its decision-making processes and expressed our members’ eagerness to contribute to FDX’s important work.

FDATA North America also urged the CFPB to require that applicants for SSB recognition establish mechanisms that allow smaller market participants to review and provide input on existing technical standards promulgated prior to an entity’s application to the CFPB for recognition as an SSB. This approach would ensure that the CFPB’s commitment to balanced representation is reflected not only in future iterations to technology standards recognized under the CFPB’s Section 1033 rulemaking, but also to technology standards already in use in the ecosystem. Additionally, we emphasized that the success of the U.S. open finance ecosystem relies on balanced representation across all stakeholders to foster growth and innovation to benefit consumers.

FDATA North America expressed its appreciation for FDX’s commitment to supporting secure, consumer-permissioned data access and looks forward to continued collaboration to advance a robust and equitable standard-setting process.

A full copy of the letter is available here.

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FDATA North America Submits Comments to the Prudential Regulators’ RFI on Bank-Fintech Partnerships

Contact: Laine Williams, (202) 897-4757,  [email protected] 

Washington, DC, October 16, 2024 – The Financial Data and Technology Association of North America (“FDATA North America”), a consortium of more than 30 financial technology companies providing consumers and small- and medium-enterprises with innovative financial products, services, and tools, today submitted comments 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 arrangements involving banking products and services. In the letter, FDATA North America expressed concern that the agencies’ RFI failed to appropriately capture or distinguish among the breadth of bank-fintech relationships and encouraged the agencies to recognize the diverse benefits these collaborations bring to consumers, small businesses, and the broader financial marketplace.

FDATA North America highlighted that bank-fintech arrangements provide essential services beyond traditional banking, including personal financial management, lending, and payments, thereby fostering competition, reducing costs, and expanding access to financial services for underserved populations. In the letter, FDATA North America urged the agencies to defer oversight of consumer-permissioned data access arrangements to the Consumer Financial Protection Bureau (“CFPB”), given the imminent finalization of the CFPB’s Personal Financial Data Rights rule. FDATA North America suggested that the agencies allow time for a thorough assessment of the CFPB’s final rule for all bank-fintech arrangements before considering further regulatory action.

A full copy of the letter is available here.

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FDATA North America October Newsletter

FDATA North America Monthly Newsletter for October 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 Department of Finance’s Consultation on Budget 2024 Measures. On September 4, 2024, the Financial Data and Technology Association of North America (FDATA North America) submitted a comment in response to the Canadian Department of Finance’s consultation on Budget 2024 measures to promote fairness across generations. FDATA North America’s submission emphasized the need to explicitly include small and medium-sized enterprises (SMEs) in Canada’s open finance regime, advocated for a tiered accreditation approach to support smaller market entrants while maintaining data security, urged the Financial Consumer Agency of Canada (FCAC) to maintain a focused role within the open finance ecosystem, and called for liability to be assigned to the responsible entity in the event of data breaches to ensure proper consumer and SME protection. FDATA released a statement on its submission of the letter, which can be found here.

Member News & Activity

FDATA North America members MX and Prism Data were featured in an American Banker article discussing the impact of the CFPB’s proposed open banking rule. MX’s Jane Barratt emphasized that institutions providing the best customer experience will have a competitive edge, while Prism Data’s Jason Rosen noted that the rule aims to level the playing field, but small banks need a solid strategy to fully benefit.

Codat was featured in The Fintech Times article highlighting the hesitation of US mid-sized businesses to move away from paper cheques despite increasing fraud risks, with projected losses exceeding $24 billion by 2024. Codat’s head of commercial banking, Charles Kreitler, emphasized that banks need to effectively communicate the benefits of digital payments, as businesses are becoming more concerned with security and are open to switching if digital methods offer strong fraud protection.

Envestnet Yodlee published insights from industry leaders and regulators on the opportunities, challenges, and consumer benefits of Open Banking in South Africa. The discussion highlighted the evolving regulatory landscape, new business opportunities for financial institutions, and the empowerment of consumers with greater financial control. The webinar also addressed the technical and operational challenges in implementing Open Banking frameworks in the region, emphasizing the potential for innovation and inclusivity in the financial ecosystem.

Fiserv published an article discussing how financial institutions can prepare for the upcoming CFPB open banking rule under Section 1033 of the Dodd-Frank Act. The article suggests four key actions: mapping data elements within the institution, consolidating data for efficient access, understanding current data-transfer uses to evaluate costs and benefits of implementing developer interfaces, and embracing the opportunities that open banking can bring for enhancing products and services. Fiserv emphasizes that the rule presents possibilities for improved efficiency and customer engagement beyond regulatory compliance.

GoCardless published a blog highlighting their “Instant Bank Pay” solution, which uses open banking to provide instant, low-cost, bank-to-bank payments for one-off transactions. This feature aims to reduce transaction fees, improve security, and offer a better customer experience compared to traditional payment methods like cards and bank transfers.

MX was featured in a Fintech Takes article, which explored the future of the financial data economy. The piece highlighted how MX’s solutions, particularly their data access and customer analytics platforms, enable financial services providers to seamlessly link and verify financial accounts. By transforming consumer-permissioned data into actionable insights, MX helps institutions create a comprehensive view of core banking, aggregated, and open banking data, allowing them to better analyze, engage with, and act on this information.

Plaid started a series on “The Age of Open Finance” with John Pitts, Head of Policy at Plaid, titled “Becoming the center of your customers’ digital financial lives.” The episode discusses the upcoming CFPB open banking rule under Section 1033 of the Dodd-Frank Act and how it will require financial institutions to provide secure access to consumer financial data via APIs, or “developer interfaces.” Pitts and Meredith Fuchs, Plaid’s Chief Legal Officer, emphasize that while compliance is essential, the real opportunity lies in positioning financial institutions as the hub for their customers’ entire digital financial experience, offering seamless access to popular apps and services.

Events and Submission Deadlines

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Video Member Spotlight: Inverite

This member spotlight features FDATA NA Spotlight with Karim Nanji, Chief Executive Officer, Inverite. Karim discussed how Inverite’s AI-powered technology is transforming the financial landscape in Canada.

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FDATA North America Submits Comments to the Department of Finance’s Consultation on Budget 2024 Measures

Contact: Laine Williams, (202) 897-4757,  [email protected] 

September 4, 2024, Washington, DC – The Financial Data and Technology Association of North America (FDATA), a consortium of more than 30 financial technology companies providing consumers and small- and medium-enterprises with innovative financial products, services, and tools, today submitted a comment in response to the Canadian Department of Finance’s consultation on Budget 2024 measures to deliver fairness for every generation.

In our submission, we urged the Department of Finance to:

  1. Ensure All Small and Medium-Sized (“SME”) Accounts Are Included: It’s crucial that SMEs are explicitly included in the scope of Canada’s open finance regime, ensuring they can benefit from innovative financial solutions.
  2. Mitigate Barriers to Entry for Smaller Participants: We advocate for a tiered accreditation approach that balances rigorous data security requirements with the need to support smaller market entrants, fostering innovation and competition.
  3. Maintain a Focused FCAC Mandate: The Financial Consumer Agency of Canada (“FCAC”) should maintain a clear and manageable role within the open finance ecosystem, avoiding an overly broad expansion of responsibilities.
  4. Assign Liability to the Responsible Entity: Liability should rest with the entity responsible for any data breaches, ensuring that consumers and SMEs are protected and compensated fairly.

A full copy of the comment is available here.

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FDATA North America September Newsletter

FDATA North America Monthly Newsletter for September 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 CFPB’s Medical Debt Rule. On August 5, 2024, the Financial Data and Technology Association of North America (FDATA) submitted a comment in response to the Consumer Financial Protection Bureau’s (CFPB) proposed rule aimed at limiting creditors from using information on medical debts for credit eligibility determinations under the Fair Credit Reporting Act (FCRA). While FDATA North America did not take a position on the rule’s underlying merits, it raised significant operational concerns regarding the practical implementation of the rule for consumer-permissioned open banking platforms that function as Consumer Reporting Agencies (CRAs). FDATA North America emphasized that without a mandatory requirement for data providers to identify medical debts, the current lack of a uniform mechanism for open banking platforms to identify whether an account connected by a consumer is a medical debt presents a major compliance challenge. To comply effectively with the CFPB’s proposed rule, FDATA North America urged the Bureau to require lenders to affirmatively identify accounts as medical debts whenever consumers grant data access to third-party platforms. This requirement is crucial for ensuring that open banking platforms, regulated as CRAs, have access to the same account information available in the traditional CRA space. FDATA released a statement on its submission of the letter, which can be found here.

Member News & Activity

ByAllAccounts published a blog discussing how the rapidly evolving wealthtech landscape offers opportunities for financial advisors and wealth management firms, despite the challenges posed by a fragmented tech ecosystem. The ByAllAccounts Data Network provides a streamlined solution by simplifying data exchange and integration, allowing wealthtech platforms to focus on innovation and growth rather than the complexities of data management.

Flinks published a blog summarizing a live session on building an efficient payments strategy by balancing cost, risk, and conversion. The session highlighted the fragmented payments landscape in Canada and emphasized the importance of finding the right balance between these three pillars to optimize payments strategy, with insights on future trends and advancements in payment technologies.

MX published a blog emphasizing the importance of secondary use cases in consumer financial health, particularly in light of the CFPB’s upcoming rule under Section 1033. The blog highlights concerns from a bipartisan group of Congress members about the potential negative impacts of restricting secondary data use, including stifling innovation, limiting fraud prevention, and disadvantaging smaller institutions.

Plaid published a blog highlighting five ways its open banking platform simplifies international expansion between Europe and North America. The blog emphasizes Plaid’s consistent APIs, extensive financial institution coverage, regulatory compliance, localized support, and scalable infrastructure, all designed to help fintech companies efficiently navigate and succeed in new markets.

Pontera posted a blog emphasizing that market volatility provides an opportunity for financial advisors to actively manage clients’ retirement plans and investment portfolios. The blog highlights the importance of proactive management during uncertain times, particularly as the market is expected to fluctuate leading up to the presidential election, ensuring that clients stay focused on their long-term financial goals.

Propel announced that its app, Providers, has been rebranded to align with the company’s name, now both known as Propel. This rebrand marks a decade of growth and innovation, reflecting Propel’s ongoing mission to support low-income Americans with tools like the Propel Card, Benefits Hub, and Job Board, all while continuing to advocate for financial security and dignity for their users.

TransUnion published a blog announcing its partnership with Snowflake to launch TruIQ Data Enrichment on the Snowflake Marketplace, providing on-demand access to pseudonymized TransUnion credit data within the Snowflake AI Data Cloud. This partnership enables organizations to efficiently link credit data with first and third-party datasets, enhancing data-driven insights while maintaining data security and minimizing data movement across platforms.

Trustly’s Founder and CEO, Alexandre Gonthier, wrote an op-ed featured in the American Banker, where he expressed concerns about the CFPB’s proposed Section 1033 rule, particularly the inclusion of tokenized account numbers (TANs). Gonthier warned that TANs could create barriers for smaller financial institutions, increase fraud risks, and lead to consumer confusion. He urged the CFPB to reconsider the inclusion of TANs to protect competition, consumer choice, and the security of financial transactions.

ValidFi posted a blog discussing the challenge of balancing customer experience with fraud prevention in today’s competitive landscape. The blog emphasizes the importance of using layered fraud protection solutions while clearly communicating the benefits to customers, ensuring they feel secure and understand the value of sharing their personal information.

Events and Submission Deadlines

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