On October 18, the Consumer Financial Protection Bureau ("CFPB" or "Bureau") entered into the long simmering debate over consumer-authorized data sharing. This debate pits mainstream financial institutions, which are typically reticent to share customer data with third parties, against data aggregators and other fintechs. Those newer companies provide services directly to consumers—or to enhance the consumer experience—and rely on data from mainstream institutions in order to do so. Both sides are grappling with complex issues surrounding consumer information, including who owns consumers' financial data as well as how it can be used, shared, and kept secure. The CFPB released a set of nine consumer protection principles to address those and other issues and "help safeguard consumer interests as the consumer-authorized aggregation services market develops." Read the full report on our sister site, the Technology Law Dispatch.
This article is presented for informational purposes only and is not intended to constitute legal advice.