FDATA in the News

The [Advisory Committee report] recommendations land at a time when other countries have already blazed ahead, and Canadian fintechs say they are losing opportunities to innovate in the financial industry

The [Executive] order urges the CFPB to commence a rulemaking under section 1033 to facilitate the portability of consumer financial transaction data so consumers can more easily switch financial institutions and use new, innovative financial products.

“We’ve been lagging behind many, many other developed countries. What this means is the era of open finance in the United States has begun in earnest – finally” stated FDATA North America Executive Director Steve Boms.

As Canada spins its wheels, other countries have already started implementing new regulations – and are seeing their fintech sectors expand, creating jobs in the process.

“Without open banking, consumers have no choice. They are entirely beholden to the financial institutions who control their data. In an open banking environment, consumers and small businesses have the right to use the service providers they choose.”

“The longer we wait to get moving, the more the opportunity cost,” said Steve Boms, executive director of the Financial Data and Technology Association (FDATA) of North America.

“If there is no movement this year in Canada on a regulatory framework, and no further commitments in the budget, large financial institutions will keep controlling the banking system, and opportunities will be lost,” said FDATA North America’s Steve Boms.

Fintech trading app Robinhood was at the center of the GameStop controversy that Congress is investigating. But a too-heated response from Congress could undermine access to affordable financial tools.

FDATA North America Executive Director Steve Boms noted that open finance maximizes the potential of fintech to improve financial access and inclusion, and the new members will be important allies in this effort.