The American Fintech Council (AFC) has filed an amicus brief in the case of Forcht Bank, N.A. et al. v. Consumer Financial Protection Bureau, et al., supporting the CFPB's rule on consumer data rights under Section 1033 of the Dodd-Frank Act. This rule is commonly known as the Personal Financial Data Rights or Open Banking rule.
The AFC is urging the U.S. District Court for the Eastern District of Kentucky to uphold this rule, describing it as a lawful and necessary framework for a secure open banking system that centers on consumers. The amicus brief aligns with a motion for summary judgment recently filed by the Financial Technology Association, which is defending the rule in court.
Phil Goldfeder, CEO of AFC, stated: “The CFPB’s open banking rule is a meaningful step forward that empowers consumers and enables innovation.” He acknowledged concerns with certain provisions but emphasized that upholding the rule is vital for evolving secure and inclusive financial services.
The AFC's brief supports broadening the definition of "consumer" to include authorized third parties who can access financial data with consumer permission. It also endorses clarity around data security and risk management while agreeing with not creating new liability rules or directly supervising all third parties.
Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at AFC, remarked: “The open banking rule offers clear guidance without overreach.” He highlighted that both consumers deserve tools to manage their finances effectively and fintech companies need regulatory certainty.
AFC represents a diverse group including smaller banks, credit unions, and fintech companies that support open banking innovation through partnerships. This diversity allows AFC to offer a unique perspective on CFPB’s rules reflecting practical realities faced by smaller institutions seeking to innovate in financial services.
“AFC brings a unique perspective to this case,” wrote AFC in their brief, suggesting their insights could aid the Court in evaluating competing motions for summary judgment.
As a standards-based organization representing major fintech companies and innovative banks offering embedded finance solutions, AFC aims to promote transparency and inclusivity in financial systems by supporting responsible innovation.