Gigamon: Improving Network Visibility for Financial Services
Cybersecurity Europe Fintech Ecosystems Trending

Updated Open Finance Data Security Standard Gains Four More Supporters

The newest additions to the consortium will join an existing network of supporters that includes fintechs Flinks, MX, Plaid and Truework, and security compliance companies Drata, Laika, Secureframe and Vanta.

OFDSS_Social_assets_kh_082222-LinkedIn-group (1)

Following this, the updated version 1.2 of the framework was recently published, outlining further application security controls that secure a company’s software development lifecycle.

The OFDSS framework now includes 79 individual security requirements across 13 control domains that address common data security risks. These requirements are contextualised with implementation guides, along with audit steps for ensuring compliance.

A needed standard for a changing financial landscape

The availability of cloud infrastructure and enabling technologies that have made it easier for companies to deliver digital financial services at scale has enabled digital finance innovation to thrive.

As a result, thousands of new apps and services have emerged over the last decade, representing a significant change in how financial services are delivered, and also the profile of companies that provide them.

However, existing data security standards were not designed specifically for modern, cloud-native delivery models or the resource constraints of early stage companies.

OFDSS was created to address this gap and create strong, auditable data security guidelines that maintain alignment with common and relevant criteria found in other security frameworks such as SSAE18 TSC for Security and NIST CSF, while providing clear requirements optimized for cloud-native, technology-focused startups and growth-stage companies.

Shano Fonseka, head of risk at Plaid.
Shano Fonseka, head of risk, Plaid

“The industry is rallying around OFDSS because it will help raise the bar for data security in the fintech ecosystem at a time when the pace of innovation is accelerating,” said Shano Fonseka, head of risk at Plaid.

“It provides a strong framework that helps fintechs improve security while enabling innovation, gives banks a level of confidence about the companies connecting to their APIs, and, most importantly, helps protect consumers.”

“Trust is essential in the banking industry,” added Kieran Hines, principal analyst at Celent. “Accordingly, data security is at the heart of the open finance ecosystem. The OFDSS plays an important role in supporting the creation and adoption of new services by providing a clear and rigorous security framework for market participants to follow. This is to the benefit of banks, fintechs, and the customers they serve.”

Author

  • Tyler is a fintech journalist with specific interests in online banking and emerging AI technologies. He began his career writing with a plethora of national and international publications.

Related posts

Consumer Robotics Shipments to Reach 74 Million by 2024, as Coding Tools Become Ubiquitous

Mark Walker

PayID Launches New Updates for Developers

Polly Jean Harrison

Client Reporting Automation – What Should Be Considered Before Embarking on the Journey

Jason Williams