Conventional wisdom might consider open banking to be a strictly European phenomenon. After all, the rise of the Revoluts of the world – the challengers and neobanks, the digital upstarts who promise to shake up financial services – is on the other side of the pond. And PSD2, of course, has its roots in Europe.

But the attempt to accelerate the era of the killer app here in the United States – where a continuum of services sits under a single digital umbrella, accessible through a single digital gateway – is getting additional tailwinds. Most notably, perhaps, this has been shown by the rise of data aggregators such as Plaid and Finicity (the latter was acquired by Mastercard).

If the old adage that you put your money where you talk is true, then it looks like a number of big names in finance are embracing open banking with open wallets – especially Plaid, which comes out of a scuttled merger. with Visa.

See also: Visa opts for acquisition of plea, cites complex litigation

As reported on Tuesday August 17, Plaid said in a blog post that it received funding from JP Morgan Private Capital Growth Equity Partners and existing investor Amex Ventures, as part of a Series D capital raise. previously announced.

Read more: Plaid raises $ 425 million from Series D at a valuation of $ 13.4 billion

The amount related to the most recent August announcement was not disclosed.

More Details: Plaid Raises Additional Series D Funding Led By JPMorgan, Amex

“They are historic companies that are intrinsic to the fabric of financial services and are important partners. The two Growth Equity Partners of JP Morgan and American Express will be essential in our efforts to enable strong financial results for consumers and drive innovation in the industry, ”Plaid said in the post.

JP Morgan and American Express can be seen as part of the ‘old guard’ of finance which, along with a number of other mainstream players, is now moving to the next level of data sharing and giving consumers control over the internet. how this data is used.

Rear winds of the Biden administration

Part of the change is encouraged by the government. The Biden administration issued an executive order setting out suggestions (not requirements) that the Consumer Financial Protection Bureau (CFPB) should issue rules related to data access. These rules, as they take shape, would help determine how consumers can access their bank details and how they might transfer that information from bank to bank or use third-party data.

In an interview with PYMNTS earlier this year, Glenn Geil, senior vice president and head of payments for the Americas at Endava, said data portability goes beyond getting a PDF of transactions from the previous year and sending this file to a mortgage lender when applying for a loan. “There has to be a service that can store this data and combine it with what’s going on right now,” he said.

You might also like: Biden’s banking order supports data accessibility, but portability debate remains unresolved

Part of this means working with data aggregators to link banks to consumer data, taking into account consumer authorization, where data can be pulled from hundreds or even thousands of sources. In an amplified signal that banks are embarking on the collection, dissemination and sharing of data – and the associated risks – a number of banks have participated in a risk assessment bid test of simplified data sharing from The Clearing House.

See also: The Clearing House Deploys Data Sharing Assessment for Applications and Aggregators

The movement that banks need, to quote an old Beatles tune, rests on their shoulders. As detailed in a recent tracker, a majority of consumers surveyed said they would sign up for open bank accounts, especially with tech names like Amazon and Google.

Read more: Deep dive: Why open the door to data aggregation, digital privacy is the key to advancing Open Banking



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