The American Fintech Council (AFC) responded to the Consumer Financial Protection Bureau’s (CFPB) recent legal developments regarding open banking. The CFPB requested a stay in ongoing litigation, which the court has granted, as the Bureau plans to reengage on rulemaking for open banking.
Phil Goldfeder, CEO of the AFC, stated, “Consumers deserve a right to their own financial data, full stop. We are encouraged by the CFPB’s motion to stay the litigation pending the Bureau’s reengagement on the open banking rule, and the court’s decision to grant the request. As we have in the past, we look forward to representing responsible innovators and elevating consumers and their needs through the proposed expedited rulemaking process.”
Goldfeder emphasized that competition, consumer data rights, and responsible innovation are essential for an effective open banking system. He expressed concern about actions taken by major banks that could disrupt financial services competition. “Competition, consumer data rights, and responsible innovation are pillars of a strong open banking framework. Unfortunately, we have seen the nation’s largest banks make moves to disrupt a thriving financial ecosystem, eliminate competition, and tear down open banking, hurting consumers in the process,” he said.
The AFC intends to collaborate with regulators on creating policies that support consumer access and transparency in financial services. Goldfeder added: “We will work with the CFPB to promote and support a regulatory framework that ensures consumers continue to benefit from products and services that serve their needs by making finance more accessible, transparent, and affordable.”