FDATA in the News

The [US] CFPB plans to have a data-sharing rule in place by April 2022. But Canadian report observers have shed much more on what an open banking regime would look like than the Bureau’s request for comment issued last fall, and could influence rulemaking in both countries.

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.