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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

• 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
• March 7, 2025: Fair Credit Reporting Act (Regulation V); Identity Theft and Coerced Debt Comment Letter Due Date
• May 5, 2025: FDATA 2025 Open Finance Summit, Washington, DC
  • Join us at the FDATA 2025 Open Finance Summit, where key policymakers, regulators, and industry leaders will convene to discuss the state of open finance and payment modernization, and share insights and lessons learned from around the globe.
  • Reserve your hotel room here; Rate Code: G-FDA3; Room Cutoff Date: April 4, 2025.
  • Want more information on sponsorship opportunities? Interested in speaking? Have questions? Contact: [email protected]

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