FIs and fintechs set up new industry group, Consumer Financial Data Rights
Financial services and fintech firms in the US come together to form a new industry group – Consumer Financial Data Rights (CFDR) – “to defend consumers’ access to their data and fuel innovation in fintech”.
The organisers explain: “As fintech companies increasingly collaborate with banks around the world to provide innovative solutions through open application program interfaces (APIs), this right ensures a consumer can continue to give permission to third party companies to use that individual’s data for managing their personal finances, obtaining loans, making payments, and providing investment advice in addition to many other applications.”
CFDR will seek to:
- drive financial innovation in a collaborative ecosystem by bridging the needs of consumers, banks, fintech innovators, and regulators;
- partner with banks to support unfettered access to consumer and small business data through a secure and open financial system;
- promote consumer rights to access and share their financial data with third party companies that provide tools to enable better financial outcomes.
“CFDR’s first action will be the submission of a joint comment letter in response to an advanced notice of proposed rulemaking on Enhanced Cyber Risk Management Standards issued by the Federal Reserve, Office of the Comptroller of the Currency, and Federal Deposit Insurance Corporation,” the organisation says.
“The submission will encourage the regulators to establish a risk hierarchy with regard to cybersecurity risk in the fintech industry and will note the importance of continuing to allow consumers to access secure tools that enable their financial well-being.”