Banks Seek Guidance on Who’s Liable for Open Banking Data Fraud

Banks are voicing concerns that the CFPB’s plans for consumer data sharing with fintech upstarts failed to spell out how to spread liability in the event of fraud.

The Consumer Financial Protection Bureau issued an outline of a plan that would allow consumers to more easily share personal financial information with third-party fintechs, including data aggregators.

The “open banking” policy is aimed at easing consumers’ ability to switch banks and lenders, as well as link accounts with other service providers. Data aggregators, such as Plaid and MX, would work as a middleman that eases consumers’ process of switching banks by ...