“AFC recognizes and appreciates the monumental effort put forward by the Consumer Financial Protection Bureau (CFPB) to establish a robust Open Banking framework through the finalization of its Personal Financial Data Rights rule. However, we are deeply concerned about the CFPB’s decision to finalize this rule without properly considering and amending regulatory provisions regarding the secondary use of consumers’ data for the cross-selling of financial products and conducting targeted advertising.

The rule’s previously identified principles of bolstering competition and ensuring consumers have access to their data are incongruent with the CFPB’s decision to finalize the strict prohibitions on the secondary use of consumer data. When utilized responsibly, consumer data used for cross-selling financial products and conducting targeted advertising is helpful for improving the financial wellness of a consumer.

As discussed in AFC’s comment letter on the CFPB’s proposed Personal Financial Data Rights rule, responsible fintech companies and innovative banks can leverage consumers’ data to offer improved products and services to historically underserved communities and provide additional responsible services beyond those the consumer initially sought. While AFC recognizes that the CFPB amended its rule to provide additional examples of permitted uses of consumer data, “that are reasonably necessary to allow for improvement of the consumer’s requested product or service,” they unfortunately do not solve the issues at the heart of our concerns.

AFC is also disappointed at the CFPB’s decision to finalize the rule’s provisions regarding annual reauthorization requirements without amendment. While AFC agrees that consumers are protected, at least in part, by requiring an annual reauthorization for the collection of their data, maximum duration and reauthorization requirements present the need for further evaluation in order to ensure the most effective outcome for consumers and the usability of the financial products and services with which they engage.

Given the substantial issues within the CFPB’s final rule on Personal Financial Data Rights, AFC respectfully requests an immediate reassessment of the rule’s provisions and further guidance on the matter. In lieu of that, AFC calls upon Congress to act with the necessary force to remedy the issues with the rule’s secondary use and annual reauthorization provisions.”