Some fintech companies have stated that banks are not following through on the data sharing guidance set forth by the CFPB; banks on the other hand have said they are following through and sharing data with fintechs; the biggest complaint thus far is that banks are being selective and not granting access widely; banks have more complicated systems and multiple levels of compliance which could end a relationship before it begins; some ideas for better cooperation are for banks to design a set of standards as banks in the UK have done. Source.
Europe's PSD2 will require financial institutions to share data with third party service providers creating a new market opportunity for fintech developers with guaranteed account data access; in the US fintechs must still rely on relationship building to secure data partnerships thus making technology development more challenging; American Banker reports on details of a recently formed association that's seeking to make data access easier; the Consumer Financial Data Rights (CFDR) consortium includes 31 data aggregators and fintech companies lobbying for data access solutions and agreements; American Banker also outlines the progress that has been made in data sharing and proposals from the CFDR. Source
With open banking set to go live in Europe next month US banks will be keeping a close eye on how the process works; US banks have started to share data with fintechs through different partnerships for different reasons; the time is coming where the industry will have to look at open banking as a regulatory standard and some think the banks should really be the ones to set the parameters; coming up with a potential global set of standards is something that could really benefit all parties involved; “You need to globalize that at consistency so you don’t have different standards for each country in Asia, for example,” said Cynthia Murray, a managing director at Bank of America, to TearSheet. Source.
Yodlee, a unit within Envestnet, has come under fire in recent days for their data sharing practices; Senators Ron Wyden,...
Akoya is currently Fidelity’s data-sharing arm but now will become its own company, owned by Fidelity, The Clearing House and...
An open source movement helped propel technology in the 80s and 90s and industry professionals are speculating on the need for another open source movement in today's current environment; while open source is not favored because of its intellectual property disadvantages it does have significant advantages for innovation; Crowdfund Insider details some of the areas where it is being discussed including third party data sharing and loan stacking; it has also been a topic recently debated at LendIt USA 2017 and is in ongoing development and discussion with the Online Lending Policy Institute, ID Analytics, the Marketplace Lending Association and numerous other industry groups. Source
Most bank customers never think about how a bank’s technology works and what it means for their financial lives; core...
The OCC released data sharing guidelines that have been met with mixed reviews, especially amongst fintechs and data aggregators; “I...
Despite the risks commonly cited by market participants, trading desks can leverage sensitive information to their advantage while complying with regulations and protecting that data.
No More Content