Why Data Isn’t a Zero-Sum Game in Payments

The fragmentation of the U.S. financial markets has created open-banking standards that are quite different from those found in Europe. In the United States, companies that enable permissioned access to account-level data have emerged to fill the gap in a banking sector marked by a lack of concentration, trying to bring cohesion to a disjointed system. Through open banking, they attempt to enable efficient operations by clients and seamless experiences for the customers of those businesses. Challenges remain, and regulation is coming.

This Javelin Strategy & Research report assesses the players in permissioned data, the aim of the services they provide, and what client banks and other financial services must consider when deciding which provider will make the best partner. It also takes a look at looming action by the Consumer Financial Protection Bureau and how that might affect the landscape. 

Key questions discussed in this report:

• How do permissioned data providers work and what differentiates the various players in the space?
• How does the fractured nature of financial services in the United States affect open banking?
• What could be the impacts of regulation on the operations of permissioned data providers? 
   

Companies Mentioned:

FDX, Finicity, Mastercard, MX, OAuth, PayPal, Plaid, Square, Trustly