The drive to create a data security standard designed for digital financial services applications that use cloud computing, such as open banking, continues to gain momentum. AI Ltd, Codat Ltd., Skyflow Inc. and Very Good Security Inc. are the latest digital finance companies to join a group of financial technology and security compliance companies supporting the Open Finance Data Security Standard (OFDSS ).
The OFDSS standard, the first draft of which was published in November 2021, establishes a common framework for consumers data security, confidentiality and control. The standard aims to create robust, auditable data security guidelines that maintain alignment with common and relevant criteria found in other security frameworks, while providing clear requirements optimized for startups and early-stage enterprises. technology-driven, cloud-native growth, the ODFSS committee said. .
Other members of the OFDSS consortium include fintechs Flinks Technology Inc., MX Technologies Inc., Plaid inc.and Truework, as well as security compliance companies Drata Inc., Laika Inc., Secureframe Inc. and Vanta.
“The sensitive nature of financial data makes customer trust a major challenge for many businesses. Yet frameworks like PCI-DSS have proven that industry-accepted standards can become the key to earning and maintaining that trust in today’s security-conscious world,” said the CEO and co-founder of Anecdotes. , Yair Kuznitsov, in a prepared statement. “OFDSS will be a game-changer by establishing a foundation of trust.”
A new version of the OFDSS standard framework was recently released, updating the proposal to describe the application security controls that secure an enterprise’s software development lifecycle. “The OFDSS framework now includes 79 individual security requirements in 13 control areas that address common data security risks,” the OFDSS committee wrote in a blog post.
The OFDSS standard is intended to evolve over time to meet the changing needs of the digital financial services industry, integrate new technologies and mitigate emerging risks. Initial customer pilot programs are expected to take place by the end of the year.
“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,” Shano Fonseka, chief risk officer at Plaid, said in a prepared statement. “It provides a solid framework that helps fintechs improve security while enabling innovation, gives banks a level of confidence in which companies connect to their APIs, and most importantly, helps protect consumers.”