The Consumer Financial Protection Bureau this month will propose standards for sharing consumer financial data, CFPB Director Rohit Chopra said.
Details: At a Brookings Institution forum on the payments system, Chopra said the proposal to implement Section 1033 of the Dodd-Frank Act is designed to accelerate the transition to open and decentralized banking while strengthening protections against excessive surveillance and misuse of consumer data.
ICBA View: In a comment letter earlier this year responding to the CFPB outline of proposals, ICBA called on the bureau to:
Resist requiring banks to provide information outside the scope of Section 1033.
Limit data requirements that might harm consumers and banks.
Create exceptions and safe harbor protections tailored to community banks.
Petition on Data Aggregators: ICBA and other groups previously called on the CFPB to initiate a rulemaking that defines “larger participants” in the data aggregation services market that should be subject to ongoing supervision. The groups noted in a joint petition that while the 1033 rule will apply to financial institutions and data aggregators, third-party aggregators are not subject to CFPB supervision.
More from Chopra: In his Brookings remarks, Chopra also said the CFPB is planning:
Supplemental orders to certain large tech companies that operate payment processors about their use of personal data and issuance of private currency.
New guidance on how the Electronic Fund Transfer Act applies to private digital dollars and other virtual currencies.
To examine its authority to supervise nonbanks offering consumer payments platforms.
To encourage the Financial Stability Oversight Council to consider exercising its authority to designate stablecoins as systemically important.
