The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Smaller banks exempted from CFPB’s open-banking rule

The Consumer Financial Protection Bureau created an exemption for smaller banks when it comes to the agency’s new open banking rule.

Banks with less than $850 million in assets will not be required to implement Section 1033 of the Dodd-Frank Act, according to the massive 594-page rule. That would exempt about 3,370 banks, based on data from the Federal Deposit Insurance Corp.

The final rule requires data providers to make covered data available to consumers and authorized third parties upon request. It includes functional requirements intended to ensure data providers make the data available “reliably, securely and in a way that promotes competition.” Screen scraping is prohibiting for transferring the data.

The CFPB will require data providers to publicly disclose certain information about itself to facilitate access to covered data and to promote accountability.

Compliance will be implemented in phases, with larger providers subject to the rule sooner than smaller ones.

Financial firms with at least $250 billion in total assets and nondepository institution data providers that generated at least $10 billion in total receipts must comply by April 1, 2026; the rest will need to fall in line by April 1, 2030.

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