FDATA in the News

“If there is no movement this year in Canada on a regulatory framework, and no further commitments in the budget, large financial institutions will keep controlling the banking system, and opportunities will be lost,” said FDATA North America’s Steve Boms.

Fintech trading app Robinhood was at the center of the GameStop controversy that Congress is investigating. But a too-heated response from Congress could undermine access to affordable financial tools.

FDATA North America Executive Director Steve Boms noted that open finance maximizes the potential of fintech to improve financial access and inclusion, and the new members will be important allies in this effort.

The Biden administration can ensure the success of economic equality and financial inclusion by completing an initiative under the Consumer Financial Protection Bureau: enacting regulations to implement Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

As the bureau writes data-sharing rules, the third-party firms that work with fintechs say oversight by the agency would be more efficient – and better for consumers – than being policed by their bank partners.

The CFPB is seeking input on potential regulations for consumer access to electronic financial records through an advance notice of proposed rulemaking. Banks and fintech firms are closely watching.

The CFPB has taken its first step toward weighing in on a raging debate between upstart technology companies and banks over control of the financial data of millions of Americans.

There’s no PSD2-style law requiring banks in the US to share data with third-party payment apps, but the market is progressing as if there will be one, leaving some smaller banks at a disadvantage.

The financial technology and data aggregation communities have long advocated for the CFPB to issue a rule under Section 1033, asserting this is the key first step toward an open finance framework under which a consumer or small business is in full control of their financial data.