Small Banks Urge CFPB to Phase in Open Banking Tech Requirements (Correct)

Smaller banks are urging the CFPB to consider a more gradual technological shift and weigh their cost burdens, as the regulator crafts a new “open banking” rule to ease consumers’ sharing of financial information.

The Consumer Financial Protection Bureau’s open banking proposal aims to allow consumers to seamlessly switch between financial service providers by requiring banks and credit card companies to develop technology that consumers can use to share their financial data with fintechs and other upstart competitors. Public comments on the CFPB outline for its plans were due on Jan. 25.

Credit unions and community banks asked the CFPB ...