As the Consumer Financial Protection Bureau drafts a new “open banking” rule to facilitate the sharing of consumer financial information, smaller banks are pushing the CFPB to take a more gradual approach – i.e. slow down. The current open banking proposal calls for banks and credit card companies to accelerate the implementation of technology to enable consumers to share their financial information with fintechs and other upstart rivals in a bid to increase competition and decrease switching costs. The faster track could unfairly benefit larger institutions over smaller ones as a function of available resources.
Small Banks Urge CFPB to Phase in Open Banking Tech Requirements (Correct)
