Today, Secureframe, along with financial technology and security compliance companies, announced the Open Finance Data Security Standard (OFDSS), a proposed framework of requirements that address security risks commonly encountered by emerging financial technology companies that handle sensitive information. OFDSS will help instill even greater confidence in data holders, including financial institutions, that the fintech ecosystem has robust protections in place for consumer data, which ultimately protects consumers.

Raising the bar for data security among emerging companies and fostering innovation

Digital finance innovation has thrived due to the availability of cloud infrastructure and enabling technologies, like Secureframe, that have lowered barriers to entry for delivering digital financial services at scale. As a result, thousands of new apps and services have emerged over the last decade, representing a significant change in how financial services are delivered, and also the profile of companies that provide them.

However, existing data security standards were not designed specifically for modern, cloud-native delivery models or the resource constraints of early-stage companies. OFDSS was created to address this gap and create strong, auditable data security guidelines that maintain alignment with common and relevant criteria found in other security frameworks such as SSAE18 TSC for Security and NIST CSF, while providing clear requirements optimized for cloud-native, technology-focused startups and growth-stage companies. 

What does OFDSS cover?

The OFDSS is designed to be a living document that will evolve over time to meet the needs of the industry, incorporate new technology, and mitigate emerging risks. Currently, it establishes 63 individual security requirements across 12 control domains that address common data security risks encountered by early-stage digital finance companies. The requirements are contextualized with implementation guides, along with high-level audit steps for ensuring compliance. 

They are not intended to exhaustively address all data security risks that may be material to any particular organization. However, these requirements address security risks that are commonly encountered by emerging financial technology companies when processing or storing sensitive information. Companies with mature and audited information security programs that have the ability to provide reasonable assurance about the effectiveness of those programs are likely already meeting the requirements captured in this standard. 

Companies who are subject to OFDSS can work with Secureframe to help evaluate their practices against the criteria, help address challenges, and provide audit services.