Open Banking & Finance

Unlock open and embedded banking to scale your business

Interested in how the Financial Data Exchange (FDX) and Consumer Financial Protection Bureau (CFPB) will impact your business? Explore the benefits of open banking and embedded finance to improve customer experiences, increase revenue, and speed up the launch of new financial products.

Simplify and accelerate FDX and CFPB adoption

By leveraging Sensedia's FDX support and how it relates to the CFPB data protection law, institutions can seamlessly align with industry governance, regulatory, and compliance requirements, and enterprise data management standards.

We are experts in Open and Embedded Finance ecosystems

Using Sensedia's Open Banking Platform, our customers can accelerate Banking as a Service (BaaS), Embedded Finance, and Open Banking strategies that are developed and supported via a true Open standards compliant platform.

Sensedia is the top choice for Open Banking solutions

Sensedia's API platform offers ready-to-use features such as security, traffic management, cache, and out-of-the-box connectors to mainstream databases and other services that help you and your partners achieve results in a shorter time-to-market.

WHITE PAPER

Open Banking Basics: A Crash Course for Banks and Credit Unions

Sensedia provides a turnkey solution built on FDX standards, emphasizing the vast opportunities it offers banks, credit unions, and fintechs.

Forrester Wave

Leading the Way in API Management

We received industry recognition as a Leader in the global report The Forrester Wave™: API Management Solutions, Q3 2022, receiving the highest scores in Product Vision, Planned Enhancements, Supporting Services, and Market Approach.

PERSONALIZED SUPPORT

Count on the guidance of our expert consultants

We partner with you in API design and implementation, getting regulatory and security certifications, and doing sandbox testing. This helps make sure you smoothly go through all the steps of Open Banking with no unexpected issues

Payment processing

Level up your payments with QR Code, Pix, FedNow

We handle the task of collecting customer data from different institutions, enabling you to focus on innovating your business through new payment systems and embedded payment solutions.

Partner Ecosystems

Manage your partner ecosystem

Access detailed API and user consent information through interactive dashboards, manage certificates and scheduled maintenance, and simplify partner onboarding and business integration.

INDUSTRY EXPERTISE

About FDX & CFPB

The FDX API is the standard unifying the financial industry, providing individuals and institutions with a safe and reliable method to access their financial information. The CFPB, launched on October 19, 2023, is targeting the implementation of fair, transparent, and competitive practices for financial services consumers. Despite the lack of a singular standard, API implementations must be built with security, scalability, and interoperability in mind to facilitate secure data exchanges and compliance requirements.

Begin your Open Banking journey today

Leveraging Sensedia's technical expertise and a mature Open Banking platform, you can seamlessly enter the Open ecosystem and explore new business opportunities.

Additional Products

Discover our entire suite of products

API Management Platform

Easily manage the full lifecycle of your APIs.

Sensedia Integrations

Create and manage integration flows with ease.

Service Mesh

Achieve agility in developing, operating, and evolving distributed applications.

API Adaptive Governance

Ensure the security and flexibility of your architecture with confidence.

Events Hub

Enable event distribution that react to business moments in real-time.

Frequently asked questions

Find the answers to the most common questions about our Open Banking platform.

How do APIs facilitate open banking and what standards are followed in the US?

APIs, or Application Programming Interfaces, are the foundation of open banking, enabling third-party developers to access and utilize the functionalities of banking systems in a secure and controlled manner. APIs serve as the essential "bridges" that facilitate seamless communication and interaction between software systems. 

In the United States, there is currently no widely adopted or regulated singular standard. However, various protocols and standards have emerged to address this, including the Financial Data Exchange (FDX) and the Consumer Financial Protection Bureau (CFPB)  standards. FDX is a unified protocol with the objective of establishing a secure and interoperable standard for sharing consumer financial data. The CFPB, launched on October 19, 2023, is targeting the implementation of fair, transparent, and competitive practices for financial services consumers.

Despite the lack of a singular standard, API implementations must be built with security, scalability, and interoperability in mind to facilitate secure data exchanges and compliance requirements.

What is open banking and how does it work in the USA?

Open banking is a system where banks and other financial institutions provide access to their data via application programming interfaces (APIs). This enables third-party developers to build innovative applications and services around financial institutions. Open banking is intended to provide more consumer choices, improve the customer experience, and promote economic efficiency. While open banking is mandated by regulations like PSD2 in Europe, its advancement in the USA is primarily driven by market forces and the competitive landscape between banks and fintech companies, currently the FDX and the CFPB are working on new regulations that aim to protect consumer data and enforce fair practices.

What are the potential benefits and risks of open banking in the USA?

The potential benefits of open banking include a more competitive market, increased innovation, better financial management tools, and better, more customized products and services for consumers. However, open banking also introduces new risks, particularly concerning data privacy and security. 

With an increasing number of third parties gaining access to sensitive financial data, the potential for data breaches or misuse of information becomes more pronounced.

What is the Consumer Financial Protection Bureau (CFPB)?

The CFPB was created to provide a single point of accountability for enforcing federal consumer financial laws and protecting consumers in the financial marketplace. Before, that responsibility was divided among several agencies. Today, it’s our primary focus. https://www.consumerfinance.gov/about-us/the-bureau/

What is the Financial Data Exchange (FDX)?

FDX is a nonprofit organization in the US and Canada dedicated to establishing a common and secure standard, the FDX API, for accessing consumer and business financial data. It includes a diverse board of directors and a global membership of financial institutions, data aggregators, fintechs, and others focused on user-permissioned financial data sharing. https://financialdataexchange.org/

What does the proposed CFPB ruling on section 1033 mean?

The CFPB is currently working on what they call "Required Rulemaking on Personal Financial Data Rights." The objective is to create rules that ensure banks or other financial institutions must provide all information relative to the consumer’s data. 

The CFPB is now in the process of writing regulations to implement section 1033. According to a process set up by Congress in the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), the CFPB is obligated to gather a group called the Small Business Review Panel. This panel talks to people who represent small businesses that might be directly affected by the rules the CFPB is thinking about making. They do this to get opinions and feedback on how these rules might affect small businesses.

On October 27, 2022, the CFPB released two key documents. One outlines their proposals for the Personal Financial Data Rights Rulemaking, including legal aspects, the rulemaking process, and impacts on small businesses. The other is a summary and discussion guide for these proposals.

Why choose Sensedia?

We have been closely monitoring Open Banking since its inception and actively involved in its evolutionary agenda. Our unrivaled expertise in this market-disrupting initiative enhances the experience of our clients in the financial sector.