The American Fintech Council (AFC) has expressed concerns over the Consumer Financial Protection Bureau's (CFPB) recent finalization of its Personal Financial Data Rights rule. Ian P. Moloney, Senior Vice President and Head of Policy and Regulatory Affairs at AFC, acknowledged the CFPB's efforts to establish an Open Banking framework but criticized certain aspects of the rule.

Moloney stated, "AFC recognizes and appreciates the monumental effort put forward by the Consumer Financial Protection Bureau (CFPB) to establish a robust Open Banking framework through the finalization of its Personal Financial Data Rights rule." However, he voiced concern about the lack of consideration for regulatory provisions related to secondary use of consumer data for cross-selling financial products and targeted advertising.

He pointed out that while consumer data can be used responsibly for such purposes, strict prohibitions on secondary use are not aligned with principles aimed at bolstering competition and ensuring consumer access to their data. Moloney emphasized that responsible fintech companies could leverage this data to offer improved services to underserved communities.

Although AFC acknowledges some amendments in the rule regarding permitted uses of consumer data, Moloney remarked that these do not address core issues: "While AFC recognizes that the CFPB amended its rule to provide additional examples... they unfortunately do not solve the issues at the heart of our concerns."

The organization also expressed disappointment over provisions requiring annual reauthorization without amendment. While supporting consumer protection through reauthorization requirements, AFC believes further evaluation is needed for effective outcomes.

In light of these concerns, AFC is calling for a reassessment of these provisions or legislative action from Congress. They request immediate guidance on resolving issues related to secondary use and annual reauthorization within the rule.