The OpenID Foundation (OIDF), the international standardisation organisation which maintains a standard known as the Financial-grade API (FAPI), and the Financial Data and Technology Association (FDATA Global), the global trade association for companies working to promote ‘open finance’ and best practise financial data sharing, have signed a liaison agreement to enable them to work jointly across the world.
Under the agreement, FDATA Global, with chapters in Europe, North America and Australia/New Zealand, will lead policy efforts to implement open banking frameworks across the globe while OIDF will focus on the technology behind a digital identity solution. The agreement will:
• Provide a mechanism for the parties to work together on mutually approved white papers, press releases, activities, presentations and other communications;
• Allow participation of each party’s staff and members in the other party’s meetings, as mutually agreed by both parties;
• Provide a line of communications in order for the parties to communicate (without obligation and only to the extent each party chooses) about new work under consideration and about upcoming meetings;
• Support their common goals, including where appropriate and mutually agreed, to promote common standards across markets, and to collaborate on the development and implementation of certain standards and publications of common interest; and
• Avoid market confusion regarding their respective organizations and activities.
FDATA Global works with governments, regulatory authorities, and the financial services industries to open up the financial sector all over the world to the benefits of financial data and technology, including advocating for the adoption of open banking frameworks and open banking standards.
The OIDF is an international standards development organization of leading identity and security architects, with a broad range of communities and companies developing open standards that enable firms and customers to safely interact in digital channels. The FAPI working group of OIDF has collaborated to produce the FAPI security profile, which is an integrated set of schemas, security and privacy recommendations and protocols which enables common connections that enable API to easily connect and for financial data to be safely shared and privacy protected.
As Open Banking and Open Finance initiatives develop across the world, the FAPI profile will be the starting point for markets seeking to reduce complexity, risk and engineering costs, making it easier for firms to connect and test their APIs.
Commenting, FDATA Global’s Chairman Gavin Littlejohn said:
“Open finance is the single biggest movement in financial services globally. It will change the world, and it will change the lives of young and old, rich and poor.
“The core components of delivering this change are the enshrining of the customer’s right to share their data, a regulatory environment that supports this right and an implementation capability that transitions the market access to high quality secure APIs.
“In the UK API initiative, the introduction of the FAPI security profile and FAPI conformance testing suites ensured that both sides of the API connection conformed to the profile. This had a transformational impact on the implementation experience, making connections easier between banks and fintech firms, making it easier for regulators to understand that security standards were being met, and greatly reduced the complex engineering and maintenance costs across the industry.
“As the Australian, Japanese, US and some of the European groups are developing their API initiatives, it is great to see the FAPI Security Profile discussed in the standardisation agenda. FDATA Global is happy to be able to support the brilliant work of the OIDF and recommend that the FAPI working group output become the starting point of that conversation and a cornerstone of the implementation experience.”
Don Thibeau, Executive Director of the OpenID Foundation, said:
“The development of open global standards like FAPI require the painstaking commitment and contributions of a wide variety of companies, communities and individual developers. This is demonstrated in the ongoing work of the OpenID Foundation’s FAPI Work Group and the leadership of Nomura Research, Microsoft, Intuit and many others. Open standards are only as valuable as their adoption and adoption is driven by trust. The FAPI Self Certification Test Suite enables trust by helping assure interoperability across computing platforms and international regulatory regimes.
“Our collaboration with FDATA and others demonstrates the importance of the ongoing improvement of trusted standards and certification tests needed by a diverse and dynamic set of financial services players. Open Standards like FAPI enable the easy to use, secure and privacy protecting solutions for clients, consumers and consumers worldwide.”