FDATA in the News

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.

The Biden administration can ensure the success of economic equality and financial inclusion by completing an initiative under the Consumer Financial Protection Bureau: enacting regulations to implement Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

As the bureau writes data-sharing rules, the third-party firms that work with fintechs say oversight by the agency would be more efficient – and better for consumers – than being policed by their bank partners.

The CFPB is seeking input on potential regulations for consumer access to electronic financial records through an advance notice of proposed rulemaking. Banks and fintech firms are closely watching.