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    FINANCIAL INSTITUTIONS

    Understanding
    CFPB Section 1033

    Section 1033 of the Dodd-Frank Act mandates that financial institutions provide consumers with access to their personal financial data. This regulation aims to enhance transparency, promote competition, and foster innovation in the financial services industry.

    1033 Hero image

    What is Section 1033?

    Enacted as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Section 1033 grants consumers the right to access their financial information held by financial institutions.

    This includes details such as account balances, transaction histories, and other pertinent data. The Consumer Financial Protection Bureau (CFPB) is responsible for implementing rules to enforce these rights, ensuring that consumers can securely share their data with authorized third parties.

    SECTION 1033

    Key requirements for financial Institutions

    On October 22, 2024, the CFPB issued its final ruling on Section 1033 to accelerate a shift toward open finance, giving consumers more control over their data and protecting against companies misusing that data.

    Now, financial institutions must adhere to technical and procedural obligations to achieve and maintain compliance. 

    Check your 1033 readiness score

    • Provide consumer access: Allow consumers to access their financial data upon request in a usable electronic format.

    • Facilitate third-party sharing: Enable consumers to authorize third parties to access their financial data, promoting interoperability and consumer choice.

    • Ensure data security: Implement secure Application Programming Interfaces (APIs) to protect consumer data from unauthorized access and breaches.

    • Obtain informed consent: Clearly disclose what data is being collected, how it is used, and with whom it is shared, ensuring consumers provide informed consent.

    Compliance deadlines are tiered based on institution size, with larger institutions expected to comply sooner than smaller ones.

    Impact for banks and credit unions

    Adhering to Section 1033 is not just a regulatory requirement but also an opportunity for financial institutions of all sizes.

    Learn about Akoya's Open Finance Solution

    Enhance consumer trust

    By providing transparent access to financial data, institutions can build stronger relationships with their customers.

    Drive innovation

    Facilitating data sharing with fintechs and other third parties can lead to the development of innovative financial products and services.

    Improve operational efficiency

    Standardizing data access through APIs can streamline processes and reduce reliance on outdated methods like screen scraping

    Financial institutions trust Akoya

    PNC logo testimonial
    “ We recognize how important it is for our customers to be able to use the financial applications of their choice in a safe and secure manner. Akoya's capabilities help us meet the data sharing needs of our customers as well as data aggregators, data providers, and other third-parties, in line with evolving industry standards. This is good for our business, good for our customers, and good for the industry. ”
    Bill Demchak, Chairman, President and CEO
    TD Bank logo testimonial
    “ TD has embraced the Akoya Data Access Network as a key enabler of our customer-driven banking strategy in the US market. This has allowed us to provide our customers with a safe and secure way to share their data with participating third-parties of their choice. ”
    Franklin Garrigues , Vice President of External Ecosystems

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    View our Open Banking Compliance Webinar Series - CFPB 1033 Prepardeness & Best Practices.

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