U.S. Begins Developing Open Banking Standards

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Coinspaidmedia2025/01/14 18:44

By:Coinspaidmedia

A U.S. regulator appointed the first organization responsible for developing standards in the field of open banking.

U.S. Begins Developing Open Banking Standards image 0

The Consumer Financial Protection Bureau (CFPB) designated the non-profit Financial Data Exchange (FDX) as the body responsible for creating open banking standards in compliance with updated rules on personal financial data rights.

The updated rules mandate that financial institutions, credit card issuers, and other financial service providers must, upon request, unlock personal financial data and transfer it to another service provider free of charge. FDX will be the first organization authorized to establish industry standards for financial data sharing.

Financial Data Exchange is a non-profit organization comprising over 200 member entities, including commercial financial, technology, and industrial companies, as well as non-profit associations and consumer advocacy groups. FDX specializes in setting standards across various industries in the U.S. and Canada, aiming to standardize rules for secure consumer and business access to financial data.

FDX was granted a five-year mandate to develop open banking standards in the U.S.

Open banking allows users, with their consent, to share their financial data via open APIs, enabling third-party developers to create financial services and applications. Open banking technologies represent one of the key trends in the FinTech industry for 2025.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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