When the CFPB released their long-awaited proposal on open banking rules in October there was cautious optimism from both banking and fintech groups.
Fast forward two and a half months, when everyone has had a chance to fully digest the 299-page proposed rulemaking, there are many suggestions for improvement. With the 60-day comment period ending this week, the CFPB has received over 11,000 comments.
American Banker has a good roundup of the comments from many of the major banking and fintech trade groups.
Several issues were front and center. While everyone is supportive of the concept of consumers having more control over their own data how that is achieved is very much up for debate. Should it be an opt-in or opt-out system?
Banking groups balk at the cost of implementing the data sharing technology and want a level playing field. Fintechs don’t want the same restrictions applied to anonymous data arguing that would stifle innovation.
The CFPB has a lot of reading to do now as it considers all these comments and looks to make a final rule sometime later this year.
In comment letters to the Consumer Financial Protection Bureau concerning its proposed rule to allow consumers to share their banking data with third-party providers, banks worry about implementation costs while fintechs fear the rule will stymie innovation.
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Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s largest digital media company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series.