The Consumer Financial Protection Bureau has approved the Financial Data Exchange’s (FDX) application to issue standards for data sharing for open banking, according to CFPB’s release today.

The CFPB asked industry leaders to apply to become part of a standard-setting body for data sharing in a release on June 5, 2024, but only data-sharing infrastructure company FDX applied, according to the agency’s website. JPMorgan, Bank of America and Citi are some of the members of the organization, according to the company. 

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FDX will now be able to issue guidelines that financial institutions and fintech companies can adopt to share financial data securely, according to CFPB’s release.  

The agency has banned “pay to play” tactics which ensure that the FDX and its staff will not engage in developing standards favorable for certain organizations. The release also stated that FDX must report to the CFPB about the adoption of its data-sharing protocol and maintain publicly available resources where companies can disclose their use of the standards. 

“The approval of FDX’s application is a crucial milestone in our efforts to empower consumers with greater control over their financial information,” Rohit Chopra, director of the CFPB, said in the release. “By establishing clear and consistent standards, we can enhance data security and promote a more competitive financial marketplace.” 

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