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In October 2023,
Section 1033 of the Dodd-Frank Act, which requires financial institutions to provide consumers with electronic access to bank account data, received little attention when President Obama signed it into law in July 2010, along with other omnibus legislation. It was. Tom Brown, partner and general counsel at Nyca Partners, recently wrote:
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BankThink contributor and Allon Advocacy founder Steve Boms explains that the implications of this long-awaited proposal are profound. Enabling a consumer-centric financial services ecosystem could foster a more competitive and vibrant market.
As the CFPB reviews industry feedback and seeks to develop final regulations, U.S. consumers deserve more than the ability to delegate access to electronic data related to savings accounts, credit cards, and e-wallets. Some say that there is. Some insiders have suggested that while the current proposal lays a good foundation, the CFPB should take time to ensure the final rule is more expansive than the proposal.
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Big banks have not always been the biggest supporters of data sharing and open banking, concerned about the potential for increased competition.
Such concerns may be unfounded. Long anticipated, the proposed new rules would require banks to allow consumers to bring their account data with them when they transfer their business to another institution (known as data portability). , will also force banks to allow third parties to digitally access their accounts when customers transfer their businesses. request such access. However, these changes actually
Get these perspectives on how the CFPB's proposed new rules on data sharing could impact the banking industry.