Understanding
CFPB Section 1033
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.
In the future, financial institutions will have to adhere to technical and procedural obligations to achieve and maintain compliance.
-
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 will be 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 possible regulatory requirement but also an opportunity for financial institutions of all sizes.
Service-minded
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Standardizing data access through APIs can streamline processes and reduce reliance on outdated methods like screen scraping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
"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
Featured resources
Open finance is a program, not a project
The foundation beneath smarter credit: why infrastructure determines who gets access
How leading institutions are closing the open finance strategy gap
Combating the risks of screen scraping: A guide for financial institutions
On-demand webinar: Open finance at an inflection point
What's holding banks back from open finance?
New research findings on the state of open finance adoption
Insights from Akoya's response to the CFPB
Understand the open finance impact
Please complete the form below and an Akoyan will be in touch to schedule a 30-minute demo.