Koxa unveils Open Banking ‘Gateway’ to help US banks comply with regulation

US-based Open Banking enablement platform Koxa has launched a solution, ‘Open Banking Gateway’, which is designed to help banks meet the financial data access requirements of upcoming Open Banking regulation, Dodd-Frank Section 1033.

The new solution from Koxa will provide banks with Open Banking connectivity to digital financial apps and services used by consumers, as well as access and consent management, and will ensure banks are compliant with Open Banking regulations.

Koxa said its platform serves as “a single source of connectivity and access management between a bank partner and permissioned data networks”, including pre-built connectivity with Plaid, and fintech applications.

“As Open Banking formalizes in the United States, it is critical that financial institutions have solutions they can leverage in order to meet Open Banking requirements and ensure their customers can maintain secure access to the apps and services they want,” said Raja Chakravorti, head of universal access at Plaid.

“Partners like Koxa are lowering the barriers to entry and enhancing the Open Banking services for financial institutions across the country.”

The gateway features a Koxa-hosted Financial Data Exchange (FDX) API, a consent management solution, developer portal and support portal, all hosted by Koxa, as well as an “embeddable” consent management dashboard.

Don Cardinal of Financial Data Exchange

“Koxa has been an active member in FDX for several years, co-chairing task forces, presenting at our global summits and a frequent contributor to the FDX API technical specifications. We are grateful to have Koxa help FDX with its mission,” said Don Cardinal, FDX managing director.

Koxa’s co-founder and chief technology officer Camellia George added: “Driving secure, reliable, and compliant access to financial data for consumers and businesses has always been our mission.”

The Consumer Financial Protection Bureau’s Personal Financial Data Rights rule, proposed in October 2023, is the first proposal to implement Section 1033 of the Consumer Financial Protection Act.

Under the proposed Data Rights rule, individuals in the US would be able to share data about their use of checking and prepaid accounts, credit cards, and digital wallets, and to access competing products and services.