Consumer Financial Data Rights Group (CFDR), a new organization that was created to defend consumers’ access to their data and fuels innovation in the fintech industry, announced on Tuesday it has submitted a response to the Consumer Financial Protection Bureau’s (CFPB) request for information (RFI) in regards to consumer access to financial records.
As previously reported, the CFDR was established by a group of fintech companies, with founders of the group including leaders from Affirm, Betterment, Digit, Kabbage, Envestnet | Yodlee, Personal Capital, Ripple, and Varo Money. The group was notably launched to support the consumers’ right to unfettered access to their financial data. Its members are reportedly seeking to drive financial innovation by bridging the needs of consumers, banks, fintech innovators, and regulators; partner with banks to support unfettered access to consumer and small business data through a secure and open financial system; and promote consumer rights to access and share their financial data with third party companies that provide tools to enable better financial outcomes.
Speaking about the group’s creation, Max Levchin, co-founder of PayPal along with founder and CEO of Affirm, recently stated:
“Each consumer’s right to their own financial data is vital in helping to understand their finances and make the best saving and spending decisions,” said . “As a company we’re committed to helping customers make the best financial decisions and improve their financial lives through technology and improved flexibility, and having a complete picture of a customer’s financial picture is essential to achieving this. As a founding member of the CFDR, we’re committed to ensuring that all consumers have access to data which makes their financial lives better.”
The organization reported it supports the consumer’s right to access their financial data as codified by Section 1033 of the Dodd-Frank Act. Jon Stein, founder and CEO of Betterment, commented:
“Without clear regulatory requirements, the CFDR believes large banks and other financial institutions will continually seek to control access available for consumers to share their financial data, and restrict how that information may be used and shared. The CFDR supports the consumer’s right to decide which pieces of their own financial data they’re able to access and permission, which is critical to empowering consumers with the necessary tools to improve their financial outcomes.”
Anil Arora, CEO of Envestnet | Yodlee, added:
“As a group, we fully support the creation of an Open API framework to enable financial innovation and improve the financial health of consumers. Over 17 years ago, Envestnet | Yodlee pioneered direct and open connectivity to financial data via APIs. Now we strive to work collaboratively with financial institutions, fintech service providers, and regulators to provide consumers with access to powerful, technology-based tools that can help them improve their financial well-being.”