On the Eve of Open Banking Regulations, Collaborative Industry Group is Stepping Up

RESTON, Va., Sept. 23, 2024 (GLOBE NEWSWIRE) -- As the Consumer Financial Protection Bureau (CFPB) readies to issue new “Open Banking” regulations next month, the financial services industry has been busy getting ready. The Financial Data Exchange (FDX)—an industry standards body focused on Open Banking—announced today significant changes as it prepares to play a bigger role in the industry.

The FDX Board has approved plans to grow its staff and today is announcing Kevin Feltes as its new Chief Executive Officer, effective November 2024. FDX also finalized an application to the CFPB for formal recognition as a standards setting body, a role that will lend additional weight to the standards FDX issues. These changes add to organizational reforms FDX has been implementing this year to help it become even more balanced and inclusive of diverse stakeholders. Today, FDX’s members include consumer advocacy groups, banks, fintechs, data aggregators, and other stakeholders.

FDX Board Co-Chairs Steve Smith from Mastercard and Franklin Garrigues from TD Bank said jointly, “Today’s announcement includes some of the most meaningful changes at FDX since the organization was founded. These moves are the culmination of more than a year of work to ready FDX for the significant role it seeks to play alongside regulations in the U.S. and Canada.”

New “Open Banking” regulations are expected from the CFPB next month and from the Department of Finance in Canada next year. These rules will impact over 100 million consumers and will require thousands of businesses to change how they share or collect consumer-permissioned data. Unlike in other countries, though, the CFPB is taking a novel approach to technical standards. Where other governments have given a larger role to regulatory bodies to define the technical details of how data sharing works, the CFPB has invited industry-led bodies to step up and take a bigger role. The financial industry is coming together at FDX to meet the call.

Kevin Feltes Appointed FDX CEO

FDX has appointed Kevin Feltes as its new Chief Executive Officer effective November 2024. Feltes, an industry veteran with extensive experience in Open Finance, will lead FDX in its mission to unify the financial industry around a common standard for secure and convenient access to permissioned consumer and business financial data. Feltes joins FDX from JPMorganChase where he recently served as the Head of Partnerships and Strategy for the Connected Banking group and as an FDX Board member.

“I am thrilled to lead this organization in its next phase of growth,” said Feltes. “FDX has achieved great success already in building consensus standards and a strong community of diverse organizations. I look forward to working with members to expand FDX’s impact and create win-win solutions that make it easier for firms to reduce costs, comply with regulations, and delight and protect their customers.”

Feltes has worked closely with data aggregators, fintechs, banks, regulators, and consumer groups to promote safer consumer data sharing and has been deeply involved in planning for the upcoming data sharing regulations.

“Kevin’s work on the FDX Board has been critical to advancing open banking in the U.S. and Canada,” said FDX Board Member and Head of Policy for Plaid, John Pitts. “As FDX’s first CEO, Kevin will help drive the organization's growth and progress toward ensuring that the financial services industry gives consumers the full benefit of control over their financial data.”

Don Cardinal, FDX’s Managing Director, will continue with the organization and work with Feltes to serve FDX’s membership of over 200 firms. 

FDX Finalizes Application for Formal Recognition by the CFPB

FDX also finalized an application to the CFPB for official recognition as a standard-setting body (in accordance with the CFPB’s Required Rulemaking on Personal Financial Data Rights; Industry Standard-Setting ). FDX’s application will describe how FDX’s governance, structure and ecosystem representation reflect the attributes the CFPB will require of a standard-setting body, including openness, balance, due process, appeals, consensus, and transparency.

“As the leading technical standards body for sharing permissioned financial data in North America, FDX shares the CFPB’s goal for a fair, open, and inclusive technical standards body and we are excited to submit this application,” added Smith and Garrigues.

FDX’s application as a standard-setting body will be to define an industry standard “data format.” Today, FDX’s full API specification covers numerous technical components, account types, and data elements, some of which extend beyond what has been proposed for the CFPB’s 1033 rulemaking. FDX and its diverse membership have made significant progress transitioning from credential-based “screen scraping” to the FDX API, with over 94 million consumer accounts now using the FDX API in North America.

About FDX
Financial Data Exchange (FDX) is a non-profit organization operating in the US and Canada that is dedicated to unifying the financial industry around a common, interoperable, royalty-free standard for secure and convenient consumer and business access to their financial data. FDX empowers users through its commitment to the development, growth, and industry-wide adoption of the FDX API, according to the principles of control, access, transparency, traceability, and security. Membership is open to all interested parties in the financial data sharing ecosystem. For more information and to join, visitfinancialdataexchange.org. 

Contact:
Porche Matthews
Marketing Manager
pmatthews@financialdataexchange.org