"If there is no movement this year in Canada on a regulatory framework, and no further commitments in the budget, large financial institutions will keep controlling the banking system, and opportunities will be lost," said FDATA North America's Steve Boms.
As the bureau writes data-sharing rules, the third-party firms that work with fintechs say oversight by the agency would be more efficient - and better for consumers - than being policed by their bank partners.
'Screen scraping is not evil': Bankers, fintechs, aggregators face off
The CFPB held a gathering this week of bankers, fintechs, consumer groups and others to tackle a key data-sharing issue facing the bureau, and the event provided an opportunity to have it out over a bone of contention.
In May, Navdeep Baines, the federal Minister of Innovation, Science and Economic Development, announced a Digital Charter that presents 10 principles for modernizing the rules that govern digital technology in Canada.
In advance of a Canada Standing Senate Committee on Banking, Trade and Commerce hearing on March 21, the Financial Data and Technology Association today released a new paper, "Opportunities in Open Banking," that outlines the benefits of open banking for Canadian consumers, businesses, financial institutions and the economy.
While the U.S. government hobbles from one crisis to the next - the partial shutdown is just the latest example - policymakers in several other countries are staking out long-term polsitions that embrace financial technology innovation for the benefit of their citizens.
How Banks are Making it Easier to Use Fintech Apps
It's about as nerdy as it gets in fintech and digital banking. But the way you share your bank information with popular fintech apps is evolving - and it marks one of the most significant changes in how you manage your money digitally.
US Treasury Report Backs Open Banking, Fintech Charter, and Sandboxes
The US Treasury Department has called for a radical overhaul of financial technology regulation, backing a new national fintech charter, the introduction of sandboxes, and the opening of access to consumer data.
The term "open banking" might conjure up an image of a bank branch decorated like a hip loft where the teller isn't behind bulletproof glass. There's also a good chance that "open banking" means nothing to you. However, it's something you should probably get to know because it could change the landscape of the financial services industry.
Welcome to the bonus year. Independent annuity agents and the marketing organizations that serve them were against the proverbial wall, blindfolded and enjoying a last vape when the Department of Labor's (DOL) new secretary, Alexander Acosta, issued a fiduciary rule reprieve until mid-2019. Now, instead of exiting from the annuity market en masse, dazed agents and IMOs find themselves with a new lease on life.
Host Brian Wesolowski sits down with Natasha and Vijay from our Privacy and Data team to shine a spotlight on the myriad ways states are taking privacy regulations into their own hands, after several moves in the opposite direction from Congress. Then Brian brings in Steve Boms, Vice President of Government Affairs at Envestnet | Yodlee, to discuss what's happening at the crossroads of finance and technology.
Innovation Will Help Americans Improve Their Financial Health
In addition to a multitude of innovations, the Industrial Revolution was significantly impacted by the railroad. The Iron Horse allowed goods to travel in days across the American continent that would previously have required months, fueling the factories and workers in American cities that turned this nation into an economic powerhouse.
Fintech trading app Robinhood was at the center of the GameStop controversy that Congress is investigating. But a too-heated response from Congress could undermine access to affordable financial tools.
The Biden administration can ensure the success of economic equality and financial inclusion by completing an initiative under the Consumer Financial Protection Bureau: enacting regulations to implement Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
What Happens if Mastercard and Visa Gobble Up All the Data Aggregators?
If [Mastercard and Visa's] deals are approved by regulators, the largest card networks will own two of the largest US data aggregators, which are companies that collect and feed bank customer data into fintech apps.
Approximately two-thirds of the U.S. population currently is being urged to stay home in the face of the COVID-19 pandemic. With their mobility restricted, housebound families have turned to apps to get them through this unprecedented period.
The pace of technological advancement between now and 2030 could be even more rapid than what we saw over the last decade. The greatest failure, however, will be if Washingon does not change its own culture on financial regulation.
Industry-Led Groups Only First Step to Open Banking
By creating industry-led open banking working groups, the US and Canada are inching their way toward the changes needed to provide the same access to the financial technology tools citizens in other countries do.
President Donald Trump just traveled to London to talk trade, but it is Rep. Greg Meeks (D-NY) who has imported Britain's best idea. Meeks, who heads the House Financial Services Subcommittee on Consumer Protection and Financial Institutions, is expected to introduce legislation before the July 4 recess to study how Open Banking can be brought to the U.S.
Open Banking: Consumers Must Have Right to Share Data
Millions of Canadians have turned to financial technology, or fintech, which provides intuitive, accessible platforms that enable even the least financially savvy consumers to manage finances and improve economic outcomes.
Collectively, the members of the Financial Data and Technology Association of North America provide approximately 3.5 million Canadians with access to new, technology-powered financial tools that help them manage their finances. Despite an ambiguous regulatory environment, these consumers and small businesses have voted in favor of financial technology.
Across North America, policymakers, fintech companies, and financial services firms are finally beginning an earnest dialogue about open banking. The Senate Banking Committee recently touched on the issue at a Sept. 18 hearing - one of the first official discussions in the halls of Congress.
U.S. Regulators Falling Behind in Supporting Fintech Regulation
Regulators in the US are struggling to keep up with the rate of technology innovation sweeping financial services. Between technology startups and traditional firms looking to use blockchain and nontraditional companies entering finance, regulators around the world are reassessing existing frameworks.
The SEC's Proposal Likely Doesn't Signal the End of Washington's Fiduciary Drama
It's been a long and winding road - politically- since the Obama-era Department of Labor (DOL) finalized its fiduciary rule in June 2016. Full of soap opera-esque twists and turns, many believe the Fifth Circuit Court of Appeals' decision to kill the DOL rule means the end could be in sight.
The One Area Where Banks and Fintechs Want More Regulation
Banks, fintech firms and data aggregators are asking regulators to provide more clarity on how to handle consumer data and who is responsible for leaks when it is shared between firms - a request that's seemingly a reversal from the deregulatory approach the industry often takes.
Open banking, powered through Open APIs, puts the consumer, at the center of the financial services ecosystem. In this new, innovation-driven environment, those market players that provide solutions to consumers where they most demand them will flourish, whether they are traditional banks or fintech firms.
The Department of Labor's Fiduciary Rule on retirement advice is taking effect today. After much delay and uncertainty, particularly in the last six months under the new administration, retirement advisors now must put investor interests first when choosing products and determining fees for their services.
FDATA North America Executive Director Steve Boms noted that open finance maximizes the potential of fintech to improve financial access and inclusion, and the new members will be important allies in this effort.
The financial technology and data aggregation communities have long advocated for the CFPB to issue a rule under Section 1033, asserting this is the key first step toward an open finance framework under which a consumer or small business is in full control of their financial data.
Mastercard Acquires Finicity, an Open Banking and Data Fintech
Mastercard announced on Tuesday it has entered into an agreement to acquire Finicity, a real-time financial data and insights access provider providing open banking tools - an area of growing importance for financial services firms
Canada is considering a move toward open banking, a formalized system in which consumers are empowered to share their bank-held data with third-party providers (TRPs) to encourage competition and innovation. If the experience in Britain is a guide, this advance will transporm the country's economy and imp
According to data compiled by Experian, New Jersey consumers have, on average, more credit cards in their pockets than the residents of any other state. Even more telling, the average New Jersey household has more than $7,150 in credit card debt, the fourth-highest rate in America.
For Canadian Consumers and Small Businesses, Open Banking is the Way Forward
The national budget passed by Parliament requires the Department of Finance to offer findings and recommendations for a move toward open banking. Lawmakers didn't set a deadline, but Finance Canada is already engaging with industry stakeholders to solicit input.
The Financial Data and Technology Association (FDATA), which played a pivotal role over the last five years in crafting the design and implementation of open banking standards in the United Kingdom and in Europe, announced today the launch of a North American arm, FDATA North America.
In Data Dispute with Capital One, Plaid Stands Alone
Plaid Technologies' public effort to blame Capital One after a security upgrade blocked the data aggregator from accessing customer data appears to have backfired. Other data aggregators have distanced themselves from the protest, nothing they have been unaffected and even speaking out in defense of the bank.
Banks, Businesses Aren't Ready for GDPR - But Consumers Are
While PSD2 was the subject of extensive focus for European banks, businesses, tech firms, and fintechs, these institutions may not be ready for another data initiative, the General Data Protection Regulation, set to come into effect this May. In fact, studies show that less than half of businesses in the U.K are even aware of GDPR, much less ready to comply.
Yodlee, a financial data aggregator and technology company, hired Allon Advocacy to work on issues relating to consumer financial data, credit reporting, cybersecurity and government rules about fiduciary standards. The company is one of Allon Advocacy's first lobbying clients. The firm has also signed Freedom Financial Network, which offers loans and mortgages, in addition to debt settlement services.
The DOL's Fiduciary Rule is Here...But For How Long?
The June 9 initial applicability date of the DOL fiduciary rule is here, and advisors tell FA-IQ they're largely ready to comply with the requirements of acting in the best interest of their clients. But a law firm notes that many advisors have been asking exactly how to comply with the Impartial ICS, which are in place until the rule's full implementation on January 1, 2018.
Consumers Will Suffer Without Access to Their Data
The ability of Americans to see their total financial picture across multiple financial institutions and quickly access technology-based tools to analyze their financial data is no longer theoretical. The fintech industry provides this capability to millions of consumers.
How to Protect Consumer Rights in Battle Over Data Access
For those who believe passionately in the democratization of consumers' financial data, the Consumer Financial Protection Bureau's new interest in protecting third-party access to such data is a significant victory.