API management leader Axway is partnering with Cloudentity, an application identity and authorization provider, to deliver a production release supporting FDX 5.0 APIs that will unify finance around a single data standard, according to a press release from Axway.
The Financial Data Exchange (FDX) 5.0 will “dramatically expand” data sharing, especially with financial-grade security and consent management, support for two-way data sharing, and global interoperability.
The statement said the two companies will support increased demand from the U.S. and Canadian open banking market, noting that there are already more than 28 million consumer accounts using the FDX API to share financial data.
North American banks have come under increasing pressure to open customer data through secure APIs. The fact that Canada will end the practice of screen scraping by next January has added more pressure – as well as a US order to the CFPB to encourage the adoption of open banking.
“Our vision is to ‘open it all up’, and a critical part of that job is speaking a common language,” said Rahim Bhatia, Executive Vice President of Product Management at Axway. “Support for the FDX 5.0 API means Axway Open Banking helps our customers securely extend their reach to new markets and capitalize on integrated finance.
Meanwhile, Cloudentity CSO Nathanael Coffing cited “trust, security and privacy” as the necessary elements to support the financial ecosystem.
“FDX’s out-of-the-box support and compliance with open banking regulations ensures businesses can accelerate the delivery of next-generation financial services,” he said.
PYMNTS reported on FDX’s 28 million consumers in January, writing that more than 1 million new accounts were moved to the API per month and API calls reached 2.2 billion per month, showing usage increased data.
Read more: Financial data exchange: 28 million US consumers now use its API for sharing open banking data
“The financial services industry continues to implement the FDX API at a rapid pace,” says FDX Managing Director Don Cardinal. “It’s exciting to see our vision of FDX as a not-for-profit industry standards body with a common, interoperable, royalty-free API come to fruition,” Cardinal added. “The collaborative work of our members provides enormous benefits to the financial data ecosystem.”