Plaid has issued recommendations for the Consumer Financial Protection Bureau (CFPB).
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The recommendations were written in response to a CFPB call for stakeholder feedback on a proposal to protect the privacy of financial consumers.
The Plaid letter explains that the CFPB draft regulations, published in October 2022, contribute to the goal of consumer empowerment. This letter also notes that such intentions are fully consistent with the goal-setting formulated by the Dodd-Frank Law, which is aimed at minimizing the risks of the US financial system.
Plaid calls the draft regulations a way to create a transparent, fair, and open financial services market for fair competition.
The CFPB notes that if the current set of rules is finalized, it becomes necessary to introduce a common obligation for all firms to provide financial information to consumers or a third party at the direction of customers.
Plaid outlined five recommendations. The Company insists on the need to approve as a mandatory comprehensive right of access to financial information. The firm also believes that consumers should have a guaranteed opportunity to demand transparency in the process of providing financial services and control over personal data.
The recommendations of Plaid provide for constant access of clients to confidential information, regardless of where they dispose of their money. The company also considers it necessary to establish a high level of personal data protection based on the API and control over data aggregators.
Ben White, a policy and technical standards specialist at Plaid, said that compliance with the recommendations will allow the CFPB to ensure that consumers will have constant access to their data. He also noted that the improvement of the draft regulations will ensure a high level of protection of confidential information and contribute to the active development of the ecosystem of financial services.
As we have reported earlier, Plaid & Wise made an open finance agreement: now Wise customers can connect to thousands of apps.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
