ICBA and Independent Bankers Association of Texas community bankers and staff met with Consumer Financial Protection Bureau officials to express concerns with the bureau’s pending 1033 rule on sharing consumer financial data.
ICBA Concerns: During the meeting, ICBA and IBAT:
Encouraged the CFPB not to require banks to provide tokenized account numbers in lieu of routing and account numbers, which would be too complex to require as a part of the rulemaking.
Expressed concern that community banks will be dependent on their core processors to create compliance software.
Said the data security practices of third-party data recipients remain a serious concern and the bureau should actively supervise third parties to ensure adequate safeguards of customers’ personal financial information.
ICBA View: In its December comment letter on the CFPB’s 1033 proposal, ICBA urged the bureau to exempt certain community banks from the proposed standards and to permit banks to charge third parties a reasonable fee for providing access to consumer information. It previously urged the bureau to resist requiring banks to provide information outside the scope of Section 1033, limit potentially harmful data requirements, and tailor safe harbor protections to community banks.
Background: Section 1033 of the Dodd-Frank Act requires covered financial institutions to make available to consumers and authorized third parties certain data relating to consumers’ transactions and accounts. The CFPB’s proposal would require virtually every bank in the country to establish and maintain a “developer portal” that third-party companies could use to access consumer data with consumer authorization.
