The news: The Consumer Financial Protection Bureau (CFPB) is reportedly planning to repeal Section 1033 of its Open Banking Rule after facing a lawsuit for “exceeding its statutory authority,” per Consumer Finance Monitor. But that doesn’t mean financial institutions (FIs) are abandoning open banking.
One bank’s plans: Citizens Bank’s head of embedded finance Eric McCabe told American Banker that Citizens still intends to “leverage open banking for secure data sharing and great customer experience.”
The bank primarily invested in streamlined data sharing to meet general market demand for improved data-sharing and a secure alternative to screen scraping—rather than as a direct response to section 1033. Its single, enterprisewide API simplifies data connections and the addition of new data fields and features for customers.