Open banking (rule)

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pmbug

pmbug

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The Consumer Financial Protection Bureau (CFPB) has proposed an open banking rule (Proposed Rule) requiring certain financial institutions to allow consumers and approved third-party financial service providers to allow access to a consumer’s banking, transaction, and other financial data known to the financial institution. The CFPB will publish a finalized version of the Proposed Rule this fall.

What is open banking?

The concept of open banking was first introduced in 2003 as part of the open innovation movement and is driven by technological advancements that enabled consumer facing banking to function through new online technologies. Open banking (also known as “open bank data”) facilitates the interconnection of accounts and data across different institutions, providing benefits to consumers, financial institutions, and third-party service providers. Open banking is anticipated to be a major driver of innovation which could revolutionize the banking industry. The result could be a more competitive financial services marketplace as consumers are more easily able to transfer data across financial service providers. The Proposed Rule covers consumer financial data relating to account balances, two years of transaction history, access device information (e.g. account numbers, routing numbers or their tokenized equivalents), account terms and conditions, pending bill payments, and basic information needed to verify the account (e.g. name, address, phone number, etc. of the account holder).
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More:

www.jdsupra.com

Open Banking: An Introduction | JD Supra

The Consumer Financial Protection Bureau (CFPB) has proposed an open banking rule (Proposed Rule) requiring certain financial institutions to allow...
www.jdsupra.com www.jdsupra.com

Supposedly the CFPB could issue their finalized rule proposal as early as today...
 
The top U.S. watchdog agency for consumer financial protection on Tuesday unveiled long-awaited rules intended to drive a shift toward open banking and spur competition, saying they would allow consumers to control and share their own data when shopping for services.
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Ahead of the announcement, CFPB officials said the agency had made some changes to the version originally proposed in response to concerns from industry and public comment, sparing banks with less than $850 million in assets from having to provide data, for example.

Companies will also have more time than originally proposed to come into compliance. Larger financial technology companies will have until 2026, while the smallest will have until 2030.

Data aggregators, such as Plaid and Akoya, who provide connections among banks and financial tech services, reacted favorably, saying the rule would promote the secure transfer of consumer data. But other trade groups said they were not happy.

Lindsey Johnson, head of the Consumer Bankers Association, said in a statement the CFPB had "contorted" the congressional statute authorizing the rule to enable "thousands of third parties' to access consumers' data."

Ian Maloney, AFC's head of policy, said however that the final rule improperly barred the "secondary use" of consumer data for cross-selling services and targeted advertising.
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https://www.msn.com/en-ca/money/top...umer-data-unveiled-by-us-watchdog/ar-AA1sIOGF

... The open banking rule is referred to by the industry as "1033" for the section in the Dodd-Frank Act of 2010 that gave the CFPB authority to implement how consumers control their own financial data.

The CFPB's rule requires that banks safely share financial data on checking accounts, prepaid cards, credit cards, mobile wallets, payment apps and other financial products. Payment apps and other financial products were added in the final rule, sweeping Apple Pay, Google Pay, PayPal, Zelle and Venmo and other apps into the scope of the rule. The change is further proof that third-party apps are dominant forces in banking and payments.

Banks are concerned the rule will expose them to greater liability and also require costly oversight of third-party fintech companies, a tall task in an ecosystem awash with data and a surfeit of fintech upstarts. As the main data providers, banks do have some ability to deny third parties access to consumer data if a company presents risks to the financial system.
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In another change from the proposal unveiled last October, the final rule would allow for some secondary uses of consumer-authorized data by third parties to improve the product or service that the consumer requested without obtaining a separate authorization. Fintech providers and some consumer advocates asked the CFPB to provide for secondary uses of the data to train underwriting models and for anti-fraud tools as well as research and product development.

"The rule is designed to ensure that open banking does not become a new data pipeline that fuels surveillance pricing or other manipulative mischief," Chopra said in prepared remarks for a speech to be delivered at a Fintech Week conference hosted by the Federal Reserve Bank of Philadelphia.
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Consumers have been sharing their bank transaction data for years using the common but risky practice of "screen scraping" — giving usernames and passwords to third parties. The CFPB said that screen scraping brings with it inherent risks, such as overcollection of data, inaccurate data sharing, and the spread of login credentials.

The rule would encourage further the adoption of secure application programming interfaces, or APIs, by enabling the exchange of data in a standardized format. The CFPB has already received an application from the Financial Data Exchange to be recognized as an industry standard-setting body of data formatting standards.
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www.americanbanker.com

CFPB's 1033 open banking final rule expands scope to payment apps

The Consumer Financial Protection Bureau expanded the scope of the 1033 rule to include payment apps, provides for some secondary uses of data, and extends the timeline for compliance.
www.americanbanker.com www.americanbanker.com
 
It's using personal finance to intrude and implement social credit.
 
Voodoo said:
My social credit is Trash. And I'm damn proud of it. :pffft:
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I salute your spirit.

Are you anticipating full consequences? Denial of air-travel. (no "Real" ID; no boarding. No Jab, no "Real" ID.)

Higher borrowed-money costs, for lower credit scores. (You manage money fine; but you're the wrong hue; and all those DEI loans and card accounts that have defaulted, have to be PAID.)

Denial or limited access on (anti)social media. Take Face___k, for example. You want to sell something. Craigslist has become a joke. You have to have a Face___k membership to use their classifieds; but your low Social Credit score means only limited access, and first to be edited. No Marketplace for YOU.

No Amazon, once Bozos gets with the program, either.

Look, I'm in the same boat; but I'm resigning myself to a pretty bleak decade ahead. I wonder how many others can accept that.
 
Casey Jones said:
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No Marketplace for YOU. ...
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I know a lot of folks in the goldbug community are hostile to crypto, but I really see the war on crypto as the primary battleground for a free market payment gateway alternative to the social credit financial cage that the certain parties in this world are seemingly trying to build.
 
pmbug said:
I know a lot of folks in the goldbug community are hostile to crypto, but I really see the war on crypto as the primary battleground for a free market payment gateway alternative to the social credit financial cage that the certain parties in this world are seemingly trying to build.
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I can only speak for myself, but I'm not hostile to it. I'm just not a believer.

If someone wants to collect bitcoin bytes...or Beanie Babies...hey, go for it. As you know, having tried to help me, I looked into bitcoin - and find it impossibly complicated. Give me a couple of months, and I can learn it, I'm sure; but I trot out the Watch Rule.

If a watch comes with a 95-page manual telling me the elaborate sequences to set the various features...NOT INTERESTED. I have a couple of timers, that a sibling had bought for other purposes. They're digital, with internal flat-disc batteries...and the manual is 135 pages, and I have to re-read it every time the batteries die. Once a year.

Fuggitt. I bought an electric-motor dial timer for what I needed. Those two Smokey-Stover pieces of excrement...designed to excite autistics who just LUUV software updates and reformatting their computers...those things, those crazy-complex watches...a type of "money" that requires weeks of training and elaborate equipment and networks...not the F interested.

That doesn't mean I support the government's crazed lust to TAX it, and get my SUPPORT to tax it, just because I don't understand it.
 
I would like to buy some of the BRICS units when they are available.
 
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