The Financial Data Exchange, LLC (FDX) has published a new white paper laying out the group’s core principles: The Five Principles of Data Sharing. The principles serve both as operating principles for FDX, as well as guidelines for the financial services industry on the essential elements of a secure, transparent consumer-first approach to the sharing of financial data.
The Five Principles of Data Sharing are derived from and influenced by thought leaders in the financial industry as well as regulatory entities and worldwide standards bodies. They are:
- Control: Consumers should be able to effortlessly grant, modify and revoke access to their financial data for applications or services they desire to use.
- Access: Account owners should have access to their data and the ability to determine who will have access to their data.
- Transparency: Individuals using financial services should know how, when, and for what purpose their data is used and know who they have permissioned.
- Traceability: All data transfers should be traceable. Consumers should have a complete view of all parties that are involved in the data-sharing flow.
- Security: Service providers need to ensure the safety and privacy of data during access and transport and when that data is at rest.
“Consumers should be empowered to leverage and benefit from their financial data, which has the ability to improve financial literacy, financial decisions and convenience,” said Don Cardinal, managing director of FDX. “In charting the financial industry’s course towards a more open, connected ecosystem, we believe these principles will protect consumers and are the bedrock upon which any data sharing should occur.”