A coalition of industry associations has submitted a joint comment letter to the US Consumer Financial Protection Bureau (CFPB). The letter concerned the CFPB’s revised proposal on Open Banking, and it urged the agency to preserve several core provisions from the original version of the rule.
The Financial Technology Association (FTA), together with organisations such as the American Fintech Council, Blockchain Association, Crypto Council for Innovation, Financial Data and Technology Association (FDATA), National Association of Convenience Stores, National Grocers Association, and National Retail Federation, outlined their concerns in a five-page submission.
Industry calls for clarity on data access and compliance timelines
According to representatives from the FTA, the coalition’s main argument centres on maintaining wide access to consumer financial data under section 1033 of the Dodd-Frank Act. The groups contend that the CFPB should not limit data access to entities with fiduciary relationships, stating that the law contains no such requirement. They further note that even traditional banks typically do not operate under fiduciary relationships with their customers.
The letter also challenges the potential introduction of fees for accessing consumer data. The associations interpret section 1033 as prohibiting such charges, pointing to the statutory language that financial institutions 'shall make available' data at a consumer’s request, a phrase they argue establishes a right rather than a service subject to fees.
In addition, the coalition emphasises the need for a defined implementation schedule. They recommend that compliance deadlines remain consistent with the timelines in the original rule, tiered according to institution size. According to FTA officials, such a structure would ensure that smaller firms have adequate time to meet regulatory obligations without delaying wider adoption of Open Banking standards.
The CFPB’s Open Banking framework, formally the Personal Financial Data Rights (PFDR) rule, mandates that financial institutions provide consumers with free, electronic access to their personal financial data so it can be shared with third parties. This rule, based on Section 1033 of the Dodd-Frank Act, aims to support competition and give consumers more choice in managing their finances.
