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Banking Law

CFPB’S Open Banking Rulemaking Muddled by Dated Finance Laws

Feb. 17, 2021, 2:01 PM

A growing consensus that the CFPB should create regulations on ensuring consumers’ safe sharing of their bank data with finance apps, such as Venmo and Mint, isn’t making the agency’s job any easier.

The Consumer Financial Protection Bureau faces challenges in deciding how to apply a maze of dated consumer finance laws—aimed at protecting consumers from data breaches, flawed credit reports, and fraudulent transactions—to the new world of open banking, a system that lets third parties develop software and other services around financial institutions.

Sorting out various financial regulatory agecies’ jurisdiction and oversight responsibilities in the emerging sector is another...

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