MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–The Open Financial Exchange (OFX) Consortium last Thursday released OFX 2.2 for public comment. The updated specification offers financial institutions safe and secure data aggregation as well as enhanced data element support which includes support for credential-less OAuth or similar token-based authentication models.
The explosion of fintech apps using data aggregation in recent years has led financial institutions to explore more efficient and higher quality data access methods for their account holders. With OFX 2.2 compliant servers and a tokenized authentication solution, financial institutions can now direct aggregators and financial apps to access account holder data through dedicated servers using temporary access tokens. Additionally, new data tags in statement messages such as interest rates and last payment amount will enable financial institutions to supply enhanced data to account holders.
OFX has been the dominant direct API for banks to provide data to financial applications since 1997. It is actively deployed at over 7,000 financial institutions, and the remaining institutions have access to certified OFX servers via major technology providers and systems integrators.
With these updates, the OFX 2.2 specification delivers a secure, robust, and proven standard for financial institutions seeking to stand up a data API for aggregators and financial apps.
With implementations at over 7,000 financial Institutions, OFX is the most widely deployed financial data sharing standard. “OFX helps the financial industry reduce friction so customers get a better experience with their chosen accounting or fintech applications, and more reliable access to their financial data. OFX has enabled Silicon Valley Bank to integrate with fintech partners in a secure and scalable way to provide higher quality data to mutual clients,” said Bruce Wallace, Chief Digital Officer at Silicon Valley Bank.
“At Square 1 (a division of Pacific Western Bank), our goal is to empower our clients to interact with us in ways that are intuitive to them – whether it’s online through their desktops or mobile devices, through 3rd party applications or via direct connections. Implementing OFX 2.2 gives us a well-tested and easy to use protocol, as well as the confidence that we are improving our customers’ experience with a secure and high quality data connection,” said Arthur Wasson, Head of Venture Capital Services, Square 1 Bank.
For any financial institution without an existing OFX server, standard off-the-shelf implementations are available from industry leading systems integrators and core systems providers. For financial institutions with existing OFX installations, an upgrade to OFX 2.2 maintains backwards compatibility. Broad deployment across top financial institutions and financial applications coupled with the durability of the standard, make OFX 2.2 an attractive implementation option.