CIBC enters into data access agreement with Utah-based MX.
The Canadian Imperial Bank of Commerce (CIBC) has entered into a data access agreement with Utah-based fintech company MX to provide its customers with a transparent way to share financial information.
MX’s agreement with CIBC is the first of its kind for the bank and the first in Canada for MX.
Using MX’s application program interface (API) technology, CIBC said its 11 million customers will no longer need to share their banking credentials to connect their banking information to third-party apps. MX partners, such as personal financial management, budget tracking, and credit building tools.
Founded in 2010 by Ryan Caldwell and Brandon Dewitt, MX combines open finance APIs with financial data to securely connect and verify data for hundreds of use cases, including account sign-up, movements of money and the subscription.
CIBC is the latest member of the Big Six Canadian banks to partner with a US-based FinTech company to launch what is essentially a private open banking app.
In June, RBC partnered with Yodlee and Plaid to allow its users to share their financial data across Yodlee and Plaid’s combined third-party app network of more than 7,500.
Together with another Utah-based company, TD partnered with Finicity in 2020 to set the stage for TD customers to request TD to transfer their financial data for the services they want to use , including applications supported by Finicity.
Montreal-based API developer Flinks launched its open banking environment product with National Bank of Canada last year, allowing FinTech startups to securely access consumer data from financial institutions without the need for data scraping. ‘screen.
National Bank announced a C$103 million commitment to Flinks in August last year, becoming a majority shareholder in the company. National Bank was the first financial institution to use Flinks’ open banking environment product.
RELATED: EQ Bank, Latest Bank to Join Flinks Open Banking Environment
Last month, EQ Bank implemented an integration with Flinks’ open banking environment offering called Outbound. This agreement should provide EQ Bank with the necessary framework to deliver open banking capabilities and launch new API data sharing methods.
While a handful of banks have entered into API partnerships since Canada began moving toward federally regulated open banking, the other members of the Big Six, Scotiabank and Bank of Montreal, have not. not yet publicly announced such data access agreements.
PwC Canada’s director of digital banking, Abraham Tachjian, was named head of open banking in the country in March, nearly a year after the release of the Open Banking Advisory Committee’s final report.
No open banking APIs or frameworks currently exist in Canada. However, open banking stakeholders told BetaKit earlier this year that the working groups were to start in July.
RELATED: RBC enters into open private banking partnerships with Plaid, Yodlee
Partner CIBC MX plays in a space that goes beyond public banking, calling itself a public finance company. Open finance, according to MX, is an extension of open banking. According to an MX blog post, open finance enables access and sharing of consumer data to more financial products and services beyond banking. This includes loans, consumer credit, investments and pensions. It also enables broader integration of financial data with non-financial industries, such as healthcare and government.
Financial Data Exchange Managing Director Don Cardinal published an article on Forbes in May, describing open finance as what open banking “wants to be when it grows up.”
According to LinkedIn, MX’s workforce is north of 900, with some, including its director of open finance Andrew Escobar, based in Canada. He works with financial institutions and FinTechs such as H&R Block, MetLife, Gemini, US Bank, WaFd Bank and BECU.
Escobar told BetaKit that MX’s deal with CIBC is the first of its kind for the bank and the first in Canada for MX.
Featured image courtesy of CIBC.
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