Washington, D.C. (Oct. 19, 2023)—Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on today’s Consumer Financial Protection Bureau proposal to implement Section 1033 standards for sharing consumer financial data.
“ICBA is reviewing today’s CFPB proposal to implement standards for sharing consumer financial data for financial institutions and nonbank service providers.
“ICBA has profound concerns that nonbank entities — which access customer information and store bank login credentials — do not take the same care in protecting consumer privacy and data that community banks do, which should be the focus of the CFPB’s proposal. Nonbank entities that access customer account data must be held responsible for ensuring the security of the consumer information they access and must be held liable for any data breaches and consumer harm they cause by accessing consumer data.
“As ICBA said in a comment letter earlier this year responding to the CFPB’s outline of proposals, the bureau’s rulemaking should resist requiring banks to provide information outside the scope of Section 1033, limit data requirements that might harm consumers and banks, and create exceptions and safe harbor protections tailored to community banks. The CFPB must ensure its rule avoids mandates that would disadvantage community banks and the customers and communities they serve.
“ICBA and the nation’s community banks look forward to fully reviewing today’s proposal to ensure it supports responsible financial services innovation and accounts for the privacy, regulatory compliance burden, data security, and legal implications presented by permissioned third-party access to consumer bank accounts.”
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.
With nearly 50,000 locations nationwide, community banks constitute roughly 99 percent of all banks, employ nearly 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding nearly $5.9 trillion in assets, over $4.9 trillion in deposits, and more than $3.5 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.