In the past five months, the Financial Data Exchange (FDX) has brought in 25 new members including heavy-hitting industry participants such as Ally, Discover, MassMutual, and TransUnion. The recent boost brings the FDX’s total membership up to 82 organizations, a 3x membership increase since October 2018.
FDX aims to standardize financial data sharing by means of an API and technical standards that adhere to the group’s core principals: Control, Access, Transparency, Traceability, and Security.
“Working together as an industry, we provide consumers and businesses with better transparency, security and control over their financial data, while eliminating access barriers for innovators,” said Don Cardinal, Managing Director of the Financial Data Exchange. “Recently-signed data sharing agreements by our member firms are verifiable steps towards a credential sharing-free future all members are working toward.”
The unified approach will help mitigate screen scraping, a method of gathering consumer data that has the potential to compromise bank security by mimicking fraudulent activity. This, in turn, can make it difficult for banks to distinguish between the two logins. In the U.S., JPMorgan Chase became one of the first banks to stand up against the practice. The bank banned fintechs from screen scraping earlier this year.
A list of all FDX members can be found on the organization’s website.