CFPB Recognizes FDX as Standard Setter for Open Banking

The CFPB approved the Financial Data Exchange, Inc., ("FDX") as a recognized standard-setting organization under the Personal Financial Data Rights Rule.

The FDX is a nonprofit organization with over 200 members that develops and maintains interoperable standards for secure access to financial records, including the FDX API standard and Open Financial Exchange standard.

The Personal Financial Data Rights Rule, adopted by the CFPB on October 22, 2024, requires financial institutions, including banks, credit unions and other financial service providers, to make consumers' financial data available to the relevant consumer upon request and in a secure, electronic format. (See previous coverage.)

Under the Order, FDX must adhere to terms that include adopting a conflicts-of-interest policy, ensuring transparency in its standards development and maintaining governance structures that provide balanced representation for diverse stakeholders. Recognition enables FDX to issue "consensus standards" relevant to open banking in the United States. As part of the conditions, FDX must provide public access to its standards, monitor its processes regularly and report on market adoption of its standards starting in 2026.

Recognition lasts until January 2030, but may be extended.