Financial Data Exchange with Tom Carpenter & Jason Chomik | E196
Creating a standardized platform for open banking.
In today's episode, Jason will talk to Tom Carpenter and Jason Chomik from the financial data exchange. The Financial Data Exchange is an organization that works towards unifying data flow across different financial platforms.
Episode Highlights:
01.15: Tom explains that FDX is a not-for-profit organization specializing in an open banking or open fintechnical structure. They got an API that is open to use and one can freely use the API to ensure the safe exchange of data between organizations.
02.30: Jason Chomik says FDX sits under the hood in some respects as the Bluetooth standard to make sure that consumers can share, use and access their data in a secure and consumer-centric manner.
03.46: The industry could work together that you had a governance structure that levels the playing field among Fintech's, financial institutions, and aggregators so that the market could determine the best way to deliver on consumer demand, says Jason Chomik.
05.24: Open finance is probably the camel's nose under the tent of a broader set of use cases and a desire for consumers access, user data across a spectrum of industries, says Jason Chomik.
07.29: Tom says, what can we innovate is the thing. It is no longer about who can hold on to the data the longest, and it is more about who can offer the next great product and keep the customers long-term or get other customers.
10.15: Tom says there are several members who have already been working on their technology, and really for us, it is an open API, so they all need to build that out within their timelines in their prioritization, but now they see more and more feedback from each one of our every side. Both the Fintech side and the banking side.
11.50: Tom points out that onboarding many institutions is complex, and it is not a light undertaking, especially when you start thinking about the different security protocols and all of the other pieces that need to go in place to make everything happen.
13.43: You got a lot of adoption that you have to get before you can turn off an old technology to make the other ubiquitous, suggests Jason Chomik.
14.31: Jason Chomik says you got to phase a timeline for phased implementation to adopt API standards. They have seen other jurisdictions around the world that put very aggressive timelines in place on API adoption.
15.41: Jason inquires, how much success do you think we're starting to see trickle into the marketplace already based on integrations you've seen to date and implementation?
18.23: APIs from FDX is about getting everyone speaking the same language to communicate better.
19.19 Jason asks, you had one wish for something that could change your company or industry as a whole what could it be?
19.30 Tom says his wish would probably be more data-sharing agreements signed more quickly for us to create scale quickly.
20.51: It doesn't matter what your restrictions are. There is a push for something everywhere, and no one wants to be left last, says Jason.
21.39: No matter what type of open banking infrastructure is put in place for the system or in place around the world, the standard API is a function of all of them.
24.31: There is no one major financial institution that speaks to everybody because when you talk to everybody, you speak to nobody because we are all different, says Jason.
25.08: Jason asks what excites you the most about what you are working on and keeps getting out of bed in the morning to keep on fighting the good fight.
26.43: Jason Chomik explains how they empower consumers to make better financial decisions and ultimately empower their lives.
3 Key Points:
Jason Chomik shares why they started using available finance. They felt this is broader than banking data, and insurance, investments, and taxes are considered a wide swath of financial information.
The more people work with you, the more straightforward it becomes to transact within the network and the more valuable it becomes.
Jason Chomik says, from a success standpoint they noticed, how many consumer accounts have been transitioned from credential-based access to the FDX API.
Tweetable Quotes:
"Tom created a platform for companies with their different systems" – Jason Pereira
"There are a lot of countries around the world that have very highly concentrated banking systems, and they're just used to owning and dominating everything." – Jason
"It's the biggest challenge to making sure that both the Fintech's and the banks are walking to the same drum because all have the same end goal." - Tom
"Open banking is one of the single most important business issues if not data rights issues in the marketplace today." - Jason Pereira
Resources Mentioned: