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1 1 (September 9, 2021)

handle is hein.crs/goveemb0001 and id is 1 raw text is: Congressional ~ Research Service inf arming the legis aive debate since 1914____________________ Open Banking, Data Sharing, and the CFPB's 1033 Rulemaking September 9, 2021 New technologies that use digitized consumer financial data have led to the development of new financial products and services for consumers in recent years. Open banking refers to the practice of giving financial services firms access to customer banking and other financial data to facilitate the development of new types of products and services for consumers. Innovation in financial technology-commonly referred to as fintech-is a subject of great interest for the public and policymakers. While new innovations, such as data sharing, can benefit consumers through new and affordable financial products and services, increasing access to consumer data can also pose data security and privacy risks to consumers. This Insight discusses data sharing market and technological developments. Then, it discusses the status of the Consumer Financial Protection Bureau (CFPB) Section 1033 rulemaking about consumer- authorized access to financial data, which will impact financial data sharing developments in the future. Data Sharing Market and Technology Developments Financial products and services that rely on consumer data can provide improved and innovative offerings to consumers, enabling them to manage personal finances, automate or set goals for saving, receive personalized product recommendations, apply for loans, and perform other tasks. For example, some companies provide data aggregation services, a type of data sharing service wherein consumers give the aggregator permission to access information across their financial accounts and put it into a standardized summarized form to help make it easier for consumers to manage their money (e.g., Mint, Yodlee). In addition, some payment processor companies enable other application services to connect to consumers' financial accounts in order to provide new services, such as peer-to-peer transfers and other payment services (e.g., Plaid). One technology commonly used to collect financial account data is web scraping, a technique that scans websites and extracts data fromthem. In general, web scraping can be performed without a direct relationship with the website or financial firm maintaining the data. As an alternative, the financial institution managing the account may provide customer account information to another financial firm through a structured data feed or application program interface (API). Advantages and disadvantages exist Congressional Research Service https://crsreports.congress.gov IN11745 CRS INSIGHT Prepared for Membersand Committeesof Congress

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