Open Banking: CFPB Looks for Feedback on Consumer Access to Financial Records

The Consumer Financial Protection Bureau (CFPB) has issued an advance notice of proposed rulemaking (ANPR) requesting information related to consumer access to financial records. In brief, the CFPB is asking interested parties as to how it might most efficiently and effectively develop regulations to implement Section 1033 of the Dodd-Frank Act, which provides for consumer rights to access financial records.

Somewhat similar to the general concept of Open Banking and GDPR (Europe), the rulemaking will address consumers’ use of financial products and services, and data generated by those consumers.

Consumer access to these data may allow consumers to manage their financial accounts and can enhance consumers’ control of their financial matters.  Consumers may realize these benefits by authorizing third parties to access these data on their behalf and allowing those third parties to deliver new or improved financial products and services.  Use cases for consumer-authorized data include personal financial management, making and receiving payments, assisting consumers with improving savings outcomes, underwriting credit, and many other services.

While consumer access to financial records can enable the development of innovative and beneficial consumer financial products, it can also present consumer risks.

The CFPB seeks comments and information on costs and benefits of consumer data access; competitive incentives; standard-setting; access scope; consumer control and privacy; and data security and accuracy.

Comments are due within 90 days after the ANPR’s publication in the Federal Register.

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