In a new American Banker article (subscription required), ICBA continued its call for the Consumer Financial Protection Bureau to include a community bank exemption in its pending 1033 rule on sharing consumer financial data.
Details: Citing ICBA concerns with the cost of the open banking rule, the article notes ICBA is calling on the CFPB to:
Exempt community banks with less than $850 million in assets from a requirement to create and maintain third-party developer interfaces.
Permit banks to charge a reasonable fee for providing access to consumer information to third parties.
Megabank View: ICBA’s Mickey Marshall told American Banker that community banks will be well-positioned under the open banking rule because of their customer-focused approach, though Bill Demchak of $557 billion-asset PNC Bank recently said the largest banks will “pull market share out of smaller banks.”
Background: Section 1033 requires covered financial institutions to make available to consumers and authorized third parties certain data relating to consumers’ transactions and accounts. The CFPB’s 1033 proposed rule issued
last fall would require virtually every bank in the country to establish and maintain a “developer portal” that third-party companies could use to access consumer data with consumer authorization.
ICBA Advocacy: In April, community bankers and staff from ICBA and Independent Bankers Association of Texas met with CFPB officials to express concerns with the 1033 rule. In its December comment letter on the proposal, ICBA urged the bureau to exempt certain community banks from the proposed standards and to permit banks to charge third parties a reasonable fee for providing access to consumer information.
