WHAT: Don Cardinal, managing director of The Financial Data Exchange (“FDX”), the financial industry consortium that is developing and implementing a secure financial data sharing standard to protect consumer banking information, will testify this Thursday before the U.S. House Committee on Financial Services Task Force on Financial Technology as it examines the role of big data in financial services.
Widespread use of financial technology (“FinTech”) applications has made financial data privacy a hot topic in the financial services industry. On Thursday Cardinal will report on the status of consumer-permissioned data and its impact on individuals’, families’ and organizations’ ability to utilize a wide range of online financial tools. The FDX managing director will enlighten the Committee and the public about technologies and standards that are in play by banks, FinTech companies and other financial services providers to enable secure permissioning of financial data by consumers.
WHEN: Thursday, November 21 at 9:30AM ET
WHERE: Rayburn House Office Building (RHOB), Room 2128, Washington, DC
WATCH: The hearing will be streamed live here.
CONTACT: To interview Don Cardinal, please contact Philipp Jago, [email protected], 212-943-5858
ACCESS: Don Cardinal’s testimony is available here.
BACKGROUND:
The Financial Data Exchange (FDX) is moving financial services providers away from the traditional practice of screen scraping, which shares user credentials with unlimited access to the financial data available, toward adoption of an industry standard – the FDX API. The FDX API allows for users of online financial applications to be securely authenticated without the sharing or storing of their login credentials with third parties. A rapidly expanding universe of banks, online financial services providers and app developers have agreed to use the FDX API, giving consumers the ability to allow access to specific, limited data for the chosen services. Through broad adoption of the FDX API, screen scraping will eventually cease while the flow of user permissioned data will encounter less friction yet be more secure and reliable than ever.
ABOUT THE FINANCIAL DATA EXCHANGE (FDX):
FDX was formed a year ago as non-profit industry-led collaboration among financial institutions, fintech companies, financial data aggregators, industry organizations, consumer advocacy groups and permissioned users of consumer financial data. The mission of FDX is to unify the financial industry around a common, interoperable and royalty-free standard for secure and convenient consumer and business access to their financial data. This standard – the FDX API -- allows consumers to knowingly, securely and conveniently share their financial data with fintech apps and other financial technology services.
The Financial Data Exchange is guided by five core principles when consumers and businesses share and utilize their own financial data: Control, Access, Transparency, Traceability and Security. Learn more about The FDX Five Core Principles of Financial Data Sharing in the recently-published white paper.
FDX is an independent subsidiary of FS-ISAC.