Lawmakers agree on need to curb fintech data sharing
He said there could be benefits to allowing third parties to access data on their behalf and enabling those parties to provide new personal financial management services, payments, better retirement savings outcomes and access to credit.
“While consumer access to financial records can enable the development of innovative and beneficial consumer financial products, it can also present risks to consumers,” said CFPB. Rulemaking Awareness seeks information on the costs and benefits of accessing consumer data, competitive incentives, standard setting, scope of access, consumer control and privacy , as well as data security and accuracy.
Raul Carillo, an associate researcher at Yale Law School who testified at the Financial Services Task Force hearing, said a consumer payment made today with a mobile money account typically involves a merchant , a bank, a payment processor, a mobile device manufacturer, an Internet service provider and an application provider.
“Additionally, it is estimated that approximately 50% of US consumers and 95% of US deposit accounts have signed up for financial apps that frequently rely on unregulated or under-regulated data aggregators,” Carillo said.
Carillo previously worked as a lawyer for low-income consumers in New York City and as a special advisor to the CFPB’s director of enforcement.