Month: March 2020

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FDATA North America Submits Letters to Canadian and U.S. Governments on the Importance of Fintech and Aggregation as the COVID-19 Pandemic Continues

FDATA North America Submits Letters to Canadian and U.S. Governments on Importance of Fintech and Aggregation as the COVID-19 Pandemic Continues

March 26, 2020, Washington, DC – Today, FDATA North America submitted letters to Canada’s Departments of Finance and Innovation, Science, and Industry (ISI) and United States’ Consumer Financial Protection Bureau (CFPB) that underscores the value that aggregation and fintech can provide to consumers and small businesses in both countries during the global health crisis. During the pandemic, FDATA members are actively helping their customers weather the financial storm and are looking to partner with the Canadian and U.S. governments as they search for and implement policies to address the economic implications of the pandemic.

In Canada, we ask Finance and ISI to recognize that access to data has never been more important to customers and to take action to eliminate the barriers to financial data access.
Image result for paperclip iconFDATA letter to Canada’s Departments of Finance and Innovation, Science, and Industry

In the United States, we ask the CFPB for recognition that fintech constitutes critical infrastructure in the financial services landscape for consumers and small businesses during the national emergency, as recent guidance from the federal government was geared much more towards traditional financial services providers.
Image result for paperclip iconFDATA letter to the United States’ Consumer Financial Protection Bureau


ABOUT FDATA NORTH AMERICA
FDATA was heavily involved in the UK Open Banking Working Group in 2015. In 2016, the working group’s output was published by Her Majesty’s Treasury as the Open Banking Standard. FDATA North America was founded in early 2018. Its members collectively provide tens of millions of consumers in Canada, the United States and Mexico with aggregation-based tools to better manage their finances. Existing FDATA North America members include: air (the Alliance for Innovative Regulation), Betterment, Envestnet Yodlee, FGS, Flinks, Intuit, Kabbage, Lendified, Mogo, Morningstsar, M Science, MX, Petal, Plaid, Questrade, Quicken Loans, Petal, Plaid, The ID Co., TransUnion, Trustly, VoPay, Wealthica and others.

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Member Spotlight: VoPay

VoPay: Democratizing Financial Services for Everyone

VoPay, whose mission is to digitize online bank account payments with speed, transparency and traceability, joined FDATA North America because it believes creating connections between financial institutions and global digital enterprises will “democratize financial services for everyone.”

If that sounds revolutionary, that’s because it is. What it means is that more people, including those previously absent from the traditional financial system, will be able to get loans, plan for retirement, or simply pay their bills online. Entrepreneurs and businesses will be better able to manage supply chains, or create new marketplaces.

VoPay already offers these options, but according to Philipp Postrehovsky, establishing open finance and open banking frameworks across North American will help ensure the company continues to offer payment solutions that provide the greatest level of value and security to its expanding ecosystem of next generation online payments.

While VoPay is committed to bringing financial technology solutions to more individuals and businesses, it also is dedicated to ensuring those solutions are secure. For example, in order to lessen the risk of fraud and identity theft, VoPay generates and shares a “token” between a consumer and a merchant. Because that token is unique, it is not usable for any other transaction. A traditional financial institution might share a consumer’s bank account information—numbers that, even when encrypted—are far less secure.

Information is important in a democracy, and another thing we—and policymakers and the media—love about VoPay is that the company works diligently to help individuals who wouldn’t know the difference between APIs and tokens if you offered them a million (Canadian!) dollars understand how the ecosystem works. Their blog and monthly newsletter are must reads for anyone struggling to understand the rapidly-changing fintech space and how it will be benefit consumers.

Check it out here. Understanding the prospect, and promise, of open banking and open finance will be a lot easier when you do.

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