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With all the attention now focused on changes at the banking agencies come January, it is easy to overlook that the regulators are still moving ahead with different initiatives in the interim. In Luse Gorman, PC's latest edition of the Bankers' Bulletin, we cover regulatory and enforcement developments from October, including the #CFPB’s open banking rule, the #OCC’s supervision plan for 2025, AI guidance from #NYDFS, the #FDIC’s brokered deposit rule comment period, a novel banking charter issued in Georgia, and more. Check out the Bulletin at the link below.

The CFPB's Open Banking rule will represent a seismic shift in the industry, if it survives legal challenges. Retail banks and digital wallets will need to carefully parce both the Rule itself and the hundreds of pages of Supplementary Information to fully understand its import.

The Consumer Financial Protection Bureau's new regulation, designed to facilitate customer access and transfer of financial data, empowers banks to decline partnerships with financial technology companies deemed potentially risky. However, traditional lenders express concerns over the clarity of these provisions. Announced on October 22, the final open banking rule mandates that banks provide fintechs access to customer deposit and credit account data, contingent upon customer consent. Banks caution that this could lead to increased vulnerability to data breaches and fraud while complicating compliance efforts. The CFPB's rule also permits banks to deny data requests that present a risk and fail to meet the technical standards set by an agency-approved industry body.

The Consumer Financial Protection Bureau has rolled out a new regulation aimed at making it easier for customers to access and share their financial data. This rule gives banks the power to turn down partnerships with fintech companies they consider risky. However, traditional lenders are raising eyebrows over how clear these rules really are. Announced on October 22, the final open banking rule requires banks to give fintechs access to customer deposit and credit account data, but only if the customer agrees. Banks warn that this could open the door to more data breaches and fraud, while also making compliance more challenging. The CFPB's rule also allows banks to reject data requests that pose a risk and don't meet the technical standards set by an industry body approved by the agency.

The latest in-depth FedFin analysis parses the hundreds of pages in the CFPB’s open-banking rule.?As noted, I agree that my data are my property and cannot be used for bank profit even if the profit derives from?a fee for sending me what I need to evaluate the bank’s offering. https://lnkd.in/erPn4a9w But the CFPB’s no-fee approach also requires banks give away the data on which their franchise value?depends?to competitors just for prospecting in the bank’s vault, not after I’ve decided to move my money, when the bank should do what I say no matter the annoyance of administering an account closing and transfer.?This is like requiring Safeway to run no-cost shuttles to Whole Foods?if I think bananas might be cheaper?up the street.?I’m also astounded by the Bureau’s flat-out skepticism that data providers like banks will never do anything for consumers??unless there’s a gun pointed straight at them.?Even more?unnerving:?the sanguine view that third parties need only self-certify that they can comply with the Bureau’s requirements to get valuable, dangerous personal consumer data.?The Bureau’s view that its competition mandate trumps?the banking agencies’ safety-and-soundness standards also astonishes.

Excited about the CFPB's proposed data-sharing rule! This is a great step forward for open banking and financial empowerment. By allowing consumers to easily transfer their banking data and connect with third-party apps, the rule will foster more competition and innovation in the financial services industry. This could lead to a wider range of products and services tailored to individual needs, ultimately benefiting consumers. While some may raise concerns, I believe the potential for a more dynamic and competitive financial landscape outweighs them. #openbanking #financialtechnology #consumerchoice

? The Bank Policy Institute, American Bankers Association, The Clearing House and the Consumer Bankers Association have requested more time for banks to comply with the Consumer Financial Protection Bureau data rights rule. The groups have written a joint letter to CFPB director Rohit Chopra. Read the full story at the ?? #openbanking #compliance #datasharing #financialdata #banking #bankingindustry #USbanks #openfinance https://lnkd.in/epsiGSJs

?? CFPB's New -- and Long-Awaited -- Rule On Open Banking ?? The Consumer Financial Protection Bureau (CFPB) dropped a bombshell with its new rule on Personal Financial Data Rights, aiming to accelerate open banking in the U.S. ?? Within hours of its announcement, the rule faced immediate legal challenges!???? ???What's Inside the Rule? --Enhanced consumer access to financial services and data ??? --Obligations for data providers, authorized third parties, and data aggregators ??? --Exclusions for small depository institutions with assets under $850 million ?? ? Key Questions (Read Our Alert Below For The Answers) ??? Who needs to comply? ??? What data must be made available? ??? Will the rule end the practice of screen scraping? ???That Didn't Take Long...?The Bank Policy Institute and Kentucky Bankers Association are already suing, claiming the rule exceeds CFPB's authority.??Will this rule survive the courtroom showdown? ??? ???Compliance Deadlines: --April 1, 2026, for the largest institutions ??? --Staggered deadlines until April 1, 2030, for smaller entities ? ???Security Concerns: Cybercriminals could exploit the access required by the rule to steal consumer data. Among other challenges will be distinguishing real requests from fake ones ??? ?? Click the link to read our full take on the rule and its potential impacts: https://lnkd.in/eszU79wM ???What’s Next?? Our Mayer Brown team hosted its first webinar on the rule last week. Follow us for more updates as the story develops! #OpenBanking #CFPB #FinancialRegulation #CyberRisk #Data David Beam Justin Herring Matthew Bisanz Eric Mitzenmacher Kelly Truesdale Jeff Taft

The CFPB's Section 1033 proposed ruling is expected to be implemented in the fall of this year. Concerned? Not only do our team have extensive experience supporting banks and FI's worldwide in deploying open banking APIs, but they also stay up to date with the latest global versions, which means we're all over the 1033 Dodd-Frank ruling, and we've put together an essential guide for it. Here's what's inside: - Who is the CFPB and what's their role? - What is 1033 in open banking? - Types of data covered under Section 1033. - Compliance Requirements. - When will the proposed rule come into effect? - Challenges banks and fintechs may face. - Preparing for section 1033. Access the guide here: https://ow.ly/NFp150SSMEJ Eyal Sivan #CFPBSection1033 #OpenBankingAPIs #DoddFrank #ComplianceGuide #RegulatoryCompliance

Fried Frank partner Joseph Vitale will be participating on the panel titled, "The Evolution of Bank Payments: The Future is (Fed)Now?" at The Banking Institute hosted by at the University of North Carolina School of Law’s Center for Banking and Finance on March 27th. Panelists will discuss the latest developments in bank payments, including the launch of instant payment systems, as well as the rise in the use of P2P, B2B and R2P payment mechanisms. Click below for more details and to register.