Open Banking Rules Supporters Urge CFPB to Expand Eligible Records

Open Banking Rules Supporters Urge CFPB to Expand Eligible Records

April 7, 2023, Bloomberg Law

David Stein's commentary appeared in a Bloomberg Law article about how the CFPB is under pressure to extend coverage of its open banking rule to mortgage, student and auto loans, and other credit accounts that proponents say will offer people a more complete financial profile.

According to David, "Smaller banks, which offer more personalized products and are more focused on auto, student and mortgage loans than their larger peers, could benefit from an expanded rule that allows for greater data sharing."

The desire to expand the accounts covered by the rule also represents an evolution in how banks view data sharing.

"Banks have realized that although they must give out consumer data, they can also receive it. And that can help expand business," David said. "Customers also want to be able to easily share their data."

“Imagine how a consumer would react if they could get their banking information from the big boys for this portal, but they can’t get their information from a small bank, a community bank, or a credit union,” David stated.

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