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How fintech got banks to come around on open banking

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t’s been 12 years since Congress passed the Dodd-Frank Act, the largest Wall Street reform in American history. The effects of the bill have been far-reaching, but one key part, Section 1033, has been on hold all this time.

The provision was meant to provide marching orders to banks and fintech firms looking to share data and grow their businesses by providing new digital services to customers, like budgeting software and online bill pay. Instead, it prolonged years of squabbling and competition between banks, fintech companies, and consumer advocacy groups, which couldn’t agree on how rules stemming from Section 1033 needed to be written. At stake was control over customer data, the ability to ensure secure online transactions, and a chance to shape a new era of digital banking.

Now, finally, an end appears to be in sight. The Consumer Financial Protection Bureau, the agency tasked with rulemaking under Section 1033, has signaled that the issue will go before its small business review panel before the end of the year.

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