Concerns About Consumer Protection, Consumer Control
WASHINGTON — The American Bankers Association expressed concerns about consumer protections at a Consumer Financial Protection Bureau field hearing on third party access to consumer financial data today in Salt Lake City.
Robert Morgan, vice president, emerging technologies at ABA testified on behalf of the association. In his testimony, Morgan explained the rapid evolution of technology and how it is changing the way consumers manage and spend their money.
“One such technology is data aggregation,” said Morgan. “This data aggregation facilitates bank-fintech partnerships and gives consumers access to innovative services that they love.”
Morgan emphasized that banks are actively developing ways to facilitate data access, while urging caution and the need to do so safely and securely.
“Let me be clear, banks fully support and are working to ensure that their customers have the ability to safely share and control their data,” said Morgan. “This is not as easy as flipping a switch, as some have suggested. There is a lot of coordination that needs to go on between our nation’s 6,000 banks, their technology providers, data aggregators, and their customers.”
In addition, he outlined the industry’s top three concerns:
- Security: Consumers deserve the same level of security and protection when they share their data as they receive from their banks today.
- Transparency: Consumers have the right to know where their data is being shared and how it is being used.
- Control: Customers should have control over what data is shared and how their data is used.
He also urged the CFPB to avoid new regulation — which could stifle innovation — in favor of continued work by banks of all sizes and their technology partners toward protocols and methods of securely sharing data.
“We all want to get to a place where consumers get innovative services in a safe and secure environment,” he said. “In order to accomplish this, a lot of work must be done and serious issues must be addressed.”