Fair & Open Banking (Section 1033) Proposal

In October 2023, the CFPB issued a proposal to implement Section 1033 of the Consumer Financial Protection Act (CFPA). The purpose of Section 1033 is to promote fair and open banking and give consumers more control over their personal financial data. In other words, the Proposal seeks to make it easier for consumers to switch financial institutions which, in turn, will increase competition and ultimately improve customer service and more favorable terms.

We discussed this briefly during our November 2023 Monthly Connection. Diane explains more in the video.

Video Highlights:

• This Proposal will make it easier for a consumer change financial institutions.
• Financial institutions will be required to make certain information available to “travel” with the consumer to their new financial institution.
• Institutions will likely need to involve their IT departments as technology is a huge piece to this.

Published
2024/01/04