The news: The CFPB’s period for public comment on its upcoming push to mandate open banking among banks and credit card companies ended on January 25. We dig into the three major concerns that the feedback highlighted, per Bloomberg Law.
Unfair for the little guy: Community banks and credit unions are wary of the implementation speed for open banking.
Fintechs count, too: Banking trade groups believe fintech firms and nonbank entities should be subject to the open banking requirements as well.
Data privacy can still stall: Consumer data security and privacy was another main topic in the comments.
The big takeaway: As the CFPB finally takes on the open banking challenge, it appears its first attempt is incomplete. The agency’s next outlined step is to propose an open banking rule later this year, and then implement it in 2024. But with so many concerns still up in the air, the CFPB might need to re-evaluate the scope and timeline. That could spell further new regulation for the already busy CFPB, which may not be prepared for the extra responsibility and strain on resources.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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