The OpenID Foundation (OIDF) has signed a liaison agreement with the Financial Data and Technology Association (FDATA Global) to work together around the world.
OIDF is an international standardisation organisation which maintains the Financial-grade API (FAPI) standard, while FDATA is the global trade association for companies working to promote ‘open finance’ and improve financial data sharing.
As part of the deal, FDATA Global, which operates in Europe, North America, Australia and New Zealand, will lead policy efforts to implement open banking frameworks around the world. OIDF will focus on technology used for digital identity solutions.
Through the agreement, it will enable the bodies to work together on mutually approved white papers, press releases, activities, presentations and other communications. It also lets each party’s staff and members attend mutually agreed meetings, work to boost market awareness on their activities and provide a line of communication between the organisations.
In addition to this, the agreement reinforces support for common goals, such as common standards across markets and the development and implementation of standards and publications.
FDATA Global 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 works with governments, regulators and financial services industries to open up the financial sector and improve the sharing of data and technology – this includes encouraging the adopting of open banking frameworks and standards.
The OIDF aims to nurture the establishment of an international standard for identity and security architects. Its work through FAPI have helped to create an integrated set of schemas, security and privacy recommendations and protocols.
OpenID Foundation executive director Don Thibeau 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.”
He added, “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.”
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