Today was the public launch of the Financial Data Exchange (FDX). We’re thrilled to be a part of this industry organization that has broad representation across the financial services ecosystem. The group has set out on a mission to create a universal standard for data sharing and promote its proper implementation.
Today’s consumer is using their personal financial data more and more. Access to their data, an offshoot of the digital-era, has created an opportunity for them be more informed, personalize their finances to their desires and needs, and improve their financial choices.
With many different organizations providing services using consumer-permissioned data, it’s a good sign to see financial institutions, aggregators, developers, and even other industry organizations coming together in the interest of the consumer and the secure use of their data.
While many individual organizations have made data sharing a priority, existing models and agreements don’t fully address the gaps that result in security concerns for consumers and industry players alike due to a lack of a standard. Forming FDX shows that the industry takes these opportunities seriously enough that we aren’t waiting for regulations or other governing bodies to determine what’s best for data sharing relative to consumers.
Data sharing is an innovation engine. By coming together as an industry to address the technical requirements and data sharing framework, we believe that innovation engine will run much faster and go much further. Opportunity abounds.
All 22 members of the founding board have been instrumental in helping put the needed work into this effort, to show that it matters, not only to current members, but to the industry as whole. Simple, secure access to data for consumers and businesses should be an industry standard that will reduce complexity and increase collaboration and act as a foundation for the next generation of financial products and services.
This has been a two-year process whose ideas started even farther back. Finicity sought out partners to help collaborate in such an industry-wide effort. We were excited to find like-minded partner organizations who rallied around the concept to make FDX a reality.
FDX will build on standards that have existed in the market for years, centered on the Durable Data API (DDA).
While today’s announcement is a culmination of a lot of work, it’s just the beginning. We see FDX as freeing our industry from discussing the how of data sharing and instead allowing it to focus on further empowering the consumer to better their financial lives.