CFPB Section 1033 Open Banking: What the Data Rule Covers and Who Answers for It

Section 1033 of the Dodd-Frank Act gives the Consumer Financial Protection Bureau authority to write rules requiring financial firms to make a consumer's own account data available, on the consumer's request, to a third party the consumer chooses. The bureau used that authority to adopt its personal financial data rights rule — the open banking rule — and the obligations it creates fall mainly on the firms that hold the data, not on the fintech apps that receive it. The specific covered entities, obligations, and compliance dates are fixed by the final rule text, and teams should read that text rather than summaries of it. This matters because account data is the raw material of most consumer fintech. Budgeting apps, payment services, and lending platforms all depend on a customer's ability to point at a bank or card account and say: share this. Before a rule like this, that sharing ran on bilateral agreements and screen-scraping, with no federal floor of rights.

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