CIBC Partners with U.S. Fintech to Enable Open Banking API

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Betakit | Charlize Alcaraz | Aug 8, 2022

The Canadian Imperial Bank of Commerce (CIBC) has entered a data access agreement with Utah-based FinTech company MX to provide its clients a seamless way to share financial information.

By using MX’s application program interface technology (API), CIBC said its 11 million clients will no longer need to share their banking credentials to connect their banking information with third-party applications that partner with MX, 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 to and verify data for hundreds of use cases including account opening, money movement, and underwriting.

CIBC is the latest member of Canada’s Big Six banks to partner with a United States-based FinTech firm to launch what is essentially a private application of open banking.

See: CIBC Innovation Banking Announces $1.5 Billion Growth Capital Commitment

CIBC partner MX plays in a space that is beyond open banking, calling itself an open 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 wider integration of financial data with non-financial industries, such as healthcare and government.

Financial Data Exchange managing director Don Cardinal published an article through Forbes in May, describing open finance as what open banking “wants to be when it grows up.”

According to LinkedIn, MX’s workforce sits north of 900 people, with some, including its director of open finance Andrew Escobar, based in Canada. It works with financial institutions and FinTechs such as H&R Block, MetLife, Gemini, U.S. Bank, WaFd Bank, and BECU.

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