The Consumer Financial Protection Bureau (CFPB) has officially recognised Financial Data Exchange, Inc. (FDX) as a standard-setting body under its Personal Financial Data Rights rule.
This rule, introduced in October 2024, requires financial institutions to allow consumers to transfer their financial data to other providers for free.
FDX, which operates in the U.S. and Canada, includes over 200 member organisations such as banks, data providers, aggregators, service providers, and consumer groups. Its goal is to develop secure, interoperable standards for consumer and business access to financial records.
The CFPB’s recognition of FDX comes with several conditions aimed at ensuring fairness and transparency. FDX must avoid conflicts of interest by steering clear of “pay-to-play” practices or favouritism, ensuring financial incentives do not create unfair advantages for any market players. Additionally, FDX is required to report on the adoption of its standards or maintain a public database that shows which companies use and adhere to them. To promote accessibility, FDX must also make its standards freely available to the public, providing equal access to both members and non-members.
The CFPB will monitor FDX’s compliance for the next five years and continues to evaluate other organisations applying for recognition.
Featured image credit: edited from freepik
