REDWOOD CITY, Calif., Feb. 21, 2017 /PRNewswire/-- The Consumer Financial Data Rights (CFDR) group, an industry consortium supporting the consumer's right to unfettered access to their financial data, submitted a response today to the Consumer Financial Protection Bureau's (CFPB) request for information (RFI) regarding consumer access to financial records. In their comment letter, the CFDR advocates for eliminating restrictions on the consumer's ability to access and permission their financial data, and for the financial services industry in the United States to embrace an open application program interface ("Open API") framework.
The CFDR is a new industry group formed by some of the most recognized companies in the financial sector, including Affirm, Betterment, Digit, Envestnet | Yodlee, Kabbage, Personal Capital, and Varo Money. The CFDR recently expanded with five new member companies: Capsilon, Earnup, Petal, Sipree, and SoFi. These companies will join existing CFDR members in promoting and helping to protect the consumer's right to access their own financial data safely and securely, and without hidden limitations.
"As a group, we fully support the creation of an Open API framework to enable financial innovation and improve the financial health of consumers," said Anil Arora, CEO of Envestnet | Yodlee. "Over 17 years ago, Envestnet | Yodlee pioneered direct and open connectivity to financial data via APIs. Now we strive to work collaboratively with financial institutions, fintech service providers, and regulators to provide consumers with access to powerful, technology-based tools that can help them improve their financial well-being."
While some institutions have moved toward an approach that allows banks to restrict access to the consumer's financial data and potentially limit the consumer's ability to share their data, the CFDR supports the consumer's right to access their financial data as codified by Section 1033 of the Dodd-Frank Act. This right enables consumers to use innovative products and services that improve their financial health.
"Without clear regulatory requirements, the CFDR believes large banks and other financial institutions will continually seek to control access available for consumers to share their financial data, and restrict how that information may be used and shared," said Jon Stein, founder and CEO of Betterment. "The CFDR supports the consumer's right to decide which pieces of their own financial data they're able to access and permission, which is critical to empowering consumers with the necessary tools to improve their financial outcomes."
About Consumer Financial Data Rights (CFDR)
The Consumer Financial Data Rights (CFDR) is a new industry group formed by some of the most recognized companies in the financial sector, launched to support the consumer's right to unfettered access to their financial data. Open data access is critical to enabling innovative tools that can help consumers improve their financial lives. CFDR members seek to: drive financial innovation in a collaborative ecosystem by bridging the needs of consumers, banks, fintech innovators, and regulators; partner with banks to support unfettered access to consumer and small business data through a secure and open financial system; and promote the consumer's right to access and share their financial data with third party companies that provide tools to enable better financial outcomes.