CFPB Approves FDX as First Standard-Setting Body for Open Banking

This post was originally published on The FinTech Times

The Consumer Financial Protection Bureau (CFPB) has approved the Financial Data Exchange (FDX) as the first standard-setting body in an important step towards implementing open banking in the US.

Released in October 2024, the Personal Financial Data Rights rule requires financial institutions, credit card issuers, and other financial providers to unlock a consumer’s personal financial data and transfer it to another provider at their request for free.

At the time, the CFPB established an application process that outlined the required qualifications to become a recognised industry standard-setting body. These standards can help companies to comply with the CFPB’s new open banking rules.

FDX, a standard-setting organisation operating in the US and Canada with over 200 member organisations, aims to develop, improve and maintain a common, interoperable standard for secure consumer and business access to financial records. Having begun the application process in September 2024, CFPB will now recognise FDX as an industry standard-setting body for five years.

Following the approval, FDX has agreed to self-monitor its policies and practices to ensure that it meets the requirements outlined by CFPB.

Subject to conditions

The CFPB approved the FDX’s application, subject to a number of conditions, including a ban on ‘pay-to-play’, which aims to ensure that FDX develops

Read the rest of this post, which was originally published on The FinTech Times.

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