Model Data Access Agreement

Intended and Permitted Use of Data. I agree to use [system name] only for legitimate business purposes and limit my use to my established business responsibilities. In collaboration with its member banks and in agreement with fintechs, TCH has developed a model agreement that banks and data aggregators/fintechs can use as a reference to facilitate the development of API-related data exchange agreements. The use of the Model Convention is entirely voluntary and the agreement should be amended if circumstances warrant. In addition, the model agreement avoids taking positions on commercial terms that must be negotiated strictly between the parties. However, the Model Convention provides a potential basis for common, generally accepted concepts to which both parties can refer; reduce the need to define and negotiate the same conditions each time a bilateral data access agreement is concluded if they so wish. TCH`s release of the Model Agreement reflects efforts to implement open, market-oriented banking in the United States that take into account the guidelines of companies such as the CFPB and the U.S. Treasury. This contrasts with the TERMS AND CONDITIONS OF SALE FOR API users in the UK, which are a standard form of agreement that can be entered into by API users (defined as individuals or organisations that choose to access open banking APIs). These terms and conditions of sale are the product of open banking Limited UK`s top down regulatory approach (Open Banking) and govern the relationship between open banking and each API user. In addition, it is a new milestone in the TCH “Connected Banking” initiative, which aims to facilitate innovation and customer control, as well as the secure exchange of bank data.

On 12 November 2019, The Clearing House (TCH) published a model agreement as part of TCH`s Connected Banking Initiative. The model agreement will serve as the basis for data exchange agreements between banks and fintechs. Among the specific provisions and concepts of the model agreement are the following: the model agreement aims to provide a common basis of universally recognised conditions as a starting point, in order to facilitate data access agreements between banks and fintechs and to reduce the need to negotiate the same conditions each time an agreement is concluded. The use of the agreement is voluntary and the parties may independently negotiate any elements they deem appropriate. “APIs have the potential to significantly exploit consumers, but the long process of reaching an agreement can become a bottleneck for the introduction of the API,” Hunter added. “APIs have the potential to significantly exploit consumers, but the lengthy process of reaching an agreement can become a bottleneck for the introduction of the API,” Hunter said. . . .

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