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Why use FDX? Shaping open banking standards for financial data interoperability in North America

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Open Banking is gaining momentum—not because of regulations, but because consumers are demanding more control of their data and connected financial experiences. For banks and financial institutions, this creates both opportunity and pressure: deliver the seamless experiences customers expect, while protecting trust and security.

That’s where standards like the FDX API come in—helping institutions adopt secure, consent driven data sharing that unlocks innovation and positions them to compete in a rapidly changing landscape.

Given these needs, financial institutions need a secure, consumer-permission based standard. Here’s why the FDX API fits that bill, and why banks and credit unions should adopt it.

The Financial Data Exchange is leading the charge on data interoperability in North America

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. When all the players in the ecosystem can speak the same language, friction can be eased.

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.

A 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.

Axway became a member of FDX in 2021, 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 of FDX as an official standard setting body is a nod to the widespread trust and acceptance of the standard, and a testament to the 230+ member organizations—which now include most major U.S. banks and fintechs—who believe in the FDX mission.

How the FDX API standard fulfills modern financial data requirements

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.

Here are five reasons FDX fits that bill:

The FDX API is no longer focused solely on compliance – it’s about building trust, enabling innovation, and staying competitive in this constantly shifting financial landscape.

Amplify Open Banking is an FDX-ready solution for securely delivering financial data

The latest FDX standards are always 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

Amplify Open Banking provides:

Amplify Open Banking delivers an intuitive developer experience that incorporates these standards natively. This makes it easier for financial institutions to manage and secure customer data access through robust security, identity, and consent management services.

Your fast track to Open Finance starts here

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.

Banks that adopt these standards early set themselves up for a stronger Open Finance future.  With Axway’s focus to “Open Everything”, our membership with FDX helps to enable a stronger open financial landscape.

The open banking revolution isn’t waiting. Are you ready to lead? Partner with us to help you build your open banking future.


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