Thanks to technology, personalized financial tools are making people’s lives easier, giving them more flexibility and access to lower-cost options. Consumers are increasingly turning to digital tools to bank, invest, budget, and send money. More than three-quarters of consumers say that the more they use digital tools to manage their money, the more they trust them.
Today, consumers want to use digital tools more, not less. Critical to these digital, fintech innovations is “open finance,” or consumers’ right to securely control and share their own data and finances. Open finance gives consumers greater transparency and control by allowing them to connect their bank accounts and other sources of financial information to the apps and services they choose. That could be a budgeting app, an investment tool, or a platform to send money to friends and family. The Consumer Financial Protection Bureau has an opportunity through its Section 1033 rulemaking to establish the personal financial data rights that underpin open finance, allowing for greater consumer choice, personalization, and transparency.
Data privacy is a top priority for consumers of financial services. People want to know how their personal financial information is being used and what steps financial services providers are taking to protect their privacy. Eighty-three (83) percent of consumers want to control where their data goes, rather than having companies make those choices for them.
Financial technology companies are building a financial future that is not only digital, mobile, and flexible but also safe, transparent, and trustworthy. The Financial Technology Association (FTA) represents innovative, digitally-native financial leaders pioneering responsible privacy practices for digital finance. FTA’s members use strong authentication and authorization security techniques to protect consumers’ data, fight fraud online, and help consumers avoid scams.
This Data Privacy Week, we are calling on regulators to put consumers in control of their data. Learn more about FTA’s advocacy for personal financial data rights and how fintech industry leaders use technology to combat fraud, safeguard consumer financial information, and protect privacy.