Name: Envestnet Yodlee at Money20/20 USA 2023 – Delivering open banking in the US
Uploaded: 2024-01-02T14:03:00.177Z
Duration: 1291.62
Description: At the Money20/20 USA 2023 conference in Las Vegas, FinTech Futures sat down with Envestnet Yodlee’s President Farouk Ferchichi and Head of Governance, Risk and Compliance Lisa Novier to discuss the recent proposals by the CFPB to accelerate the shift to open banking in the US and how financial services firms can avoid being left behind.

4-Envestnet Yodlee V4.mp4

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ENGLISH

Hi, I'm Heather Sugg, here for
Fintech Futures at Money2020USA.

Part of the talk of the town at this
show so far has been around open banking,

with the CFPB announcing new standards
coming into this show, and what is

I'm here, joined by the best people to
speak to the subject, Investment Yodlee.

Lisa Novier, I'm the Head of Governance,
Risk, and Compliance for Yodlee.

Spend a lot of time working on Open
Banking and really excited about what's

Yeah, Farouk Ferchichi, and I
am the president of Yodlee and

including other things, I I worry
so much about Open Banking as well.

Before we get down into the details tell
us a little bit about, it's hard, I know,

but everything that Investment Yodlee
is doing and the scope that you control.

My role is making sure that we have
governance around the Open Banking

Framework and that we're compliant in
all the jurisdictions that we operate in.

Today we have licenses to operate
in Australia, the UK, and now we're

going to have to comply with the
requirements in the US, and we also

It's very exciting to see the regulation
finally come out like a draft in the

United States, but There are very
significant changes across all of

those jurisdictions and managing those
from day to day and making sure that

everybody across the organization
understands what they need to do.

And strategically from a Yodlee just
management point of view from my

perspective as well is that we're
pretty excited about this open

banking thing because there's a lot of
outstanding promises around delivering

this open banking infrastructure that
will enable this open finance which

has given people at all segments,
income, background, access to equity

And I think this is the first step and
we're excited about it because it's the

right thing to do for the consumer but
also it's good for business as well.

You've been well positioned
for the things to come.

With that said, Lisa,
this is probably for you.

Will you give us an overview of
the news that has come out and

I think the CFPB really took the input
from the industry very seriously, and

it does, a lot of the regulation mirrors
what's happening in the industry today.

Truly excited to see the continuation
of market led standards from a

technical perspective, because
that is really very important.

You don't see that in Australia
or in the UK or the EU and it has

given the US the ability to be very
agile in updating and modifying our

standards to meet customer expectations
as well as like market demands.

And so we've been able to prioritize
different use cases based on

the value to the consumer versus
complying with what the regulatory,

So I think that's
critically important piece.

The second piece is the
scope is a little more.

More narrow than we had hoped because
we are fueling use cases across wealth,

insurance, small medium business
and the regulation is very narrow

And that's where the, where they've
started in most other jurisdictions.

Excited to see that they also, the
CFPB also said they're interested in

That, I think is really
good from that perspective.

Those are, I think, like the really
key points that we were looking for

and making sure that the ecosystem
continues to grow and not go backwards.

Looking forward to continuing to
have conversations with the CFPB

And also looking forward to we've been
doing this for 20 years and we've been

advocating that whole time for consumers
to have this right, so to actually see

it written on paper is truly, it's been a
very exciting week from that perspective

and everybody wants to know what's going
on, what are the good points, where

are the obstacles and also, I think
the, ruling has given us a little bit

more of a framework in terms of what
are the expectations that regulators

have of us for consuming that data in
the ecosystem and on sharing it to our

We've done a lot of work to
help financial institutions feel

as a data aggregator and, but of
course, having something in writing

from a regulatory institution
really helps our data providers in

terms of understanding their role,
our role, and managing that risk.

Also, that, I think it was
good from that perspective.

The writing has been on the wall,
but having a level of detail to move

forward, it gives a sense of security,
and it gives us a movement to go after.

How do you feel that the industry
will be prepared now that

So I think I think the CFPB
did a good job there as well.

So they created a balance between
a sense of urgency to move to

APIs and enough time for smaller
institutions to get there, right?

So six months for our largest, all the
way to four years for our smallest.

And if you look at what's currently
what the current system looks

like, most of the larger financial
institutions already have their APIs

ready, they're already deployed,
so the six months I think is fair.

And then giving the four years for
the, those smaller institutions to

get there is enough time for them
to upgrade their technology in

I think that's really good progress
and the CFPB I think has very

strongly said that they want
everyone to get there, right?

It's a win-win, I think for the consumer.

FinTech Futures

Best Practice

At the Money20/20 USA 2023 conference in Las Vegas, FinTech Futures sat down with Envestnet Yodlee’s President Farouk Ferchichi and Head of Governance, Risk and Compliance Lisa Novier to discuss the recent proposals by the CFPB to accelerate the shift to open banking in the US and how financial services firms can avoid being left behind.