U.S. & Canada now lead the world in open banking and open finance API adoption through industry-led technical standards body
The Financial Data Exchange (FDX) today reported that 16 million North American consumers are now using its FDX API for open banking and open finance data sharing. This milestone solidifies the U.S. and Canada as the global leaders in open banking and open finance API adoption. Today’s updated adoption metrics represent growth of an additional 4 million consumers that have been transitioned from credential-based data sharing and screen scraping to the industry-led FDX API standards since FDX’s most recent adoption survey in late 2020.
“With FDX’s latest adoption metrics, the U.S. and Canadian financial data ecosystems are showing that FDX’s common, interoperable, industry-led and market-driven API standards are the quickest way to deliver secure and consumer-centric financial data sharing to the marketplace”
“With FDX’s latest adoption metrics, the U.S. and Canadian financial data ecosystems are showing that FDX’s common, interoperable, industry-led and market-driven API standards are the quickest way to deliver secure and consumer-centric financial data sharing to the marketplace,” said FDX Managing Director Don Cardinal.
FDX released version 4.5 of the FDX API in December and FDX now defines more than 500 individual financial data elements. As a result, consumers can use and share a wider range of their own financial data to ultimately benefit their financial lives. FDX’s Spring Release is planned for May 2021 when the organization is expected to provide additional updates to its standards.
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“The common narrative that the U.S. and Canada are somehow behind on open banking is just wrong,” said Cardinal. “Not only are FDX technical standards paving the way forward for rapid API adoption in North America that is outpacing the rest of the world, but FDX is evolving the notion of open banking. We have defined more than 500 financial data elements and continue to expand the FDX API’s scope based on consumer and market demand. This places us firmly in the realm of Open Finance,” added Cardinal.
The Open Banking Implementation Entity (OBIE) in the UK recently reported that over 3 million consumers are using its open banking API and other global jurisdictions are in various stages of developing and implementing regulations and standards on open banking and open finance.
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“Common, industry-led technical standards can’t solve every Open Finance friction point in the marketplace. However, when you bring the full financial industry ecosystem to the table together, you can solve a lot of problems. FDX is focused on the technical means and methods that allow consumers to securely permission and use their financial data, and for that objective, FDX is showing that common and interoperable technical standards developed by an industry consortium are the way forward,” said Cardinal.
FDX is comprised of 185 financial industry members and stakeholders and the FDX board includes Bank of America, Citi, Capital One, Envestnet | Yodlee, Experian, Fannie Mae, Fidelity, Finicity, Fiserv, FS-ISAC, Interac, Intuit, JPMorgan Chase, Plaid, PNC, Quicken Loans, Royal Bank of Canada, Schwab, SIFMA, TD Bank, The Clearing House, Truist, USAA, US Bank, Wells Fargo, Xero, and a rotating observer-level seat for consumer advocacy groups.
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