On January 8th, 2025, the Financial Data Exchange, Inc. (FDX) became the first to be recognized as a standard setting body under the Consumer Financial Protection Bureau (CFPB)’s Personal Financial Data Rights rule. Despite recent regulatory uncertainty — or perhaps as a result of it — collaborative industry groups will be more needed than ever, having already emerged as market-driven forces for cooperation and standardizing financial data APIs in the United States.
In a survey of 1,000 Americans, 60% of respondents said they feel positive about open banking. This sentiment aligns with the continued momentum around the financial services model, which is making waves across Europe and North America. To put this in perspective, 45% of consumers at U.S. national banks have already started to use or are interested in the concept of open banking.
Whether it’s an accounting system seamlessly connecting to banking accounts, easy access to credit, or finding the best savings interest rate, the possibilities for open banking are endless. However, the success of an open approach is rooted in creating a common language so all companies can participate.
At Axway, we’re proud to have played an early role in developing the open banking standards in North America and shaping the model for the future.
Latest updates: Section 1033 of the Dodd-Frank Act became law in January 2025, but actions by the current administration to rewrite the rule have led to uncertainty over its future. Get the facts here.
How the Financial Data Exchange drives data interoperability
The Financial Data Exchange (FDX) is a consortium of key stakeholders in the financial data ecosystem tasked with creating a common API standard that provides interoperability around financial data sharing. The idea is that when all the players in the ecosystem can speak the same language, it removes friction.
API standardization is important in an endeavor like open banking, because without a common standard, each bank or credit union must develop custom APIs for every fintech it works with, creating a fragmented and costly landscape.
This lack of standardization also leads to vendor lock-in, where institutions become overly dependent on a single data aggregator, making them vulnerable to rising costs and reduced flexibility.
Many industries share some form of API standard, and FDX has become a critical part of financial data interoperability in North America.
In 2021, Axway became a member of FDX, working alongside them to modernize the financial services ecosystem. As part of FDX, we’ve supported establishing common, open, shared standards for the exchange of financial data, leading the charge to bring open banking to North America.
Today, the FDX API is leveraged in more 114 million customer accounts across the North American financial ecosystem.
The CFPB’s recognition as an official standard setting body is a nod to the widespread trust and acceptance of the FDX standards, and a testament to the 230+ member organizations—which now include most major U.S. banks and fintechs—who believe in the FDX mission.
Building FDX standards into Axway’s open banking solution for greater financial data security
The latest FDX standards are built into Amplify Open Banking—our solution for scaling and accelerating the exchange of data within the fintech ecosystem in a repeatable way.
By leveraging these common standards, we allow for seamless integration that makes it easy for financial institutions and third-party providers to collaborate, with security and transparency ensured.
See also: Dodd-Frank 1033: What the Final U.S. Open Banking Rule Means for Banks
Beyond data interoperability, API standardization helps increase the security of financial data by contributing to the eventual elimination of screen scraping.
Controlled access: Standardized APIs provide a structured, controlled mechanism for data sharing. Unlike screen scraping, which requires a user to share their login credentials so a bot can “scrape” their bank account sites, APIs use secure token-based authentication.
Where screen scraping creates significant security vulnerabilities, the FDX API standard enables explicit, limited-scope data sharing without revealing full login credentials.
Granular consumer consent management: Standardized APIs provide clear, transparent mechanisms for users to understand and control what data is being shared, with whom, and for how long—a level of control impossible with traditional screen scraping techniques.
Data protection through alignment with global standards: The FDX API Security Profile incorporates the Open ID Foundation’s Financial-grade API (FAPI) security standard, which provides advanced protocols for:
- Securing API traffic
- Authenticating end users
- Implementing stringent security measures (FAPI 1.0 Advanced & CIBA protocols)
Amplify Open Banking delivers an intuitive developer experience that incorporates these standards. This makes it easier for financial institutions to manage and secure customer data access through robust security, identity, and consent management services.
Move beyond compliance towards innovation
While the future of U.S. regulation and associated framework are still being determined, the true imperative for open banking lies in innovation and market transformation.
The most forward-thinking financial institutions aren’t just checking compliance boxes; they’re seizing the opportunity to reimagine financial services through secure, intelligent data sharing.
Our goal, like FDX, is to reduce the complexity around open banking APIs and encourage their adoption – offering a proven, rapid pathway to open banking implementation.
Our API management and integration solutions can accelerate your journey, helping you transform regulatory requirements into competitive advantages. We don’t just provide technology; we deliver a strategic roadmap to help you innovate faster, connect more securely, and stay ahead of market expectations.
The open banking revolution isn’t waiting. Are you ready to lead?