Like Switzerland, the USA takes a market-driven approach to Open Banking. Because banks were reluctant to share their data, American FinTechs long had to resort to the screen scraping method. But then the financial institutions realized that they had no control over data access by third parties, and that there was no transparency. In addition, bank customers didn’t know what data from their online banking activities was being read by FinTechs.
To counteract this, the Financial Data Exchange (FDX) consortium was formed in 2017. Some 200 financial institutions and FinTechs, including big names such as Chase, Citi, PayPal, and Plaid became members. FDX aims to establish the efficient exchange of data using standardized APIs in the US financial sector, and to thereby replace screen scraping.
The situation in the USA is comparable with that in Switzerland. “If we can’t get together in a way that actually drives innovation and full data access, then the regulators will just step in and regulate around this,” said Steven Smith, CEO of Finicity, and Co-Chair of FDX, at the consortium’s inaugural meeting. Today, more than 53 million accounts are connected to FDX’s APIs.