Axway, Cloudentity Partner on Financial Data API
API management leader Axway is teaming with Cloudentity, a provider of application identity and authorization, to offer a production release to support FDX 5.0 APIs, which will unify finance around a single data standard, an Axway press release said.
The Financial Data Exchange (FDX) 5.0 will “significantly expand” data sharing, especially with financial grade security and consent management, two-way data sharing support, and worldwide interoperability.
The release says the two companies will be supporting more demand from the U.S. and Canadian open banking market, noting that there are already over 28 million consumer accounts using the FDX API to share financial data.
North American banks have been under more pressure to open up their customer data through safe APIs. The fact that Canada is ending the practice of screen scraping by next January has added more pressure — along with a U.S. order for the CFPB to drive open banking adoption.
“Our vision is to ‘Open Everything,’ and an essential part of that work is speaking a common language,” says Rahim Bhatia, executive vice president of product management at Axway. “Support for the FDX API 5.0 means Axway Open Banking helps our customers securely extend their reach to new markets and capitalize on embedded finance.”
Meanwhile, Cloudentity CSO Nathanael Coffing has cited “trust, security and privacy” as the things needed to sustain the financial ecosystem.
“Out of the box support for FDX and open banking regulatory compliance ensures that companies can accelerate delivery of next-generation financial services,” he said.
PYMNTS reported on FDX’s 28 million consumers in January, writing that over a million new accounts were transferred to the API per month, and that the API calls were up to 2.2 billion per month, showing more data usage.
Read more: Financial Data Exchange: 28 Million US Consumers Now Use Its API for Open Banking Data Sharing
“The financial services industry is continuing to implement the FDX API at a rapid rate,” says FDX Managing Director Don Cardinal. “It’s exciting to see our vision for FDX as a non-profit industry standards body with a common, interoperable and royalty-free API coming to fruition,” added Cardinal. “The collaborative work of our members provides enormous benefits to the financial data ecosystem.”