When the CFPB released their long-awaited proposal on open banking rules in October there was cautious optimism from both banking and fintech groups.
Fast forward two and a half months, when everyone has had a chance to fully digest the 299-page proposed rulemaking, there are many suggestions for improvement. With the 60-day comment period ending this week, the CFPB has received over 11,000 comments.
American Banker has a good roundup of the comments from many of the major banking and fintech trade groups.
Several issues were front and center. While everyone is supportive of the concept of consumers having more control over their own data how that is achieved is very much up for debate. Should it be an opt-in or opt-out system?
Banking groups balk at the cost of implementing the data sharing technology and want a level playing field. Fintechs don’t want the same restrictions applied to anonymous data arguing that would stifle innovation.
The CFPB has a lot of reading to do now as it considers all these comments and looks to make a final rule sometime later this year.
Featured
Banks and fintechs unload on CFPB’s open banking plan
By Kate Berry
In comment letters to the Consumer Financial Protection Bureau concerning its proposed rule to allow consumers to share their banking data with third-party providers, banks worry about implementation costs while fintechs fear the rule will stymie innovation.
From Fintech Nexus
> Neu helps students build credit and avoid the debt trap
By Tony Zerucha
Neu’s path to success will produce financially literate college graduates and a strong bottom line. The journey began in late 2023 with the release of the Neu Card, whose attributes include no late fees and interest charges, a maximum $1,000 spending limit, no Social Security number required, and no credit history or cosigner required.
Podcast
Tom Bell, CEO of Maast on embedded finance for software companies
The CEO and co-founder of Maast, Tom Bell, talks about embedded finance and why it is perfect match for software companies
Webinar
High Performance Payouts: Why real-time Pay-to-Card is revolutionizing access to cash
Jan 17, 12pm EST
Real-time payouts have never mattered more than they do in today’s digital economy. Across platform economies – serving creator…
Also Making News
- Global: Visa pilots Web3 customer loyalty platform
Crypto products and partnerships continue to emerge from the payments giant.
- UK: Here’s how HSBC’s international payments app Zing compares to Wise and Revolut
HSBC has launched a new product called Zing focused on international transfers to better compete with fintech companies like Wise (formerly TransferWise).
- USA: What Bankers Can Learn from Plaid Study of Fintech Apps
New Plaid research about consumers’ use of financial apps shows that they increasingly load up their devices, mixing and matching to create their own take on ‘superapps.’
- USA: 48% of Consumers Look Beyond Their Main FI for Mortgage Loan
Although consumers’ financial institutions (FIs) offer most credit products, PYMNTS found that nearly half of them turn to other FIs for their mortgages.
- Global: As Gen AI picks up pace in the financial industry, banks are still finding their place in the equation
Generative AI sparked excitement in the financial sector throughout 2023, and the trend is expected to continue in 2024 with the emergence of new use cases. However, impediments stand in the path of banks that are still navigating their role in this evolving landscape.
- USA: New payment CEOs taking the spotlight for 2024
These executives have taken charge at firms like PayPal, Discover and Early Warning Services during a volatile time for the entire industry.
To sponsor our newsletters and reach 220,000 fintech enthusiasts with your message, contact us here.