In "Banking Regulation To Watch In 2023," Jeff says of the rules, which will affect banks and fintech firms:
"This could have a huge impact on the relationship between banks and consumers and the ability of fintechs to challenge banks," said Jeff Alberts of Pryor Cashman LLP.
In the U.K. and Europe, Alberts said, consumers have had the right for some time now to tell their banks to make their personal account data available to authorized, regulated third parties. That has stimulated competition between banks and nonbank fintech companies, particularly in the payment space, by lowering barriers to the flow of information — and customers — from one provider to another.
"Here in the United States, that's been more difficult to do," Alberts said. "Banks generally haven't been compelled to release their customers' data to a challenger, even if the customer wants them to do that, so if the CFPB is successful in passing these regulations, that could push banks to open themselves up to open banking and really reshuffle how banking operates in the U.S."
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[Law360] Banking Regulation To Watch In 2023
Originally published by Law360
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