The American Fintech Council (AFC) has issued a statement on the bipartisan letter sent by a group of House Representatives asking the Consumer Financial Protection Bureau to adjust requirements pertaining to control of consumer data along the lines of Open Banking. The AFC says they share “concerns regarding the proposed limitations to secondary uses of consumers’ financial data.”
The AFC says, “It is crucial that the CFPB allows for the responsible secondary use of consumers’ permissioned data, especially when that data is used to provide additional products or services that are beneficial to the consumer and when the permissioned data helps to improve the resilience of the financial services industry.”
In brief, the current position of the CFPB is too rigid and may temper Fintech innovation.
“AFC fully concurs with the Congressmembers’ perspectives that the proposed rule’s restrictions “could discourage the advancement of innovations that benefit consumers and small businesses by curbing basic product improvements and the development of tools to fight fraud.” Thus, in the interest of encouraging innovations for the benefit of both consumers and the financial services industry, we stand aligned with the Congressional signatories in their recommendation for the CFPB to revise provisions of the proposed rule regarding the secondary use of consumer permissioned data.”