Looking back on 2023, several significant open banking milestones were achieved. The work done by industry, policymakers and governments to drive open banking and open finance is accelerating, and we believe we’ll see many positive effects of that work this year.
Here are the key policy developments that everyone should be aware of and tracking for 2024
USA
In October, the Consumer Financial Protection Bureau (CFPB) proposed a new Personal Financial Data Rights rule to allow consumers greater access to their data. This proposed rule would be implemented under Section 1033 of the Dodd-Frank Consumer Protection Act. Final rule-making is expected Fall 2024. This rule will dramatically change the way consumers, financial institutions and fintechs interact with financial data. It’s a rule we at Yodlee have been anticipating for several years and look forward to the innovation it will bring to financial services in the US. Learn more about the Personal Financial Data Rights rule [link to new webinar recap blog article, which will be posted on Yodlee’s blog soon.]
Canada
Following the Budget announcement of an open banking framework in late 2023, we expect the open banking landscape in Canada to begin building in 2024. The government plans to introduce legislation in its 2024 Budget and implement an open banking framework by 2025. This is a big step for open banking in Canada, and we at Yodlee welcome the announcement and look forward to shaping and building open banking in Canada.
Alongside the budget announcement the Bank of Canada (BOC) also announced the finalization of the Retail Payment Activities Act (RPAA). This regulation is designed to encourage transparency within the payments ecosystem in Canada. It is also a big step forward in innovating the Canadian payments system. Yodlee is closely watching development of the RPAA and look forward to working with the BoC as it launches its pilot registration program.
UK
In December, the Joint Regulatory Oversight Committee (JROC) published a report outlining its reviews of the open banking structure, governance and funding model, and operations for the future open banking entity. Envestnet | Yodlee played a key role as a co-chair for the funding model working group. JROC is expected to publish its final view on the future entity this quarter, establishing the framework for the next phase of open banking in the UK.
In the meantime, the Data Protection and Digital Innovation Bill ascended to the House of Lords, where it is now being debated. We’re looking forward to this bill receiving royal assent in the first half of 2024, which will provide the legal mechanism for open finance in the UK.
EU
The EU continues to work on its payments package, which includes revisions to the Payment Services Directive 2 (PSD2), which will become PSD3 and the introduction of a Payment Services Regulation (PSR).
South Africa
Yodlee is eagerly awaiting the publication of the Financial Sector Conduct Authority’s (FSCA) position on open finance. Their decision will set the groundwork for regulators’ views on how open finance firms should conduct themselves when sharing data between companies. This will be a big step forward for open banking in South Africa and will shape and influence how Yodlee interacts with banks, consumers, and other financial institutions.
India
Envestnet | Yodlee continues to operate as an Accredited Account Aggregator through the Reserve Bank of India and is closely monitoring open banking developments. We remain excited for the development of open banking in India and look forward to deepening our relationships with policymakers, financial institutions, and regulators.
Australia
The Australian Treasury produced three design papers in 2023 highlighting upcoming changes to the Consumer Data Right (CDR) rules, which may go into effect in early 2024. Yodlee responded to consultations in October, which included CDR rules on operational enhancements, user experience changes, and screen scraping guidance. The design papers and consultations are indications that the government is interested in supporting small businesses with streamlined and simplified CDR consent rules that increase adoption and drive the future of open finance in Australia. Yodlee welcomes the continued interest and progress from the government as we look to build out the most consumer friendly version of CDR.
New Zealand
New Zealand’s Ministry of Business, Innovation, and Employment (MBIE) released the draft Customer and Product Data Bill in June outlining proposed open finance regulation. Yodlee responded to consultations last July and provided input on the government’s proposal. Yodlee is excited to see progress on open finance in New Zealand and we continue to monitor progress on the finalization of this bill.
Unlocking open banking and open finance opportunities
At Yodlee, we continue to push for the introduction and development of open banking and open finance to encourage financial wellness for all. In 2023, we were thrilled to see this mission progress around the world - and we’re looking forward to more steps forward this year.
Are you interested in learning more?
Watch our Open Banking Around the World webinar
Contact us to discuss open banking policies and opportunities in your region
