RESTON, Va.--(BUSINESS WIRE)--The Financial Data Exchange (FDX) today announced an update of its common open finance standards via the release of its FDX API version 5.2. The new version of the FDX API adds more functionality to the fintech and financial institution ecosystem, including new requirements for Certification by Data Recipients, management of payment initiation for users, and updated data for tax returns. The update aligns with other global standards like the Open ID Foundation’s Financial-grade API (FAPI) security standard and the insurance industry’s ACORD annuity standards to promote greater interoperability and industry adoption.
With the update, FDX API 5.2 clarifies “must” versus “should” language; includes new requirements for Certification by Data Recipients (fintech apps that interact with financial Institutions), and management of payment initiation for users has been added.
Additionally, the API now includes a prescribed user journey in the UX Guidelines for setting up and consenting to payment functionality. For tax filing, this update enables the inclusion of data needed for IRS Filing Information Returns Electronically (FIRE).
Many of these updates provide more specific information to be included when sharing data and standardizes the enumeration structure for developers. Further, the FDX UX Guidelines clarify to implementers what they must and should display to the end user. These guidelines detail the consent journey and how to edit or revoke consent through dashboards that implementers must provide.
“With 5.2, the FDX API has already surpassed the level of a robust API fit for purpose for the open banking ecosystem,” says FDX Managing Director Don Cardinal. “The additions and refinements in 5.2 were very targeted and specific, giving evidence that the core open banking features appear to be complete.”
The FDX API updates originate from the work of FDX’s global financial industry membership across more than 30 different technical working groups and task forces to identify and develop enhancements and updates to FDX standards to meet market needs. FDX API 5.2 is free to access and use subject to the terms of the FDX API License Agreement, and FDX members can access all documentation regarding FDX API 5.2 through the FDX member Confluence page.
FDX recently reported that 42 million consumer accounts currently use the API for financial data sharing in the U.S. and Canada. FDX releases updates to the FDX API twice a year, with significant updates delineated by whole version numbers. This release further positions FDX as the most fit-for-purpose Open Finance framework for Canada as well.
About Financial Data Exchange
Financial Data Exchange, LLC is a non-profit organization operating in the US and Canada that is dedicated to unifying the ﬁnancial industry around a common, interoperable, royalty-free standard for secure and convenient consumer and business access to their financial data. FDX empowers users through its commitment to the development, growth, and industry-wide adoption of the FDX API, according to the principles of control, access, transparency, traceability, and security. Membership is open to financial institutions, fintech companies, financial data aggregators, consumer advocacy groups, payment networks and other industry stakeholders. FDX is an independent subsidiary of FS-ISAC. For more information and to join, visit www.financialdataexchange.org.