It said there may be benefits from authorizing third parties to access data on their behalf and allowing those parties to deliver new personal financial management services, payments, improved 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 consumer risks,” the CFPB said. The rule-making outreach seeks information on costs and benefits of consumer data access, competitive incentives, standard-setting, access scope, consumer control and privacy, and data security and accuracy.
Raul Carillo, an associate research scholar at Yale Law School who testified at the Financial Services Task Force hearing, said a consumer payment made with a mobile money account today typically involves a merchant, bank, payments processor, mobile device maker, internet service provider and app provider.
“Additionally, roughly 50 percent of U.S. consumers and 95 percent of U.S. deposit accounts are estimated to have signed up for financial apps that frequently rely on unregulated or under-regulated data aggregators,” Carillo said.
Carillo previously worked as an attorney for low-income consumers in New York City and as special counsel to the enforcement director of the CFPB.
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