CFPB’s Open Banking Data Access Controls Fall Short, Banks Say

The Consumer Financial Protection Bureau’s rule making it easier for customers to access and transfer their financial data gives banks the power to reject potentially risky financial technology companies, but traditional lenders say the provisions aren’t clear enough.

The final open banking rule, unveiled Oct. 22, requires banks to give fintechs access to customer deposit and credit account data with the customer’s permission. Banks warn that this will expose customer data to hacks and increase fraud risks, while creating potential headaches for compliance programs.

The CFPB’s rule also allows banks to reject data requests that pose a risk and don’t ...