In a comment letter, FTA urges the CFPB to focus on consumer-centric implementation of open banking, including allowing the broader use of data to benefit consumers.
WASHINGTON, D.C. – The Financial Technology Association (FTA) today filed a comment letter in response to the Consumer Financial Protection Bureau’s (CFPB) notice of proposed rulemaking on personal financial data rights, which will implement open banking under Section 1033 of the Dodd-Frank Act. The CFPB has stated that it aims to finalize the rule in 2024, formally establishing consumers’ right to control and securely share their financial data and accelerating open banking in the U.S.
“FTA applauds the CFPB’s move to finalize open banking rules that will give consumers greater control over their financial data,” said Penny Lee, President and CEO of the Financial Technology Association. “Personal financial data rights will help hundreds of millions of Americans benefit from affordable digital financial tools to spend, save, and manage their money. Establishing rules of the road for sharing consumer financial data will unlock greater innovation, improve consumers’ experiences, and ensure greater trust in the financial ecosystem.”
FTA’s comment letter urges the CFPB to foster competition and responsible innovation while preventing incumbent financial institutions from engaging in anti-competitive behavior that stops consumers from exercising their financial data rights. Specifically, FTA urges the CFPB to more broadly allow the secondary use of financial data to promote innovation and better consumer outcomes. Many commonplace data uses benefit consumers by informing product innovation, guiding research and development, and enabling personalized services that save consumers time and money. These uses should be permitted, subject to appropriate disclosures and additional safeguards.
FTA offers several other recommendations for the CFPB to take into account when finalizing the open banking rule, such as the need for standard-setting organizations to include more diverse viewpoints including financial technology representatives, an appropriate timeframe to operationalize 1033 requirements effectively, and greater definitional clarity regarding covered entities.
Click here to read FTA’s full comment letter. For more information on the benefits of open banking to consumers and financial institutions, click here and here.
About FTA
The Financial Technology Association (FTA) is a Washington, DC-based trade association representing industry leaders shaping the future of finance. We champion the power of technology-centered financial services and advocate for the modernization of financial regulation to support inclusion and responsible innovation.
FTA Applauds CFPB Move to Finalize Open Banking Rules That Will Benefit American Consumers
In a comment letter, FTA urges the CFPB to focus on consumer-centric implementation of open banking, including allowing the broader use of data to benefit consumers.
WASHINGTON, D.C. – The Financial Technology Association (FTA) today filed a comment letter in response to the Consumer Financial Protection Bureau’s (CFPB) notice of proposed rulemaking on personal financial data rights, which will implement open banking under Section 1033 of the Dodd-Frank Act. The CFPB has stated that it aims to finalize the rule in 2024, formally establishing consumers’ right to control and securely share their financial data and accelerating open banking in the U.S.
“FTA applauds the CFPB’s move to finalize open banking rules that will give consumers greater control over their financial data,” said Penny Lee, President and CEO of the Financial Technology Association. “Personal financial data rights will help hundreds of millions of Americans benefit from affordable digital financial tools to spend, save, and manage their money. Establishing rules of the road for sharing consumer financial data will unlock greater innovation, improve consumers’ experiences, and ensure greater trust in the financial ecosystem.”
FTA’s comment letter urges the CFPB to foster competition and responsible innovation while preventing incumbent financial institutions from engaging in anti-competitive behavior that stops consumers from exercising their financial data rights. Specifically, FTA urges the CFPB to more broadly allow the secondary use of financial data to promote innovation and better consumer outcomes. Many commonplace data uses benefit consumers by informing product innovation, guiding research and development, and enabling personalized services that save consumers time and money. These uses should be permitted, subject to appropriate disclosures and additional safeguards.
FTA offers several other recommendations for the CFPB to take into account when finalizing the open banking rule, such as the need for standard-setting organizations to include more diverse viewpoints including financial technology representatives, an appropriate timeframe to operationalize 1033 requirements effectively, and greater definitional clarity regarding covered entities.
Click here to read FTA’s full comment letter. For more information on the benefits of open banking to consumers and financial institutions, click here and here.
About FTA
The Financial Technology Association (FTA) is a Washington, DC-based trade association representing industry leaders shaping the future of finance. We champion the power of technology-centered financial services and advocate for the modernization of financial regulation to support inclusion and responsible innovation.