Atlanta, GA: Open banking is an important regulation update for financial institutions throughout the United States. The update is imminent. Per the requirements of the Consumer Financial Protection Bureau (CFPB), financial institutions (FI) will be required to securely expose client data on demand, via API connectivity*.
Data Hub provides real-time integration to any fintech product , focused on a core agnostic gateway, securely and stacked at scale. Data Hub now supports FDX 5.1, which means it abides by the requirements of the pending open banking regulatory initiative, and can expose any banking system of record using the FDX standards.
Open banking will boost competition significantly because it will enable data to be shared with third parties, with ease. Data Hub clients will benefit from this by being able to efficiently differentiate on the personalizations that matter to their business, attracting new customers.
Customer information is highly sensitive and treated with care. Each instance can manage allowed connections and make real-time adjustments as needed.
Fintech providers like Plaid and Intuit already support FDX, allowing Data Hub customers to immediately provide integration for Quickens and Plaid to leverage Data Hub for real-time integration with the banking system of record.
Data accessibility is an additional benefit to investing in Data Hub. Data lakes and databases can plug into the Data Hub to aggregate all of the data that flows through Finite.
Preparing for a merger? Data Hub creates efficiencies for both the acquiring and acquired institutions by having consistent data attributes across ecosystems. Additionally, multiple systems of record can be connected to aggregate multiple relevant data elements in real-time.
CFPB timeline:
- 1/25/23 – final day for regulatory feedback.
- Q1 2023 – a report will be published about the input received, which will inform the proposed rule that Chopra plans to issue later in 2023. According to the timeline laid out by Chopra, the CFPB will move forward with implementation.
- 2024 – final ruling issued.
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