API manager Axway has teamed up with application identity and authorisation provider Cloudentity to offer the first production release to support Financial Data Exchange (FDX) 5.0 APIs.
Axway’s Open Banking solution with Cloudentity means they are the first to market with an authorisation server that supports the latest version of the common data standard in North America.
“Our vision is to ‘open everything,’ and an essential part of that work is speaking a common language,” said Rahim Bhatia, EVP of product management at Axway.
“Support for the FDX API 5.0 means Axway Open Banking helps our customers securely extend their reach to new markets and capitalise on embedded finance.”
The latest FDX API 5.0 expands the standardisation of data sharing, mainly through financial grade security and consent management, support for “two-way” data sharing, and global interoperability.
Nathanael Coffing, chief strategy officer at Cloudentity, added: “Our financial ecosystem is built entirely on trust, security and privacy. Out-of-the-box support for FDX and Open Banking regulatory compliance ensures that companies can accelerate delivery of next-generation financial services.”
In January this year, FDX reported that 28 million consumer accounts are using the FDX API for financial data sharing.
Eyal Sivan, head of Open Banking at Axway, explained: “When banks expose customer data via Open Banking API to external parties, financial-grade authorisation and strong consent management based on the latest security standards is key to keeping customers’ data safe.
“In many regions, including North America, the Open Banking standard themselves mandate adoption of these requisite security protocols, such as OIDC and FAPI.”
He added: “Understanding and adopting these new open banking authorization protocols is often the trickiest part of open banking, and integrating them into your existing identity management systems is complex and time consuming, so having this already baked into the Axway Open Banking solution allows banks to focus on their customers, rather than technology hurdles.”