The US Consumer Financial Protection Bureau (CFPB) has issued an advance notice of proposed rulemaking (ANPR) related to the governance of borrower’s financial data.
The consumer watchdog has asked public to share their comments on changing the rules supervising how the consumer’s financial data is accessed and used by online financial institutions.
Go deeper with GlobalData
The regulator is asking public how to best implement the Section 1033 of the Dodd-Frank Act.
This Act provides online banks, fintechs and data aggregators with consumer rights to access financial records.
Generally, these companies collect the consumer’s data whenever they use financial products and services offered to them.
However, with consumer getting rights to such data, they can manage their financial accounts and control how third parties access their financial data.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataCFPB claims that the full extent of the policy can be realised when consumers authorise third parties to access their financial data in exchange for new and improved products and services.
Some use cases include personal financial management, making and receiving payments, assisting consumers with improving savings outcomes, underwriting credit, among others.
While this could bring new products in the market, consumer advocates suggest that competition between firms accessing these data, may put consumers at risk.
National Consumer Law Center attorney Chi Chi Wu said “We agree that consumers should have access to their own data and that its use can be beneficial.
“But allowing access by others to this data can also pose significant risks, and part of CFPB’s goal in this rulemaking should include protecting against those.”
The regulator is seeking comments on costs and benefits of consumer data access, control and privacy, data security and accuracy, incentives, and more.
On its website, CFPB said: “The Bureau is committed to ensuring transparent and deliberate rulemaking processes. All interested parties are encouraged to submit comments on the ANPR. Comments are due within 90 days after the ANPR’s publication in the Federal Register.”
