Since the election, the future of the Consumer Financial Protection Bureau has been
Layer on top of that the fact that a U.S. Court of Appeals for the D.C. Circuit deemed the agency’s leadership structure
But regardless of what happens with the politically uncertain CFPB, many of the issues the bureau deals with are not political. Access to a consumer’s financial data falls into that category.
An obscure but critically important area of Dodd-Frank was a provision ensuring consumers’ rights to access their financial account and related data in electronic form. The CFPB
To be sure, the notion of this type of conflict makes for a great story, and limits on data access would certainly negatively impact consumers.
But the reality is quite different. Most of the financial technology industry and broader financial services industry rely on the principle that consumers have a right to access their personal financial information and share it with other parties. Most financial companies support such data access being available to help people invest with fair fees, settle debts, set and meet savings goals, and get favorable loans.
Passing viewers might reasonably wonder whether the uncertainty swirling around the CFPB calls into question data accessibility in the financial technology industry. But fintech’s future has never been brighter. Consumers have shown significant demand for the kinds of services that subsist on data access, and the industry is much closer to agreement on key issues than it might appear on the surface. Recent
In the past year or so, the industry has matured considerably. This progress reflects the fact that not only do we actually agree on more things than we disagree on, but that cooperation here benefits everyone. No longer is it a question of whether consumers should control access at all; we agree on that. Now, the question is how best to make sharing data possible.
This is especially true for areas like security, where stakeholders’ interests are closely aligned. In fact, most everyone agrees that ensuring safe and secure data access is the top priority, and the technology exists today to enable secure data access. Questions to the contrary are based on outdated notions of how the industry works.
Regulation can be helpful in this area. No doubt, it could have a big impact, and we would welcome additional thoughtful engagement from regulators and policymakers. Regulation would give teeth to the principles we all agree on and set standards for the principles where there is still daylight between us.
In a few weeks, stakeholders big and small across the industry will submit responses to the CFPB’s RFI on the topic of data access. I expect we’ll find affirmation of this newly collaborative reality, just as we saw with the CFPB’s
Healthy engagement on issues has not only brought recognition that the best future for consumers — and every stakeholder — depends on building an inclusive financial ecosystem, but it has also paved the way for workable solutions. Banks want freedom to choose the best approach for their business. With the advent of new rails in the form of trusted intermediaries, the resulting benefits have led to compromise and collaboration, not concession or conflict.
Zach Perret is CEO and co-founder at Plaid.