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FDX applies to be recognised as standards-setting body by CFPB

Ellie Duncan
24 Sep 2024

US-based Financial Data Exchange (FDX) has finalised its application to the Consumer Financial Protection Bureau (CFPB) to become formally recognised as a standards-setting body, ahead of incoming Open Banking regulation.

FDX is working to unify the financial industry in the US and Canada around a common, interoperable, royalty-free standard to enable consumers and businesses access to their financial data.

In June, the CFPB outlined the attributes required to become a recognised Open Banking standard-setting body in the US.

Those organisations that become recognised standard setters can issue standards that companies can use to help them comply with the regulator’s upcoming Personal Financial Data Rights Rule.

In its application, FDX will describe how its 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”.

FDX’s full API specification currently covers technical components, account types, and data elements, some of which extend beyond what has been proposed for the CFPB’s 1033 rulemaking, it said.

More than 94 million consumer accounts now use the FDX API in North America.

Franklin Garrigues

TD Bank’s Franklin Garrigues

“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,” said FDX board co-chairs Steve Smith of Mastercard and TD Bank’s Franklin Garrigues in a joint statement.

At the same time, the board of FDX has appointed Kevin Feltes as the first chief executive officer of the non-profit organisation.

Feltes, who will assume the role in November this year, joins from JPMorgan Chase, where he recently served as the head of partnerships and strategy for the ‘Connected Banking’ group and as an FDX board member.

FDX board member and head of policy at Plaid, John Pitts, said: “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.”

Feltes added: “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.”

FDX’s managing director Don Cardinal will continue with the organisation and work with Feltes to serve FDX’s membership of more than 200 firms.

“Today’s announcement includes some of the most meaningful changes at FDX since the organization was founded,” added Smith and Garrigues.

“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 US and Canada.”

Further reading: Does Canada need an interoperable path with the US?