How Section 1033 could change your approach to open banking

This webinar provides an overview of Section 1033 of the Dodd-Frank Act and its implications for open banking. It covers what the proposed ruling entails, who it impacts, key provisions, intended outcomes, and challenges around implementing it. The webinar also addresses building blocks for compliance, including cybersecurity, data governance, and lines of defense. The webinar features a panel discussion on potential unintended consequences and lessons learned from other countries.

Presenters

• Mohammad Nasar, Principal, Consulting
• Michael Dickey, Consulting
• Asaad Faquir, Consulting
• Pete Mannebach, Consulting  

Webinar topics

• Section 1033 aims to push the industry toward open banking, which allows financial institutions to share customer data via APIs with authorized third parties. The goal is to empower consumers by giving them more control over their financial data.
• The proposed ruling covers key data including transaction data, account balances, upcoming bills, account info, and terms and conditions for financial products like credit cards. Mortgage data would not be covered.
• Financial institutions, credit card issuers, consumers, third parties, and data aggregators are the major parties affected. Financial institutions must open up data access, while third parties must get express consumer consent.
• Key provisions require third parties to emphasize consumer awareness and consent; they require data providers to have Gramm-Leach-Billey Act-compliant security programs; and they require API developers to move away from risky practices like screen scraping.
• Desired outcomes are increased consumer control, more competition and innovation in financial services, and better security standards.
• Data governance, even if not explicitly called out, will be critical to ensure high-quality data. Cybersecurity tools and culture are also pivotal to manage risks.
• Because smaller institutions might struggle with implementation costs, organizational consolidations are one possible consequence. But opportunities will exist to better leverage consumer data.
• Compliance timelines range from 6 months to 4 years depending on organization size and type. Annual reauthorization will be required.
• Standard-setting bodies remain uncertain, but progress abroad can be instructive. Security and ease of consumer access should remain a top priority.

Note: Only attendees of the live webinar are eligible for CPE or CLE credit for qualifying webinars. If you view the webinar recording on this page you may not be eligible for CPE or CLE. For questions about CPE contact [email protected].

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