Insights from Open Finance Leaders Anil Mahalaha (Akoya) and David Whitcomb (MX)

Guest Speakers David Whitcomb and Anil Mahalaha

In the ever-evolving landscape of Open Finance, industry leaders like Anil Mahalaha and David Whitcomb play a pivotal role in shaping its future. Recently, we had the opportunity to hear from these experts about their journeys, insights, and the state of Open Banking today. Here's a detailed look at the conversation between Anil and David.

Meet the Experts

Anil Mahalaha: Anil is the Chief Evangelist at Akoya, a company he helped found approximately five years ago under the umbrella of Fidelity Investments. With over 35 years of experience in financial services, Anil has an impressive background, including a 20-year tenure at Fidelity and a decade at Liberty Mutual. He has been instrumental in developing APIs for Open Banking and was one of the original authors of what is now the Financial Data Exchange (FDX) API.

David Whitcomb: David is the VP of Product Strategy and Partnership at MX Technologies, a leading company focused on account aggregation, financial wellness, and data enhancement. With 16 years in financial services, David started his career at a credit union and has since worked with major players like Fiserv before joining MX. His experience spans developing online and mobile banking applications, integrating aggregation services, and building development teams.

What Do Akoya and MX Technologies Do?

Akoya: Akoya is a pioneering platform that facilitates secure and transparent data access between financial institutions and fintechs. The company was established to streamline the data-sharing process, eliminating the need for screen scraping by providing a secure API-based data access network. Akoya acts as a neutral intermediary, ensuring that data is shared only with the explicit consent of consumers and that all transactions are compliant with the highest security standards. By doing so, Akoya promotes a more secure and efficient Open Banking ecosystem.

MX Technologies: MX Technologies is a leader in actionable intelligence, enabling financial providers and consumers to do more with financial data. MX provides end-to-end solutions for financial institutions and fintechs to connect to, understand, and act on customers’ financial data.

How Are They Different?

While both Akoya and MX Technologies operate within the Open Finance space, their core focuses and approaches differ:

• Akoya: Primarily acts as a secure conduit for data sharing between financial institutions and FinTech's. Its focus is on ensuring the security and transparency of data access, minimizing risks associated with data sharing, and eliminating the need for less secure methods like screen scraping.

• MX Technologies: concentrates on turning raw data into personalized, actionable insights that help consumers build their financial strength. MX takes data from multiple sources, cleanses and categorizes it, and provides tools and insights to improve financial wellness with its connectivity, data, and experience solutions. Rather than identifying and individually transitioning aggregators, MX allows financial institutions and fintechs to work directly with the aggregators and remove them from scraping an organization.

The Evolution of Open Banking and Open Finance

When discussing Open Banking or Open Finance, one of the primary use cases that comes to mind is account aggregation. This process involves collecting information from various financial accounts and presenting it in a unified view. According to David, account aggregation is crucial for providing consumers with a comprehensive understanding of their financial health.

Anil highlighted the journey of Open Banking from its nascent stages when there were no standards like FDX. He recalled the early days at Fidelity Investments when they began writing APIs without any standardization. This effort laid the groundwork for what would become the FDX API, which Anil helped develop and promote through the Financial Data Exchange.

Impact and Benefits

Both Anil and David emphasized the transformative impact of Open Banking on consumers and financial institutions. By enabling secure and seamless access to financial data, Open Banking fosters innovation, competition, and better financial management. Anil pointed out that the creation of standardized APIs has been a game-changer, allowing for interoperability and consistency across the industry.

"Open Banking is not just about technology; it's about building trust and transparency between financial institutions and consumers. By developing standardized APIs, we are creating a secure and efficient ecosystem that empowers consumers to take control of their financial data." - Anil Mahalaha

David added that Open Banking has also significantly enhanced financial wellness. With aggregated data, consumers can gain insights into their spending habits, savings patterns, and overall financial health, leading to more informed decisions and better financial outcomes.

Future Directions Of Open Finance

Looking ahead, both Anil and David are optimistic about the future of Open Finance. They foresee continued advancements in API standards, increased collaboration among financial institutions, and broader adoption of Open Banking principles worldwide. The goal is to create a more inclusive financial ecosystem where consumers have greater control over their data and financial services are more tailored to individual needs.

"The future of Open Banking lies in continued innovation and collaboration. As we advance API standards and broaden adoption, we are moving towards a more inclusive financial ecosystem where consumers have greater control and financial services are more personalized and responsive to individual needs." -David Whitcomb

Conclusion

The conversation with Anil Mahalaha and David Whitcomb provided valuable insights into the past, present, and future of Open Banking. Their extensive experience and forward-thinking perspectives underscore the importance of innovation and collaboration in driving the industry forward. As Open Banking continues to evolve, leaders like Anil and David will undoubtedly remain at the forefront, guiding the way towards a more open and connected financial world.

See the complete OpenFinity Launch Event session with Anil and David below