IBAT staff and volunteers met yesterday with staff from the Consumer Financial Protection Bureau (CFPB) to discuss ongoing efforts by the bureau to finalize rules implementing the “open banking,” Section 1033 of the Dodd-Frank Act.
Dodd-Frank requires that the bureau create rules, which would allow for consumers to take their financial data from one provider to another, without cost to the consumer. In the meeting, IBAT raised concerns that the rules will, by necessity, require a massive rewriting of bank technological infrastructure, which would take much longer than the time allowed in the implementation period.
“As proposed, Section 1033 rules would require that disparate pieces of data from multiple systems within the bank be pulled together and transmitted to third parties at the request of consumers,” said Bill Briggs, IBAT’s Director of Federal and Regulatory Advocacy. “This is not just technologically impossible at the moment, but it will also result in banks incurring tremendous expense with no mechanism to recapture that investment in the future.”
Final rules implementing Section 1033 are expected to be released this Fall.
