Open banking for credit unions: Transforming lending and member experience

Webinar Transcript 

Moderator: Brian Reshefsky, CEO of EDGE 

Panelists: 

• Paul LaRusso, CEO of Akoya 
• Kareem Saleh, Founder & CEO of FairPlay 
• Amy Demkey, SVP of Lending, Trius Federal Credit Union 

Introduction 

Brian Reshefsky: 

Hello and welcome to today’s webinar: Open Banking—Transforming Lending and Member Experience for Credit Unions. 

It’s fantastic to see such a strong turnout. The level of interest we’re seeing today reflects the growing momentum we’ve been seeing across the market—especially around open banking and cash flow underwriting. 

My name is Brian Reshefsky, and I’m the CEO of EDGE, a cash flow underwriting platform built by lenders for lenders. I’m honored to be your moderator for today’s conversation. 

Meet the panelists 

Paul LaRusso, CEO of Akoya 

Paul leads Akoya, the only fully API-based data access network, after 14 years at JPMorgan Chase where he served as Head of Connected Banking and Open Banking. Paul was instrumental in building out the infrastructure that gives consumers more control and security when sharing their financial data. 

Kareem Saleh, Founder & CEO of FairPlay 

Kareem is the founder and CEO of FairPlay, the world’s first Fairness-as-a-Service company. Prior to starting FairPlay, he held leadership roles at Zest AI and SoftCard and served in the Obama administration, where he focused on climate change and private investment. 

Amy Demkey, SVP of Lending, Trius Federal Credit Union 

Amy is a 22-year veteran of Trius Federal Credit Union. She’s been a driving force in shaping strategic initiatives that prioritize member-first service, innovation, and technology adoption, contributing significantly to Trius continued growth and success. 

Setting the stage

Brian Reshefsky: 

Let’s start with the basics. What is open banking? How did it come about? And what are its key benefits as it continues to evolve within the financial services landscape? 

Paul, I’ll start with you. 

What is Open Banking? 

Paul LaRusso: 

Open banking is essentially when a consumer or credit union member chooses to securely share their financial information with a third-party application of their choice. 

This could be: 

• Budgeting tools 
• Payment apps 
• Loan applications 
• Credit line requests 

While the term open banking feels new, the concept has been around for decades. Think back to when consumers would link their accounts to services like QuickBooks, TurboTax, or Quicken. But in the last 10 years, adoption has exploded. 

Why? Three main reasons: 

• Mass adoption of smartphones 
• Rapid growth of fintech apps 
• Consumers choosing digital-first financial engagement 

Visa did a study recently showing that 91% of Americans have linked their bank or credit union accounts to some third-party app. Among Gen Z, that number jumps to 96%. 

This is happening now. 

However, historically, data sharing was done through insecure methods like screen scraping—where consumers gave up their username and password, exposing all their account information. 

Open banking today is shifting to a much safer, API-based framework. With APIs: 

• Members control which apps access their data 
• They choose specific accounts to share 
• They can easily turn access on or off 
• Their credentials stay protected 

It’s about preserving choice and control for the members while ensuring their data is shared securely. 

Why should open banking be a priority for credit unions? 

Brian Reshefsky: 

Amy, I’d love to get your perspective first. You’re on the front lines working with members every day. Why should open banking be a priority for credit unions? 

Amy Demkey: 

For us at Trius, it was eye-opening to realize just how much of our members’ data was leaving our credit union — and we didn’t even know it. 

Fintech companies were accessing this data and using it to compete directly with us. 

We had to change our mindset: instead of playing defense, we needed to go on offense. 

Partnering with EDGE allowed us to do that. The possibilities are endless: 

• More lending opportunities 
• Better visibility into members’ financial lives 
• Tools to help improve members’ credit and financial wellness 

Ultimately, open banking helps us better serve our members — proactively and competitively. 

Kareem Saleh on why open banking matters 

Kareem Saleh: 

There are four main reasons credit unions should prioritize open banking: 

1. Competitive Advantage: It levels the playing field against big banks. 
2. Enhanced Member Experience: Real-time data powers faster loan approvals, personalized offers, and smarter financial solutions. 
3. Operational Efficiency: It removes friction like manual document uploads and reduces turnaround times. 
4. Alignment with Credit Union Values: Open banking helps credit unions serve underserved populations more effectively with innovative, inclusive product design. 

Additional perspective from Paul LaRusso 

Paul LaRusso: 

I completely agree with Amy and Kareem. Let me add two important points for credit unions to consider: 

1. Your members are already using open banking — whether you realize it or not. But today, they may not have visibility or control over which apps have their data. Giving them secure, transparent tools to manage this builds trust. 
2. Protecting your own infrastructure is critical. Without a secure, API-enabled front door for data sharing, you’re essentially leaving the back door open. That creates risks — like potential system downtime or data breaches — that could disrupt member experience. 

Moving to secure APIs helps mitigate these risks, protects your systems, and better protects your members. 

What’s most exciting about open banking for credit unions? 

Brian Reshefsky: 

Amy, I’ll come back to you. As you look at where open banking is headed, what excites you most about its potential for credit unions? 

Amy Demkey: 

Honestly — everything. 

We’ve always believed we have to meet members where they are. And today, they expect digital-first experiences. 

Open banking allows us to: 

• Streamline our loan process 
• Eliminate repetitive asks like income verification 
• Speed up approvals 
• Reduce friction 

It also gives us access to our members’ complete financial picture — whether they bank only with us or also have relationships elsewhere. 

For example: 

• We can see Buy Now Pay Later activity — even if it’s not yet on their credit report. 
• We can understand cash flow patterns and counsel members better. 
• We can see gig economy income for Uber drivers, servers, or others with non-traditional earnings.
• Our underwriters love it — because they can make better decisions and help members improve their financial habits.
• We even use open banking reports in collections — to see behavioral patterns and tailor our outreach. 

Paul LaRusso on internal benefits of open banking APIs 

Paul LaRusso: 

Another exciting aspect is that once you stand up secure APIs for third-party use — you can also use them internally. 

For example: 

• Lending teams can use deposit data to create personalized pre-approved offers. 
• You can streamline internal processes and credit decisions. 
• It accelerates innovation across your entire organization. 

Open banking APIs are not just about external use cases — they’re a powerful internal tool as well. 

Kareem Saleh on expanding financial inclusion 

Kareem Saleh: 

I’ll add that open banking unlocks powerful opportunities around financial inclusion. 

With cash flow data, credit unions can better serve: 

• Thin-file borrowers 
• Gig workers 
• Low-income households 

These are people often overlooked by traditional credit scoring models. 

Plus, with real-time financial insights, you can: 

• Offer smarter, faster, and fairer credit decisions 
• Deliver highly personalized product recommendations 
• Proactively support members before they fall behind 

Most importantly, open banking helps credit unions differentiate themselves by delivering modern digital experiences without compromising their core values of trust, transparency, and community. 

Challenges in implementing open banking at credit unions 

Brian Reshefsky: 

Amy let’s talk about real-world implementation. What challenges did Trius Federal Credit Union face when adopting open banking, and how did you overcome them? 

Amy Demkey: 

The biggest initial challenge was managing all the data that came our way. 

We had to figure out: 

• What data is useful? 
• How do we use it effectively? 
• How do we communicate the value of this process to our members? 

Change is always hard — especially for lending teams used to relying only on credit reports. It took training and education. 

But honestly, now that we’ve gone through it, I can’t imagine going back. Our members don’t push back on it anymore, and our team wouldn’t want to operate without it. 

Another key lesson: Start small. 

We began with simple income verification, then gradually expanded to identifying new loan opportunities, understanding buy now/pay later usage, and improving collections strategies. 

Working with a trusted partner like EDGE was crucial in helping us navigate these bumps in the road. 

Kareem Saleh: Common implementation challenges 

Kareem Saleh: 

There are 5 common challenges credit unions face: 

• Technology Integration: Many credit unions operate on legacy systems that may not easily support open banking APIs. Modernizing infrastructure requires investment and operational change. 
• Data Security & Privacy: Handling member-permissioned financial data comes with heightened cybersecurity and legal responsibilities. Clear member communication is critical. 
• Member Education & Consent: Many members aren’t familiar with what data-sharing involves. You have to earn their trust by explaining the benefits clearly. 
• Vendor & Partnership Management: Open banking usually involves working with third-party service providers. Choose partners carefully and ensure compliance with data use standards. 
• Regulatory Uncertainty: Rules like Section 1033 provide guidance, but the regulatory landscape is still evolving. Credit unions must stay agile. 

Paul LaRusso: The organizational shift 

Paul LaRusso: 

One thing I’d add — adopting open banking requires a cultural shift inside your organization. 

You’re effectively building a new channel — like online banking or mobile banking — except this one connects to third parties. 

It touches: 

• Technical teams 
• Operational teams 
• UI/UX design 
• Risk and compliance 
• Member communications 

It’s a complex initiative, but thinking about it through the lens of partnerships is key. No one needs to build this entirely from scratch — working with the right partners will accelerate your path and minimize risks. 

Final advice to credit union leaders on open banking 

Brian Reshefsky: 

Let’s close out the main discussion with final advice for credit union leaders. Paul, I’ll start with you. 

Paul LaRusso: 

My advice is threefold: 

1. Protect Your Members and Your Systems: Members are already using open banking — but often through insecure methods like screen scraping. Moving to secure APIs protects both your members and your credit union’s infrastructure. 
2. Harness Data to Compete: Once you have access to high-quality transaction data, it unlocks new opportunities to improve underwriting, lending decisions, and personalized experiences. 
3. Be Aware of Regulatory Timelines: Regulation is here — specifically CFPB’s Section 1033 Rule. Any credit union over $850 million in assets will soon have to stand up secure open banking interfaces over the next few years. Start preparing now. 

Kareem Saleh: 

I’d offer five pieces of advice: 

1. Pilot, Then Scale: Start with a narrow use case like income verification or account monitoring. Build internal buy-in and member enthusiasm before expanding. 
2. Invest in Technology Partnerships: Building open banking infrastructure in-house is costly and difficult. Partner with fintech experts to bridge gaps and avoid taxing your IT team. 
3. Invest in Cybersecurity: Data security is non-negotiable. Build trust by protecting your members’ sensitive information. 
4. Prioritize Consent and Transparency: Make it crystal clear what data is being shared, why, and how it benefits your members.
5. Use Data to Deepen Relationships: This is about more than technology — it’s about serving your members better and creating long-term loyalty. 

Amy Demkey: 

My advice is simple: Don’t wait. 

Open banking isn’t optional — it’s where the industry is headed. 

Credit unions need to: 

• Protect their members 
• Fight back against fintechs by offering digital-first experiences 
• Partner with trusted providers 
• Educate both members and employees about what open banking is and why it benefits them 

This is about staying competitive, staying relevant, and staying member focused. 

Audience Q&A highlights 

Brian Reshefsky: 

We had some excellent questions come in. Let’s touch on a few of them. 

What is the unique predictive value of cash flow data? (Kareem) 

It provides real-time, granular insight into a consumer’s finances. 

• Captures activity missed by credit reports (e.g., Buy Now Pay Later, gig income, earned wage access). 
• Reveals spending habits and financial management behaviors. 
• Essential for underwriting thin-file or no-file consumers. 

It’s assumption-free data — unlike traditional credit report variables.

How does cash flow data work alongside traditional credit data? (Amy) 

At Trius, we always pull credit reports first. But we put more emphasis on cash flow data when making lending decisions. 

We look for things like:  

• How often does a member go negative? 
• How long do they stay negative? 
• How are they managing their budget in real life? 

It provides a much clearer, current picture of a member’s financial reality. 

What is first-party data and why does It matter? 

Paul LaRusso: 

First-party data refers to the data your credit union already has — deposits, transactions, member behavior — but which may not be easily accessible across departments. 

With secure APIs, you can: 

• Expose this data for internal use (e.g., lending, marketing, underwriting) 
• Create smarter offers and pre-approvals 
• Deliver faster, more personalized experiences 

It’s about unlocking your own data more effectively. 

Brian Reshefsky: 

Amy, are you using both on-us and off-us data in practice? 

Amy Demkey: 

Absolutely. If a member banks with us, we see all that core data. But we also use secure open banking links to pull in data from other institutions like Wells Fargo. 

That gives us a full 360-degree view of the member’s financial life — and helps us serve them better, whether they bank solely with us or not. 

What are the key compliance considerations around open banking and CFPB Section 1033? 

Kareem Saleh: 

There are several, and they’re important: 

• Adverse action notices: If you’re using cash flow data in credit decisions, you must clearly explain why a member was declined or offered different terms. That may require mapping new reasons to regulatory codes. 
• Fair lending: Cash flow data can support inclusion, but you must test for disparate impact. Make sure your models don’t inadvertently introduce bias. 
• Consent scope: Be transparent. Are you collecting data at one time or ongoing? Is the member fully informed? Make sure their consent aligns with your use case. 
• Avoid sensitive variables: You might see things like gambling, medical spending, or adult entertainment. Even if predictive, these raise reputational and privacy concerns — be cautious. 
• Data minimization: Only collect what’s necessary. Discard anything irrelevant or excessive to reduce compliance risk.
• Documentation and auditability: Track everything — where data came from, how it’s processed, and how it’s used in decisions. This helps you stay compliant and transparent. 

How should credit unions prepare for Section 1033? 

Paul LaRusso: 

Section 1033 of the Dodd-Frank Act requires financial institutions over $850M in assets to stand up secure, consumer-permissioned open banking interfaces. 

This rule is already active as of January. 

Credit unions must: 

• Make account and transaction data accessible via API 
• Provide clear terms and developer documentation 
• Allow members to permission data to third-party apps 

Start planning now if you haven’t already. 

On the flip side, when you consume held-away data from other FIs, ensure: 

• A seamless experience for the member 
• Clear value communication  (e.g., “Link this account to speed up your loan approval”) 
• High data quality and connection reliability from your partners 

Closing remarks 

Brian Reshefsky: 

That wraps up our main session! A big thank you to our panelists — Paul, Kareem, and Amy — for sharing their insights and experiences today.